began discussing the short-term rental policy <\/a>in February, several commissioners made it clear they want short-term rentals to be a tool for residents, but not overrun by outside investors or corporations. To combat this, Justin Ping, a planning commission member who spoke on the group\u2019s behalf at the March meeting, urged councilors to pursue a more \u201caggressive model of short-term rental regulation.\u201d<\/p>\nThe commission asserted \u201cprimary homeowners\u201d could be easily defined using the state\u2019s new tax code, which defines primary homeownership as living at the residence for at least seven months of the year, Ping had said. Under the policy, those who are currently managing short-term rentals but may not fit the primary homeowner definition wouldn\u2019t lose their ability to continue operations, saying current permits would be grandfathered in until ownership of the property is transferred.\u00a0<\/p>\n
The planning commission\u2019s tweaked framework was largely based on the city of Bozeman. Bozeman city commissioners in October 2023 banned new permits for \u201cType 3\u201d short-term rentals \u2014 units where the owner doesn\u2019t live on-site at the residence at all \u2014 and agreed to grandfather in currently permitted Type 3 short-term rental units.<\/p>\n
After the March 16 meeting, City Manager Eric Hanks met with Bozeman\u2019s community development director to discuss the city\u2019s pathway to their current short-term rental policy, as well as the opportunities, challenges and ongoing results of the policy, he told councilors on Monday.<\/p>\n
\u201cThey shared that it was an extensive one-year process of public meetings, and they did an economic analysis of the impacts of that before changing that policy,\u201d Hanks said. \u201cAs with most city short-term rental programs, they continue to struggle with enforcement and the complexities of a very complex regulation of how to enforce that and follow up with individual property owners.\u201d<\/p>\n
![\"\"](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/04\/190621_NEW_HOMES_034-2-1200x800.jpg\")
A development of new homes on Wildcat Drive in Columbia Falls on June 21, 2019. Hunter D\u2019Antuono | Flathead Beacon<\/p>\n
Councilors at Monday night\u2019s meeting were largely on the same page about moving forward with city staff\u2019s policy framework proposal and nixing the owner-occupied requirement, at least for this first iteration of the policy.\u00a0<\/p>\n
\u201cI think we\u2019re doing the right things; slow and steady,\u201d Councilor John Piper said. \u201cI think we\u2019re on the right track.\u201d<\/p>\n
Councilor Kathy Price added that she didn\u2019t feel comfortable \u201ctelling property owners what they can and can\u2019t do with one property, two properties or three,\u201d she said.<\/p>\n
\u201cIf we permit them and they follow all the rules with fire inspection and everything according to putting everything on the [hosting] platform, then we don\u2019t have the right to tell them they can\u2019t get a permit,\u201d Price said. \u201cIf we set our rules to be these, and they follow those rules, it\u2019s my belief that they should be permitted within our city jurisdiction.<\/p>\n
\u201cI feel that people should have the right to do what they need to to make a living, but according to our rules.\u201d<\/p>\n
Like at last month\u2019s meeting, Councilor Marijke Stob again voiced support for the planning commission\u2019s proposal for limiting future short-term rental applications to property owners with primary residences in Columbia Falls. Stob urged other councilors to consider residents facing housing challenges due to the influx of short-term rentals as the council moves through the policy process over the course of the year.\u00a0<\/p>\n
\u201cWe can look at other cities that are gateway towns to see how short-term rentals have made them ghost towns or just shells of towns or there\u2019s nobody living in the neighborhood because they\u2019re all short-term rentals,\u201d Stob said. \u201cI was talking to people who have short-term rentals and the economic benefit is great for them, but also, I hear from people who don\u2019t have housing and get kicked out of their houses because they\u2019re changed into short-term rentals.\u00a0<\/p>\n
\u201cIf we don\u2019t regulate it, it could make our town an empty town because we\u2019ve seen it happen in other towns.\u201d<\/p>\n
Once the policy is formally adopted later in the year, Hanks told councilors the city plans to collect data and do analysis on its impacts, then revisit the discussion in about a year to have additional conversations about the policy.<\/p>\n
The city this month contracted with Deckard Technologies for assistance with short-term rental compliance and data collection, with full implementation of the program expected to take effect in the next 45-60 days. The software helps cities identify short-term rental listings, track compliance, and collect extensive data on metrics such as occupancy rates, revenue generation and owner\/non-owner occupied, according to city documents.\u00a0<\/p>\n
Mayor Donald Barnhart said the software program will be a key resource for the city moving forward to nail down accurate data on short-term rentals, especially regarding the issue of owner-occupied units.<\/p>\n
\u201cI don\u2019t think that at this time we have the right to fulfill that sort of a restriction,\u201d Barnhart said.<\/p>\n
With the go-ahead from the city council, the city staff will now work to implement the short-term rental framework with the city\u2019s new land use plan and zoning map that will be developed through the Montana Land Use Planning Act (MLUPA) requirements.\u00a0<\/p>\n
The short-term rental policy framework is set to formally come before the city council for approval when the MLUPA zoning code updates are presented in June, according to city documents. If approved, the new short-term rental permit system fees are expected to take effect in January 2027.<\/p>\n
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