North Kentucky News

The City of Covington has streamlined the process for obtaining a license to rent out a house for overnight stays. The new regulations for short-term rentals or vacation rentals, commonly known by their Airbnb and Vrbo platforms, follow the regulatory framework adopted last year.

Designed to manage the proliferation of short-term rentals, protect the residential character of Covington neighborhoods, and preserve housing affordability for long-term residents, the first phase of regulations included a new licensing structure, caps on licenses, and penalties for violations.

The recent changes passed by the Covington Board of Commissioners aim to simplify the application process for property owners. The modifications also restructure fees and adjust previous caps on the number of short-term rentals in various neighborhoods.

“We said all along that our regulations of short-term rentals would be a balancing act, and – just like we promised – we are making it easier for property owners who abide by the rules to create businesses and make money,” Mayor Joe Meyer stated.

The amendments were made in two ordinances: an amended Chapter 127 of the Covington Code of Ordinances and an amended Chapter 158 of the City’s Neighborhood Development Code (zoning).

One significant change is in zoning non-host-occupied short-term rentals as “limited use” instead of “conditional use” in six zoning districts: suburban residential, semi-urban, downtown core, traditional urban mixed-use, traditional urban residential, and auto urban commercial. This alteration shifts decision-making from requiring a lengthy application process before the City’s Board of Architectural Review and Development (B.O.A.R.D.) to being handled by City staff. The previous process could take months; now it could take as little as a week.

The new rules also expand scenarios under which neighbors can appeal license grants. Additionally, neighbors can report nuisances once a rental is operational. Properties causing issues with noise or trash can have their licenses revoked by the City’s Code Enforcement Division.

Regarding costs, applicants will pay an $80 change-of-use application fee instead of a $600 hearing fee before B.O.A.R.D. The rental license fee will increase from $30 to $500 annually (only payable upon receiving a license). Renewing this annual license will cost $250. Re-inspections due to failed initial inspections will cost $100.

Chapter 127 adjustments also refine density limits for non-host-occupied short-term rental licenses across Covington using historic district boundaries combined with neighborhood boundaries. This ensures equitable distribution throughout the city with a collective total limit set at 151 citywide properties.

For more information about Covington’s rental license program and requirements or its regulation history on vacation rentals visit their respective portals.