Overview: Are Short-Term Rentals Allowed in Bonne Terre, MO?

Yes, short-term rentals are allowed in Bonne Terre, Missouri. However, as of July 2022, the city was in the process of developing specific regulations for vacation rentals. The Bonne Terre City Council discussed implementing rules for residential bed-and-breakfast establishments and short-term rentals, recognizing the growing interest from residents and the economic potential demonstrated during local tournaments that brought visitors seeking vacation rental accommodations.

How to Start a Short-Term Rental Business in Bonne Terre

Initial Steps for Market Entry

1. Research Current Regulations: Contact the City Administrator's office to determine if specific STR regulations have been enacted since 2022
2. Property Assessment: Ensure your property meets basic safety and zoning requirements
3. Business Planning: Develop a comprehensive business plan that accounts for:
   • Seasonal demand fluctuations
   • Competition from existing hotels and B&Bs
   • Regulatory compliance costs
   • Insurance and liability considerations

Market Considerations

Based on local discussions, Bonne Terre's tourism appears to be driven by:

• Youth sports tournaments (particularly baseball)
• Regional visitors seeking alternative accommodations to traditional hotels
• Growing interest in personalized, homey rental experiences

Required Documents, Permits, and Licenses

Pending Regulatory Framework

The City Council directed City Attorney Seth Pegram to investigate requirements for:

• Licensing: Separate permits for different rental types (hotels, B&Bs, short-term rentals)
• Tax Collection: Hotel tax rates that differ from standard property tax assessments
• Insurance Requirements: Liability coverage specific to commercial rental operations

Existing Requirements

For properties within Terre Du Lac Association (if applicable):

• Occupancy Permit: Required for all new renters ($50 fee)
• Property Owner Responsibility: Must obtain permits for new or changing rentals
• Rental Restrictions: Limited to ingress/egress only; no common area access for renters

Recommended Documentation

• Property Insurance: Commercial liability coverage
• Business License: General business operation permit
• Sales Tax Registration: Missouri Department of Revenue
• Fire Safety Inspection: Annual inspection requirements (similar to Hermann model mentioned)

Specific Regulations by Jurisdiction

City of Bonne Terre (Pending/Future Implementation)

Based on 2022 council discussions, future regulations may include:

Operational Standards:

• Maximum occupancy limits (referencing fire safety concerns)
• Parking restrictions for guest vehicles
• Noise and behavior management protocols

Financial Requirements:

• Hotel tax collection and remittance
• Quarterly tax payments based on rental income
• Permit fees and renewal requirements

Safety and Compliance:

• Annual inspection requirements
• Insurance verification
• Emergency contact information posting

St. Francois County

No specific county-level short-term rental regulations were identified in the provided content. County regulations would likely apply to properties outside city limits.

State of Missouri

Missouri state law provides the foundational framework:

• Sales Tax: Short-term rentals are subject to state sales tax (4.225% state rate plus local options)
• Hotel/Motel Tax: Additional transient guest taxes may apply
• Business Registration: Required for commercial rental operations
• Zoning Compliance: Properties must conform to local zoning classifications

Terre Du Lac Association (If Applicable)

Rental Property Code (Title XII):

• Annual occupancy permit required ($50)
• Property owner responsible for compliance
• Renters prohibited from using common areas, lakes, beaches
• Separate sticker system for rental properties

Enforcement: Civil penalties for violations, potential suspension of community privileges

Contact Information

Primary Local Authority

Bonne Terre City Hall

• Address: Bonne Terre, Missouri 63628
• Key Personnel:
  • City Administrator Shawn Kay
  • City Attorney Seth Pegram
  • Parks Director/Building Inspector Kenny Farkas

Supporting Agencies

Terre Du Lac Association (if property is within development)

• Address: 111 Rue Terre Bonne, Bonne Terre, Missouri 63628
• Website: www.terredulacassn.org
• Phone: Contact through association office
• Regulations: Available for $10 copy fee

State Agencies

Missouri Department of Revenue

• Sales Tax Registration: Required for rental income collection
• Hotel/Motel Tax: State compliance requirements

Important Considerations for STR Investors

Regulatory Risk

• Bonne Terre was actively developing STR regulations as of 2022
• Monitor city council meetings and ordinance updates
• Regulations may include restrictive provisions based on safety concerns raised

Market Dynamics

• Competition from existing commercial accommodations
• Seasonal demand patterns driven by youth sports and regional tourism
• Growing market interest in alternative accommodations

Compliance Costs

• Permit and licensing fees (amounts to be determined)
• Annual inspection costs
• Insurance requirements exceeding standard property coverage
• Tax collection and remittance obligations

Source References

• Daily Journal Online: "Bonne Terre council takes up vacation rentals" (July 20, 2022) - dailyjournalonline.com/2022/07/20/bonne-terre-council-takes-up-vacation-rentals/
• Terre Du Lac Association: Rules and Regulations (Current) - www.terredulacassn.org/uploads/1/3/3/8/133864393/tdl_rules___regulations.pdf

Investment Advisory: Given the regulatory development process underway in Bonne Terre, potential STR investors should maintain regular contact with city officials and monitor ordinance developments. The city's proactive approach to regulation suggests ongoing oversight that could significantly impact operational requirements and costs. Consider engaging with local tourism boards and economic development agencies to understand the broader strategic vision for short-term accommodations in the community.