Executive Overview

Are short-term rentals allowed in Ashland, KY? Yes, short-term rentals are permitted in Ashland, Kentucky, but they are subject to specific regulations and requirements. The city has implemented a comprehensive rental registration ordinance and zoning framework that governs short-term rental operations. While the city does not have a standalone short-term rental ordinance, short-term rentals are treated as rental properties and must comply with the city's rental registration requirements, zoning regulations, and applicable building codes.

How to Start a Short-Term Rental Business in Ashland, KY

Step 1: Property Zoning Compliance

Before acquiring or converting any property for short-term rental use, investors must verify that the intended use is permitted under Ashland's zoning ordinances. The city uses a traditional zoning framework with the following residential districts where short-term rentals may be considered:

• R-12 Residential/Low Density: Primarily single-family dwellings
• R-6 Residential/Medium Density: Single-family dwellings
• R-5 Residential/Medium Density: Mix of single-family, two-family, and multi-family units
• R-4 Residential/High Density: High-density multi-family uses
• R-E Residential Estate: Single-family dwellings on large lots

Important: Bed and breakfast facilities are specifically listed as conditional uses in Article XIII of the zoning ordinance, requiring approval through the conditional use permit process.

Step 2: Rental Registration (Mandatory)

All rental properties, including short-term rentals, must be registered with the City of Ashland under the 2021 Rental Registration Ordinance. This requirement applies to all rental property owners within city limits.

Registration Process:

1. Complete the online registration form available through the City of Ashland's official website
2. Submit required property information
3. Pay any applicable fees (if applicable)
4. Maintain current registration status

Penalties for Non-Compliance: The city has authority to impose fines of $100 per day for every unregistered unit within city limits.

Step 3: Business License Requirements

Short-term rental operators must obtain appropriate business licenses from the Finance Department:

• Business License Application (required for commercial operations)
• Net Profit License Fee documentation
• Occupational License Fee as applicable

Step 4: Building and Safety Compliance

Ensure all properties meet applicable building codes, fire safety requirements, and housing standards. Properties must maintain compliance with:

• Building codes
• Fire safety regulations
• Health and safety standards
• Property maintenance requirements

Step 5: Ongoing Compliance and Reporting

• Maintain current rental registration status
• Comply with ongoing zoning requirements
• Submit to periodic inspections as required
• Maintain records for city inquiries

Required Documents, Permits, Licenses, and Guidelines

Essential Documentation:

1. Rental Registration Certificate

   • Property address and owner information
   • Unit details and specifications
   • Contact information for property management

2. Business License Documentation

   • Completed business license application
   • Net profit license fee documentation
   • Occupational license fee documentation

3. Zoning Compliance Verification

   • Proof that short-term rental use is permitted in the zoning district
   • Conditional Use Permit (if required for bed and breakfast operations)
   • Variance documentation (if applicable)

4. Property Compliance Documentation

   • Building permits (if any modifications were made)
   • Safety inspection certificates
   • Insurance documentation
   • Proof of compliance with property maintenance standards

5. Operational Documentation

   • Standard operating procedures
   • Guest policies and house rules
   • Emergency contact information
   • Local contact person information (if owner is not local)

Permit Requirements:

• Building Permits: Required for any structural modifications
• Rental Registration: Mandatory for all rental units
• Conditional Use Permit: Required for bed and breakfast facilities
• Business License: Required for commercial operations
• Special Event Permits: May be required for larger events or gatherings

Specific Regulations for Short-Term Rentals

City of Ashland Regulations

Rental Registration Ordinance (2021):

• All rental properties must be registered with the city
• $100 daily fines for unregistered units
• Registration information maintained as confidential
• Online registration system available
• Contact Property Maintenance Division for assistance

Zoning Requirements:

• Short-term rentals must comply with underlying zoning district requirements
• Bed and breakfast facilities require conditional use permits
• Home occupations are permitted in all districts but with strict limitations
• No more than 25% of one floor area can be used for home occupation
• Only one non-resident employee permitted
• No exterior indication of business operations (except permitted signage)

Parking Requirements:

• Residential: 1 space per unit
• Bed and Breakfast: 1 space per room plus 1 additional space per 5 rooms
• Off-street parking requirements apply
• Parking must meet design standards in Article V of zoning ordinance

Boyd County Regulations

The provided content does not contain specific Boyd County short-term rental regulations. County-level regulations may apply to properties located outside city limits but within county jurisdiction.

