Alabama city approves 190-unit cap on short-term rentals

Madison, Alabama, has never required short-term rentals to get a city permit. That is about to change.

The City Council voted 4-2 on Monday to approve Madison’s first ordinance regulating properties listed on Airbnb, Vrbo and other rental platforms.

The new rules cap the market at 190 permitted units, equal to about 0.75 percent of the city’s housing supply.

That ceiling leaves room for some growth.

City estimates have placed the number of short-term rentals already operating in Madison between 60 and 150, according to reporting from WAFF and AL.com.

At a June 22 hearing both operators and those who oppose STRs showed up to share their concerns.

Meanwhile,  Council Vice President Maura Wroblewski said this was the “most difficult” topic in her 10 years on the council.

 District Two Councilman David Bier said, “This case has been one of the most difficult decisions that City Council has had to make,” he said. “We have heard for months, folks on both sides of the issue, why they support it and why they oppose it. What we find is clear, is there is a market demand for this,” per local CBS outlet “WHNT 19 News.”

Madison Host Mary Howard said she has never had an issue with renters throwing parties.

“I think parties are much more rare than most of us think,” Howard said. “We local owners have good relationships with our neighbors, and we want to keep it that way.”

Madison adds permits, inspections and a $350 fee

Under the city’s new rules, permits will be issued on a first-come, first-served basis.

Each property will need its own short-term rental permit, certificate of occupancy and $350 nonrefundable application fee, while owners will also need a city business license.

Rentals already operating when the ordinance takes effect will have 90 days to apply.

Applications must include a floor plan, parking layout, and proof of at least $1 million in liability coverage.

The ordinance also bans parties, concerts, weddings and other large gatherings, building on the kind of party restrictions appearing in other vacation rental markets.

Every rental must have a local contact available around the clock who can respond to the property within 30 minutes after being notified of a complaint or violation.

Adjacent property owners must also receive written notice with the rental’s address, occupancy limit and contact information.

Related: Arkansas city moves to regulate short-term rental properties

Enforcement escalates with repeated complaints. Three substantiated complaints within 12 months can bring a suspension of at least six months. A second suspension within two years lasts at least one year, while a third within three years can permanently revoke the permit.

The vote leaves Birmingham as the only city among Alabama’s 10 largest without a dedicated short-term rental framework, according to the local outlet.