Knowing the rules and regulations for short term rentals can be tricky. Here’s a guide for the Flathead Valley.
Purchasing a property for the purpose of short term rentals can be a smart financial investment. Just be sure to verify it is allowed. You’ll need to check the zoning and the HOA.
If feels like every city in the Flathead has it’s own set of rules on who is and who isn’t allowed to run a short-term rental property.
I dove into the details for Columbia Falls, Whitefish and Kalispell. Feel free to use this as a guide to get you started but call the zoning office and verify the address of the home to be certain it can be used as a short term rental. This information is meant as a starting off point and not legal advice.
The Flathead County GIS System will allow you to look up the zoning of any property. https://maps.flathead.mt.gov/portal/apps/sites/#/applications
A short term rental is the use of a residential dwelling for a period shorter than 30 days.
Flathead County Zoning Regulations (Kalispell)
The following was copied from the Flathead County Zoning page:
https://flathead.mt.gov/department-directory/planning-zoning/short-term-rentals 406-751-8200
WHAT ZONES REQUIRE A PERMIT
There are two sets of regulations that regulate short-term rentals in the county; the Flathead County Zoning Regulations (FCZR) and the Canyon Area Land Use Regulations (CALURS). If the property is located in an unzoned area no permit is required from Planning and Zoning. Within CALURS a short-term rental is considered an exempt use within the Upper Canyon and requires review as a minor land use within the Middle Canyon.
The FCZR requires administrative conditional use permits in all AG, SAG, R, RA, and RC zones, B-3, B-5, B-6, AL, LBL, LL, LS, RL, and WV for the operation of a short-term rental. Short-term rentals are permitted uses in RR, B-2, B-4, BM-1, BM-2, BR-2, BR-4, CVR, SC, and NF. Short-term rentals are not allowed in all other zones.
REVIEW PROCESS
Minor land use review in CALURS takes no more than 30-calender days from the date the application is determined to be complete. Minor land use reviews do not require neighbor notification and the process is entirely administrative.
The administrative conditional use process can take up to a month and a half to complete from the date the application is determined to be complete. After the application is submitted to the Planning and Zoning staff will send agency referrals and notifications to every property owner within 150 feet of the boundary of the property. The comment period lasts for approximately two weeks. At the end of the comment period, staff typically has 10 working days to conditionally approve, approve or deny the request. If concerns are raised during the comment period that needs to be further addressed by the applicant, staff will pause the review period and give the applicant ample time to respond. If the applicant can not adequately address the concerns the file will be scheduled for the next Board of Adjustment meeting for the Board’s consideration.
Hopefully the above information has give you a jumping off point in your search for the perfect short-term rental property that will meet your financial goals.
Be careful what you purchase if you want to rent it as a VRBO. Not all homes will qualify. Always check HOA rules even if the city zoning allows a VRBO the HOA may restrict it.
Columbia Falls
Columbia Falls allows short term rentals in all business zones. This includes CB-1 and CB-2. If your property is zoned in a business zone you do not need to apply for a permit. Any other property within the Columbia Falls zoning will need a conditional use permit to be used as a short term rental property. This includes CRA-1, CR-2, CR-3, CR-4, CR-5, CSAG-10, etc. Any of these will need to apply for a conditional use permit.
Columbia Falls does contain homes that fall out of the zoning districts. They are essentially not zoned and as such you are allowed to run a VRBO property without a permit. Proceed with caution though as in addition to verifying the zoning you will also need to verify with the HOA committee that a short term rental is permitted under HOA regulations. Don’t just assume it’s okay if the property is not zoned as there are neighborhoods that restrict short term renting under their HOA codes.
If you do need to obtain a conditional use permit in Columbia Falls you will need to fill out the application, obtain a health inspection, fire inspection and they will send out a notification to any neighbor within 150 feet of the property in question for comment. The process usually takes less than 3o days. It does not feel like the zoning office is trying to prevent homes from qualifying though they won’t let you go through the process until you are the current owner. If you are purchasing the home strictly to run as a short term rental it feels like there is an element of risk involved as they won’t process the permit in advance of the purchase.
In addition a conditional use permit does not transfer to a new owner at the sale of the home. The new owner will need to apply and obtain a new conditional use permit in their name. This does allow the neighbors to voice concerns if they would like to protest the property continuing its use as a short term rental property. Like I said feels like there’s an element of risk involved.
https://www.cityofcolumbiafalls.org/planning-zoning
WHITEFISH
Short term/vacation rentals are allowed in the following zoning districts in Whitefish. WB-3, WRR-1, WRR-2, WRB-1, WRB-2 Short term rentals are not permitted in any other zoning districts.
If you are purchasing for the intended use of a short term rental pay specific attention to your zoning. Don’t just trust what the listing agent recorded on the MLS. I would verify with the zoning office by calling them directly and giving them the address you intend to purchase. Additionally, check with the HOA in any given neighborhood and verify short term rentals are acceptable.
In addition to having the proper zoning in Whitefish you will also need to register a joint short term rental by completing a short-term rental / business license application with the Whitefish Planning Office. You will also need a fire marshal inspection.
The following was copied and pasted from the city of Whitefish website
https://www.cityofwhitefish.org/DocumentCenter/View/176/Short-Term-or-Vacation-Rentals-PDF
For each rental unit, you must: • Register a joint short term rental and business license application with the Whitefish Planning Office; • Meet off street parking standards; • Report and remit Resort Tax in conformance with the Resort Tax requirements to the City of Whitefish; • Post an emergency contact notice visible from outside the front door with the owner’s name and phone number (or local contact); • Provide proof of application for a State of Montana public accommodation license for a tourist home administered by the Flathead City-County Health Department; • Provide verification the property is appropriately registered and meets requirements for State Bed Tax purposes, administered by the State of Montana Department of Revenue; and • Be inspected by the Fire Marshal to ensure it meets current safety standards once the Planning Department deems the application complete.
Contact the planning Department in Whitefish 406-863-2410 for additional requirements.
A short term rental is often referred to as a VRBO meaning, vacation rentals by owner.
Information compiled by Erin Pollan a real estate agent with Chuck Olson Real Estate. Feel free to call or email me with any questions. 406-407-8600 erin@chuckolsonrealestate.com
Information compiled on March 10, 2023
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