State of Kentucky Regulations

While not detailed in the provided content, Kentucky state regulations may apply to short-term rentals, including:

• Kentucky Revised Statutes Chapter 100 (planning and zoning)
• Kentucky state business licensing requirements
• Kentucky state tax obligations (room tax, sales tax)
• Kentucky state health and safety requirements

Note: Investors should consult with legal counsel to ensure compliance with applicable state regulations.

Contact Information for Local Authority

Primary Contacts:

City of Ashland Property Maintenance Division

• Phone: (606) 385-3317
• Purpose: Rental registration assistance, property maintenance questions
• Website: Available through City of Ashland official website

Community & Economic Development Department

• Planning & Zoning Division: Zoning compliance questions, conditional use permits
• Code Enforcement: Building permits, property standards
• Website: Available through City of Ashland official website

Finance Department - Business Licenses

• Business License Division: Business license applications, occupational fees
• Customer Service: (606) 385-2000
• Website: Available through City of Ashland official website

Additional Resources:

City of Ashland

• Official Website: www.ashlandky.gov
• Main Phone: (606) 385-2000
• Address: City of Ashland Municipal Building

Planning & Zoning Administration

• Zoning Administrator: For zoning compliance questions
• Board of Zoning Adjustment: Appeals, variances, conditional use permits

Important Compliance Considerations

Operational Restrictions:

1. No exterior business indicators except as permitted by city signage ordinances
2. Limited commercial vehicle use for business operations
3. Guest limitations based on residential character protection
4. Noise and nuisance provisions apply to all rental properties
5. Property maintenance standards must be maintained at all times

Financial Obligations:

1. Registration fees (if applicable)
2. Business license fees
3. Property taxes on rental properties
4. State and local taxes on rental income
5. Potential fines for non-compliance

Insurance and Liability:

• Maintain appropriate insurance coverage for short-term rental operations
• Consider liability protection for property damage and guest injuries
• Ensure coverage extends to commercial rental activities

Links to Source Pages

Primary Regulatory Documents:

1. City of Ashland Rental Registration Ordinance: www.ashlandky.gov/news_detail_T70_R69.php
2. City of Ashland Zoning Ordinance (June 2024): cms8.revize.com/revize/ashland/Departments/Community%20&%20Economic%20Development/Planning%20&%20Zoning/ADOPTED%20June%202024.pdf

Additional Resources:

3. Code of Ordinances: codelibrary.amlegal.com/codes/ashlandky/latest/overview
4. Business License Information: www.ashlandky.gov/departments/finance/business_licenses/index.php
5. Property Maintenance Division: Available through City of Ashland website

Government Resources:

6. City of Ashland Official Website: www.ashlandky.gov
7. Boyd County Government: boydcountyky.gov/
8. Commonwealth of Kentucky: kentucky.gov/

Compliance Checklist for STR Investors

Before Operation:

• [ ] Verify zoning compliance for intended use
• [ ] Complete rental registration process
• [ ] Obtain required business licenses
• [ ] Secure appropriate insurance coverage
• [ ] Ensure property meets safety standards
• [ ] Develop operational procedures
• [ ] Set up tax reporting systems

Ongoing Compliance:

• [ ] Maintain current registration status
• [ ] Renew business licenses annually
• [ ] Pay applicable taxes and fees
• [ ] Respond to city inquiries promptly
• [ ] Maintain property standards
• [ ] Monitor regulatory changes

Annual Requirements:

• [ ] Business license renewal
• [ ] Rental registration updates
• [ ] Tax filing compliance
• [ ] Insurance policy updates
• [ ] Property maintenance compliance

This guide provides a comprehensive framework for short-term rental investment in Ashland, Kentucky. However, regulations can change, and investors should consult with local authorities and legal counsel to ensure full compliance with all applicable requirements.