Short-term rental licensing in Indianapolis

Operating a short-term rental (STR) in Indianapolis requires understanding and adhering to specific local regulations. The city has implemented guidelines to balance the benefits of vacation rentals with the needs of residential neighborhoods. This guide covers the essential steps to legally operate a short-term rental in Indianapolis.

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Types of Short-Term Rental Licenses in Indianapolis

1. Owner-Occupied Short-Term Rental License

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• For properties where the owner resides on-site.

• Allows rental of rooms or units within the primary residence.

• Subject to occupancy and zoning regulations.

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2. Non-Owner-Occupied Short-Term Rental License

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• For properties not occupied by the owner.

• Typically applies to investment or vacation homes.

• Must comply with stricter safety and zoning rules.

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Key Requirements for STR Licensing

1. Zoning Compliance

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• Verify your property’s zoning classification through the City of Indianapolis Zoning Map.

• Ensure that the property is in a zone that permits short-term rentals.

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2. Proof of Ownership or Lease Agreement

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• Owners must provide proof of ownership.

• Renters must submit a notarized letter from the property owner granting permission to operate an STR.

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3. Neighbor Notification

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• Notify neighboring property owners about your intent to operate a short-term rental.

• Include contact information for complaints or concerns.

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4. Occupancy Limits

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• Maximum occupancy is typically two guests per bedroom plus two additional guests.

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5. Safety and Health Standards

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• Install smoke and carbon monoxide detectors.

• Provide fire extinguishers in accessible locations.

• Adhere to sanitation and maintenance requirements.

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6. Local Contact Requirement

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• Designate a local contact person available 24/7 to address complaints or emergencies.

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Application Process for STR License

Step 1: Register with the City

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• Apply through the Indianapolis Business Services Portal to begin the licensing process.

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Step 2: Submit Required Documents

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• Proof of ownership or lease.

• Floor plans and property photos.

• Neighbor notification proof.

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Step 3: Pay Licensing Fees

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• Fees vary by license type:

  • Owner-Occupied: $100 annually

  • Non-Owner-Occupied: $200 annually

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Step 4: Inspection and Approval

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• Schedule a property inspection to ensure compliance with health and safety codes.

• Once approved, receive your STR license number, which must be displayed on all listings.

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Penalties for Non-Compliance

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Failure to comply with Indianapolis STR regulations can result in:

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• Fines: Up to $2,500 per violation.

• License Revocation: For repeated or severe violations.

• Legal Action: Potential legal proceedings for ongoing non-compliance.

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How Lodge Compliance Can Help

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Lodge Compliance simplifies the licensing process for vacation rental owners in Indianapolis by providing:

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• License Application Assistance: Navigate the application process smoothly.

• Compliance Monitoring: Stay updated on local law changes.

• Operational Support: Implement safety and health standards for full compliance.

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Ready to operate your short-term rental legally in Indianapolis? Request a Demo to learn how Lodge Compliance can help streamline your licensing and compliance processes.

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Stay Compliant and Maximize Your Rental Potential

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Operating a short-term rental in Indianapolis offers significant income potential, but compliance is crucial. By following city regulations and maintaining high operational standards, you can build a successful and legally compliant rental business.