With the profitability of short term rentals coupled with rising home prices, interest in converting all or a portion of a property into a STR has grabbed the attention of homeowners and investors alike.
Cities are grappling with how to create regulations to govern STR activity to help create policies to protect residential neighborhoods from becoming ghost towns of vacation rentals. Bozeman is certainly experiencing this growing pain.
Short term rentals are only allowed in some zoning districts in the city of Bozeman. Type I STR are allowed in all districts, Type 2 are allowed in all but RS and R1, and Type 3 are not allowed in residential districts. You can find out what a property is zoned on the City of Bozeman Short Term Rentals GIS Map – link here.
The distinctions between different types of STR are below:
- Type-1: A short term rental of one or more bedrooms in an owner-occupied dwelling while the owner is occupying the same dwelling unit for the entire rental period.
- A short term rental of an owner-occupied dwelling if the owner is not occupying the dwelling during the entire rental period.
- A short term rental of a permitted accessory dwelling unit (ADU) whether or not the ADU’s owner is present in the primary dwelling unit during the rental period.
- A short term rental of one dwelling unit within a duplex whether or not the duplex’s owner is present in the duplex’s other dwelling unit during the rental period.
- Type-3: A short term rental that is not owner-occupied.
Understanding a property’s zoning and the type of STR that is allowed in that zoning is a critical step for homeowners and buyers to understand and ensure that the zoning allows for their intended use of the property.
Keep in mind that covenants of a subdivision may disallow STR, even if City zoning allows for this use so check covenants closely. It’s possible that the City may change zoning in the future so contacting the City Planning Department can also be a good step in understanding any pending changes to policies.
You can find more information on City of Bozeman short term rental regulations at:
If you are considering purchasing either a primary residence or an investment property, having a skilled agent to help you navigate the myriad of market dynamics can help you achieve your goals. Let our seasoned Hart Team help you. Call us at 406-570-5730.