1) Overview: Are Short-Term Rentals (STRs) Allowed in Spirit Lake?

Yes. Short-term rentals are allowed in Spirit Lake. Iowa state law prevents cities from adopting STR-specific land use rules or permit requirements. STRs must be treated as a permitted residential land use for zoning purposes. That said, general city zoning, building, health and safety, nuisance, traffic, and property maintenance standards still apply. If an STR is operated as a home occupation, it must meet the conditions of Spirit Lake’s home occupation ordinance.

Statewide, Iowa Code §414.1(1)(e) explicitly prohibits cities from enacting STR-specific ordinances (including bans, caps, conditional use permits, or licensing fees) and requires that STRs be treated as a residential use for zoning. Spirit Lake confirms no separate STR permit regime on its zoning portal and indicates compliance is controlled by its zoning code and general ordinances.

Key compliance summary:

• No city STR license or permit is required by state law.
• STRs must comply with local zoning (including any home occupation standards if applicable), building and fire codes, health/safety, nuisance, parking, noise, and property maintenance regulations.
• Zoning determination or a zoning permit/letter may be needed to confirm the use is permitted on a specific parcel or to confirm a home occupation complies.

Sources: Iowa Code §414.1 (PDF); City of Spirit Lake Zoning Ordinance.

2) How to Start a Short-Term Rental Business in Spirit Lake

Use the following step-by-step approach to establish and operate a compliant STR:

1. Confirm zoning eligibility and home occupation conditions

• Review Spirit Lake’s zoning districts (R-1 through R-7 for residential; C-1/C-2 commercial; I-1/I-2 industrial) to verify short-term rental use is permitted. If operating from a residence, confirm the STR meets home occupation standards (Article XVIII, Section 18.7 of the zoning ordinance).
• If uncertain, request a zoning determination/letter from the Building & Zoning Department or submit plans with the zoning/building permit application process outlined in Articles XXIV and XXVII.
• Reference: City of Spirit Lake Zoning Ordinance.

2. Meet Iowa health and safety requirements

• Maintain structural integrity; provide adequate heating/cooling; ensure the property is pest-free and meets basic sanitation standards.

3. Register for applicable state and local taxes

• Iowa state sales tax and local hotel/motel tax may apply to STR income. Register through the Iowa Department of Revenue and remit as required. Confirm the local hotel/motel tax rate and any registration requirements with Dickinson County or the City, as rates and administration can vary.

4. Align with city general ordinances

• Ensure compliance with Spirit Lake’s noise, nuisance, parking, sign, off-street parking, and property maintenance regulations as applicable to any residential or commercial property.

5. Prepare your property and listing

• Equip the property with essential safety features (smoke alarms, CO detectors where applicable) and ensure all advertised amenities are accurate and safe.
• Publish guest rules that reinforce compliance with local ordinances (quiet hours, occupancy limits, parking, trash/recycling, maximum nights, etc.).

6. Keep records and communications

• Maintain tax records, guest logs, and communications that demonstrate compliance with state and local requirements.

Sources: Iowa Code §414.1; City of Spirit Lake Zoning Ordinance; market context (gosummer.com, checkmaterentals.com).

3) Required Documents, Permits, Licenses, and Guidelines

What you must have:

• No city STR-specific license or permit (Iowa law prohibits cities from requiring an STR license or permit fee).
• Zoning compliance: Confirm the STR use is permitted (and meets home occupation conditions if operating as a home occupation). A zoning determination/letter may be prudent; zoning/building permits may be required for structural or significant alterations.
• Health and safety standards: Maintain structural integrity, adequate heating/cooling, and sanitation, and ensure pest-free conditions.
• Taxes: Iowa state sales tax registration and local hotel/motel tax registration/remittance through the Iowa Department of Revenue and local authority.

What else you should consider:

• Business insurance appropriate for a short-term rental operation.
• Consistent adherence to noise, nuisance, parking, and property maintenance standards enforced under general city ordinances.
• Guest-facing house rules to reinforce compliance (occupancy limits, quiet hours, parking).

Sources: Iowa Code §414.1 (PDF); City of Spirit Lake Zoning Ordinance.

4) Spirit Lake/Zoning and State Regulations Applicable to STRs

Spirit Lake (city-level):

• Zoning compliance: STRs must be compatible with the underlying zoning. Spirit Lake has multiple zoning districts (R-1 through R-7 residential; C-1/C-2 commercial; I-1/I-2 industrial). Verify allowed uses within the subject district.
• Home occupations: If the STR is operated from a residence, Article XVIII, Section 18.7 (Home Occupations) establishes standards that must be met.
• General ordinances: Noise, nuisance, off-street parking (Article XXI), sign regulations (Article XXII), property maintenance, and building/safety codes apply as they do to other properties.
• Zoning/building permits: Articles XXIV and XXVII outline permitting, special exceptions, and administrative procedures if structural changes or special approvals are needed.

County and state-level:

• Local hotel/motel tax may apply; remit through the proper local authority.
• State sales tax likely applies; remit via the Iowa Department of Revenue.
• State preemption of STR-specific local ordinances: Iowa Code §414.1(1)(e) prohibits cities from adopting or enforcing STR-specific regulations or permit fees. Cities may enforce health and safety, nuisance, noise, traffic, and property maintenance rules in a manner consistent with enforcement for similar non-STR properties.

Use classification and permitted uses:

• Under state law, STRs must be classified as residential land use for zoning purposes. This means that if a use is a permitted residential use in a district, operating it as an STR is allowed absent STR-specific restrictions. However, any home occupation must meet the ordinance’s standards, and commercial lodging uses in residential districts would need to be assessed against the district’s permitted uses and any home occupation provisions.

Sources: Iowa Code §414.1 (PDF); City of Spirit Lake Zoning Ordinance.

5) Contact Information for Local Authority

• City of Spirit Lake – Building & Zoning Department

  • Address: 1803 Hill Avenue, Spirit Lake, IA 51360
  • Phone: 712-336-1871
  • Fax: 712-336-3854
  • Email: Contact form available on city website (see references)
  • Website: City of Spirit Lake Zoning Ordinance (references below)

• Iowa Department of Revenue

  • Tax registration and remittance guidance: Revenue.Iowa.gov
  • Phone: Check the Iowa Department of Revenue website for current contact information
  • Website: revenue.iowa.gov (references below)

• Dickinson County (local hotel/motel tax administration)

  • Check the county website for current contact information and tax registration details

Source: City of Spirit Lake Zoning Ordinance page.

6) Sources and Links

• Iowa Code §414.1 (PDF): www.legis.iowa.gov/docs/code/414.1.pdf
• City of Spirit Lake – Zoning Ordinance portal: www.cityofspiritlake.org/zoning- ordinance-2/
• Iowa Department of Revenue (for tax registration and guidance): revenue.iowa.gov
• Gosummer – STR overview and market notes for Spirit Lake, IA: www.gosummer.com/vacation-rental-management/spirit-lake-iowa
• Checkmate Rentals – STR overview and management for Spirit Lake, IA: www.checkmaterentals.com/airbnb-management/spirit-lake-iowa
• AirROI – Spirit Lake market data and STR analytics (2025): www.airroi.com/report/world/united-states/iowa/spirit-lake

Notes and cautions:

• Spirit Lake has no separate STR licensing or permit requirements, but property-specific zoning conditions (including home occupation rules) and general health/safety and nuisance ordinances still apply.
• Confirm hotel/motel tax and sales tax obligations directly with the Iowa Department of Revenue and local authorities. Always verify zoning and permitting requirements with the Building & Zoning Department before listing or renovating.