The Gary City Council has passed an ordinance to regulate short-term rentals. City officials say renting out properties on Airbnb, Vrbo or other platforms is a growing business, with many listings clustered around the Miller Beach area.
Council President William Godwin called the ordinance a compromise, based on what the city is allowed to do. "It's a work in progress, and we're going to learn things and there's things that we don't anticipate now that will arise," Godwin said during Tuesday's meeting. "And . . . if I'm on the council, whenever there's a problem, I'll be the first to propose an amendment to the ordinance to make it better."
Starting June 30, those looking to rent out their properties for less than 30 days will have to get a permit, pay a one-time $150 fee and have a city business license. Short-term rentals of non-owner-occupied properties will also require a special use variance to be in place by the end of the year. Those found to be in violation would face a Class C infraction, and those who repeatedly violate noise, parking or nuisance ordinances could have their license revoked.
Some council members said they'd like to charge a yearly fee, but that's currently prohibited under Indiana Code. Council member Darren Washington called on lawmakers to change that, to help cover costs in the city's building department.
"People are getting properties, coming into our community, renting these out, don't live here. And they have to pay one time, and then they continue to make a killing, as far as financially," Washington said.
