1) Are Short‑Term Rentals Allowed in Berea, KY?

Yes—explicitly allowed. Section 408(A) establishes a Short‑Term Rental (STR) category for “detached single family dwellings, duplexes, and multi‑family dwelling units” in zones where STRs are permitted or conditionally permitted. The ordinance defines STR as renting on a transient basis (less than 30 days).

• Zonal permissions (from Table 406.6):
  • R‑1, R‑2: Conditional (C)
  • R‑1A, R‑1T, R‑3: Conditional (C)
  • B‑1, B‑2, B‑3, B‑4: Permitted (P)
  • A, P‑1, I‑1, I‑2, PSF, INS: Conditional (C)

In practice, most STRs will require either (a) compliance with the by‑right standards of 408(A), or (b) a Conditional Use Permit (CUP) from the Board of Adjustment when one or more standards cannot be met. The Planning Commission’s role is generally for development plans (e.g., larger multifamily projects), not for most small STRs.

Source: Section 408(A) and Table 406.6 of the Land Management and Development Ordinance.

2) How to Start a STR Business in Berea

Step‑by‑step:

1. Confirm zoning eligibility and pathway

• Identify the subject property’s zoning district (see Official Zoning Map).
• Determine whether your STR model (whole‑unit vs. shared, building type, occupancy, parking) complies “by right” under 408(A) or requires a Conditional Use Permit.

2. Pre‑application conference (recommended)

• Meet with the Codes & Planning Office to confirm requirements, parking/occupancy calculations, and inspection readiness.

3. Apply for the short‑term rental permit

• Submit the STR application to the City of Berea Codes & Planning Office.
• If any of the 408(A) provisions cannot be satisfied (e.g., required parking cannot be provided), simultaneously file a Conditional Use Permit application with the Board of Adjustment (see Section 403; fees in Appendix I).

4. Obtain a City Business License

• Maintain a current City of Berea business license (separate from any state sales tax/“transient room tax” account). The City may require proof of state transient room tax registration before issuance (see Section 5).

5. Comply with life safety and building codes

• Complete a life safety inspection upon initial application and approval.
• Ensure smoke alarms per the current Kentucky Residential Code.
• Maintain safe, clean, and sanitary conditions under the Property Maintenance Code.

6. Demonstrate compliance with operational standards

• Guest check‑in by 10:00 pm.
• Two off‑street parking spaces per dwelling unit.
• Occupant load calculated per the Kentucky Building Code and Property Maintenance Code.
• Post 24‑hour owner/manager contact info inside each unit.

7. Annual registration

• STR registration is annual and non‑transferable. A new owner seeking to continue the STR must apply anew.

8. Ongoing compliance

• Register and remit the Kentucky transient room tax (if applicable).
• Keep records of occupancy, parking, and guest check‑in times.
• Maintain the property in code‑compliant condition. Three or more violations in a one‑year period can trigger revocation proceedings.

Sources: Sections 408(A), 403, and Appendix I (fee schedule).

3) Required Documents, Permits, Licenses, and Guidelines

• Short‑Term Rental Permit Application (City of Berea Codes & Planning Office)
• Conditional Use Permit application (if any 408(A) standard cannot be met)
• City of Berea Business License
• Kentucky “transient room tax” registration/account (state‑level) to legally collect and remit room tax
• Life safety inspection approval (Codes & Planning)
• Proof of smoke alarms compliance (KY Residential Code)
• Occupancy calculations per KY Building Code/Property Maintenance Code
• Parking plan showing two off‑street spaces per unit
• Posted owner/manager 24‑hour emergency contact inside the unit
• Annual STR registration renewal
• Property Maintenance Code compliance (ongoing)

Notes:

• Kentucky state‑level taxation, licensing, and any transient room tax obligations are handled via the Kentucky Department of Revenue; the City requires a business license and evidence of compliance with state tax requirements.
• If the property is part of a larger multifamily development requiring a development plan, submit per Section 401.3 and applicable checklists in Appendix H.

4) Specific Regulations: City, County, and State

A) City of Berea (primary STR regulations)

• Section 408(A) sets the core STR standards: application; annual registration; business license; transient room tax compliance; guest check‑in time; occupancy limits; two off‑street spaces; smoke alarms; life safety inspection; posted contact info; nontransferable registration.
• If a standard cannot be met, apply for a Conditional Use Permit (Section 403); the Board of Adjustment may attach conditions and has revocation authority.
• Three or more violations in one year can result in permit revocation.
• Maintain Property Maintenance Code standards at all times.
• Parking and occupant load are enforceable as listed; landscape buffers and fence/wall rules (Section 408 E) may apply to site changes (e.g., adding parking or screening).

B) Madison County

• No county‑specific STR regulations appear in the provided ordinance. County approvals are typically not required for standard STRs within city limits.

C) Kentucky State (for reference)

• STRs are subject to Kentucky’s transient room tax regime and any applicable state business licensing and taxation. Obtain a state account as needed to collect/remit room tax; the City’s business license often requires evidence of such compliance.

D) Zoning permissions (from Table 406.6)

• Permitted (P): B‑1, B‑2, B‑3, B‑4
• Conditional (C): R‑1, R‑1A, R‑1T, R‑2, R‑3, P‑1, I‑1, I‑2, PSF, INS, A

Source: Sections 408(A), 403, 406.6, 406.5; Appendix I.

5) Contact Information (Local Authority in Charge of STRs)

City of Berea Codes & Planning (STR permitting and enforcement)

• Phone: (859) 986‑8545
• Email: codes@bereaky.gov
• Office: 100 Railway Street, Berea, KY 40403
• Hours: Typically Monday–Friday; verify current schedule

Planning Commission and Board of Adjustment (for CUPs)

• Planning Commission: Nine members; oversees development plans, zone map amendments; conducts public hearings per KRS Chapter 424.
• Board of Adjustment: Five members; hears and decides conditional use permits, variances, and appeals.

State of Kentucky (taxation and transient room tax)

• Kentucky Department of Revenue: For registration and remittance of the transient room tax and related state business tax matters.

Note: Always verify current contact details and procedures directly with the City; some phone/email entries may vary by department or be updated after August 2024.

6) Source Pages and Documents

• City of Berea Land Management and Development Ordinance (adopted Feb 2018; amended Aug 2024) — full ordinance text and appendices: bereaky.gov/wp-content/uploads/2024/08/2018-Land-Management-and-Development-Ordinance-Amended-AUG-2024.pdf

Additional context (see the ordinance for official versions):

• Appendix H — Development plan checklists and certificates (for projects requiring such review)
• Appendix I — Fee schedule (Conditional Use Permits and related City fees)

If you need help determining which zoning applies to a specific parcel or whether your STR concept fits by right versus a CUP, request a pre‑application conference with the Codes & Planning Office.