Overview: Are Short-Term Rentals Allowed in Downs, KS?

Yes, short-term rentals are allowed in Downs, Kansas. Based on market data showing 19 active STR listings and a "Moderate" regulation level, Downs permits short-term rental operations. However, the market shows only 26% of listings showing registration in 2025, suggesting that while STRs are permitted, compliance requirements may not be universally enforced or clearly established.

Downs is a city in Osborne County, Kansas, with a population of approximately 800 residents. The market demonstrates active STR activity with properties ranging from entire homes to private rooms, indicating an established short-term rental ecosystem within this small Kansas community.

How to Start a Short-Term Rental Business in Downs, KS

Market Analysis and Opportunity Assessment

Before launching your STR in Downs, analyze the current market conditions:

Key Market Metrics (2025 Data):

• Active Listings: 19 properties
• Median Annual Revenue: $3,004
• Average Daily Rate: $71
• Occupancy Rate: 18.1%
• Revenue Growth: -41.5% year-over-year (significant decline)

Market Composition:

• Room Type Distribution: 68.4% Private Rooms, 31.6% Entire Places
• Property Types: 63.2% Hotel/Boutique, 15.8% Houses, 21% Other
• Bedroom Distribution: 89.5% are 1-bedroom properties
• Guest Capacity: 47.4% accommodate 2 guests, 36.8% accommodate 4 guests

Property Selection Strategy

Based on market performance data, successful properties in Downs typically feature:

1. Property Type Focus: Consider entire homes for higher revenue potential or private rooms for lower investment
2. Location Strategy:
   • Downtown Downs for convenience access
   • Near Lake Wilson for outdoor enthusiasts
   • Highway 24 corridor for travelers
3. Size Optimization: 1-bedroom properties dominate the market and may offer better occupancy

Business Setup Process

1. Property Acquisition: Median home value is $95,404, providing relatively low entry costs
2. Insurance Coverage: Secure comprehensive liability and property insurance
3. Business Registration: Consider registering as a business entity
4. Banking: Establish separate business banking accounts
5. Accounting: Set up bookkeeping systems for tax compliance

Required Documents, Permits, Licenses, and Guidelines

Registration Requirements

Based on market data indicating 26% of listings show registration, Downs appears to require some form of STR registration, though specific requirements are not detailed in available sources.

Recommended Registration Steps:

1. Contact Osborne County government offices
2. Contact City of Downs municipal offices
3. Verify current registration requirements
4. Complete any required applications
5. Maintain current registration status

Business Documentation

Essential Documents:

• Property ownership or lease documentation
• Business registration certificate
• Insurance policies (liability and property)
• Tax identification numbers
• Sales tax registration (if required by Kansas law)

Health and Safety Compliance

Kansas State Requirements (applicable to all rental properties):

• Compliance with Kansas Residential Landlord and Tenant Act
• Adherence to local housing codes if applicable
• Smoke detector installation and maintenance
• Basic safety equipment (fire extinguishers recommended)

Specific Regulations for Short-Term Rentals

City-Level Regulations

No specific city-level STR ordinances were identified in the available sources. Downs operates under a "Moderate" regulatory framework without documented city-specific short-term rental restrictions.

County-Level Regulations

No Osborne County-specific STR regulations were identified. Osborne County appears to defer to state-level regulations for short-term rental operations.

State-Level Regulations (Kansas)

Kansas Residential Landlord and Tenant Act (K.S.A. 58-2543 et seq.)

Key Provisions Affecting STRs:

1. Security Deposit Limits:

   • Unfurnished properties: Maximum 1 month's rent
   • Furnished properties: Maximum 1.5 months' rent
   • Additional 0.5 months for pets

2. Tenant Rights and Landlord Responsibilities:

   • Landlord must maintain property in compliance with housing codes
   • Adequate heat supply during winter months (minimum 68°F capability)
   • Functional plumbing, electrical, and safety systems
   • Trash removal availability

3. Entry Requirements:

   • Landlord must provide "reasonable notice" before entry
   • Emergency entry allowed without notice
   • Entry must be at "reasonable times"

4. Prohibited Lease Clauses:

   • Exculpatory clauses (landlord immunity)
   • Confession clauses (advance guilt admission)
   • "As is" repair disclaimers
   • Unrestricted landlord entry rights
   • Automatic security deposit forfeiture clauses

Transient Occupancy Exemption:

• The Act specifically exempts "transient occupancy in a hotel, motel, or rooming house" from coverage
• This suggests that very short-term rentals (hotel-like operations) may fall outside standard landlord-tenant regulations

Tax Obligations

Kansas State Taxes:

• Sales tax may apply to short-term rental income
• State income tax applies to rental revenue
• Local sales taxes may also apply

Reporting Requirements:

• Federal Schedule E for income tax reporting
• Kansas state income tax returns
• Potential sales tax filings depending on rental structure

Contact Information for Local Authority

Primary Contacts

City of Downs

• Municipal Office: Contact Osborne County for city government contact information
• Planning/Zoning: Osborne County Planning Department

Osborne County Government

• County Clerk: Primary contact for permits and business registration
• County Courthouse: Main administrative offices
• Address: Osborne County Courthouse (location in Osborne, KS)

State-Level Resources

• Kansas Department of Revenue: (785) 368-8222
• Kansas Secretary of State Business Center: (785) 296-4564

Recommended Contact Sequence

1. Start with Osborne County Clerk - Verify permit and registration requirements
2. Contact City of Downs - Confirm municipal compliance requirements
3. Kansas Department of Revenue - Clarify tax obligations
4. Local Fire Department - Verify safety equipment requirements

Source Links

• STRProfitMap - Downs, KS Market Analysis
• AirROI - Downs Airbnb Market Report
• Kansas Tenants Handbook - Housing & Credit Counseling, Inc.

Strategic Considerations for Investors

Market Challenges

• Low Occupancy: 18.1% average occupancy indicates challenging market conditions
• Revenue Decline: 41.5% year-over-over decline suggests market headwinds
• Seasonality: Peak season (June) vs. low season (February) creates significant income variability

Competitive Positioning

• Minimum Stay: 94.7% of listings require 1-night minimum stay
• Cancellation Policies: 63.2% use flexible policies, 31.6% moderate policies
• Property Mix: Opportunity to differentiate with longer minimum stays or stricter policies

Investment Recommendations

1. Thorough Due Diligence: Verify all local requirements before investment
2. Conservative Financial Projections: Account for low occupancy and seasonal fluctuations
3. Property Type Selection: Consider unique property features or superior amenities
4. Management Strategy: Professional management may be essential for success
5. Regulatory Monitoring: Stay informed about potential future regulations

Important Disclaimer: This guide is based on limited available data. Investors should directly contact local authorities to verify current requirements and regulations before making any investment decisions.