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HomeMy WebLinkAboutShort-Term Rental FAQ Oct. 2026City of South Bend SHORT-TERM RENTALS Community Investment Frequently Asked Questions This FAQ explains South Bend's Short-Term Rental (STR) permitting, zoning, compliance, and enforcement program. Summary Short-Term Rentals Are Allowed — But They Are Regulated x Indiana law limits the city's ability to regulate Short-Term Rentals. South Bend cannot simply prohibit STRs that state law protects. x Within those limits, the city has established the strongest local regulatory framework available under state law. x Every STR requires a city permit. x Owner-occupied STR: Allowed by right when requirements are met + STR permit required. x Existing non-owner-occupied STR: Must establish legal nonconforming status + STR permit required. x New non-owner-occupied STR: Requires a Special Exception + STR permit required. x The initial permit fee is $150 per property. Permits must be renewed annually, but there is no renewal fee. x Licensing, Zoning, Neighborhood Services, and Police work together to address violations and resident concerns. x Residents can use 311 to report suspected unpermitted STRs, nuisances, property- maintenance concerns, or other problems. See an STR? Have a concern? Check with the city to see whether the property has an active permit. If you believe an STR is violating city requirements, contact 311 or email Community Investment at shorttermrentals@southbendin.gov. You do not need to determine whether the issue belongs to Licensing, Zoning, Neighborhood Services & Enforcement, or Police. City staff will route the complaint to the appropriate department and coordinate the response. City of South Bend Community Investment All Short-Term Rentals require a city permit. The city has established three pathways for STRs to operate: 1.Owner-occupied STR — allowed by right when the applicable requirements are met, with an STR permit required. 2.Non-owner-occupied legal nonconforming STR — an existing STR that can establish qualifying prior operation or advertising, with a Certificate of Legal Non-Conformance and an STR permit required. 3.New non-owner-occupied STR — requires a Special Exception and an STR permit. The city's program is designed around the regulatory tools available under Indiana Code Chapter 36-1-24 (https://iga.in.gov/laws/2025/ic/titles/36#36-1-24). State law provides that an owner- occupied STR is a permitted residential use in a residential zoning district and may not be prohibited by local zoning regulations. Within those limitations, South Bend has established a permitting, zoning, compliance, and enforcement framework intended to provide the strongest local oversight available under state law. Why is the City permitting Short-Term Rentals? Short-term rentals provide temporary (less than 30 days) lodging throughout the city and can provide a source of secondary income for property owners. At the same time, short-term rentals can sometimes create nuisances that negatively affect neighboring properties and neighborhoods. The city wants to be able to identify and contact STR owners when problems occur, inform owners about nuisance activity, promote responsible property management, and deter poorly maintained or poorly managed short-term rentals. The goal is to allow responsible short-term rental activity while protecting neighborhood quality of life. Why doesn't the City simply prohibit Short-Term Rentals? Indiana law limits what cities can do to regulate short-term rentals. Indiana Code Chapter 36-1-24 (https://iga.in.gov/laws/2025/ic/titles/36#36-1-24) establishes a statewide framework governing local regulation of short-term rentals. Among other things, the law provides that an owner-occupied STR is a permitted residential use in a residential zoning district and may not be prohibited by local zoning regulations. For non-owner-occupied STRs, state law allows a municipality to require a special exception, special use, or zoning variance, but prohibits the city from applying those processes in a manner intended to prohibit or unreasonably restrict STRs. City of South Bend Community Investment Within these state-law limitations, South Bend has adopted a comprehensive STR permitting and zoning program that uses the regulatory tools available to the city to the fullest extent permitted by Indiana law. The city's approach is therefore not a decision to allow STRs without regulation. It is an effort to establish the strongest enforceable local framework available under state law. What does the City's STR program accomplish? The city's program is designed to: x Require every STR to obtain a city permit; x Establish clear eligibility requirements; x Verify ownership and, where applicable, owner occupancy; x Identify existing non-owner-occupied STRs that qualify as legal nonconforming uses; x Require new non-owner-occupied STRs to go through the city's special exception process; x Provide the city with an owner or responsible party to contact when problems occur; x Create a mechanism for addressing nuisance and property-maintenance concerns; x Allow the city to revoke permits when the ordinance's enforcement threshold is met; and x Establish penalties for operating an STR without a required permit. Indiana law expressly authorizes municipalities to require permits for STR properties. The city's objective is responsible STR operation — not unregulated STR operation. What is considered a Short-Term Rental? A short-term rental is a property that provides temporary lodging in a dwelling for less than thirty (30) days at a time. STRs may be advertised through a short-term rental platform or through other means. All short-term rentals, regardless of the number of days it is used as a STR each year, require an active city STR permit while operating. Who can apply for an STR permit? A permit application must be made by the property owner.An owner must submit a permit application for each property for which a permit is sought. If the owner is a corporation, partnership, or other legal entity, the application must be made by an officer or authorized agent of the owner. Indiana law specifically authorizes a municipality to require an owner to obtain a permit for each property. City of South Bend Community Investment Permit Fee and Renewal? The initial permit fee is $150 per property. This is a one-time permit fee and must be paid before the permit is issued. The STR permit lasts for one year and expires on November 1 each year. To renew, complete the city's STR permit renewal form. There is no renewal fee. A permit may lapse and be renewed at any time at no cost to the property owner. However, the permit must be active while operating a short-term rental. What happens to the permit if I sell my property? If the property changes ownership, the existing permit ceases. The new owner must obtain a new STR permit for the property to continue operating as a short-term rental. The new owner must qualify under one of the city's three STR pathways. The Three Ways an STR Can Operate: Because state law establishes different treatment for owner-occupied versus non-owner- occupied STRs, South Bend's program has three pathways. 1. Owner-Occupied If you own and live in the property, the STR is allowed by right when the property qualifies under the applicable requirements. You still need a City STR permit. State law requires owner-occupied STRs to be treated as a permitted residential use in residential zoning districts. South Bend therefore cannot use its zoning ordinance to prohibit a qualifying owner-occupied STR, but the city can require the STR to obtain a permit under the statutory framework. 2. Non-Owner-Occupied but Legal Nonconforming If you do not live on the property but can establish that the property was already being actively used or advertised as an STR before the ordinance was adopted, you may qualify for legal nonconforming status. You must: 1. Provide evidence of the prior STR use or advertising; 2. Obtain a Certificate of Legal Non-Conformance from Zoning; and 3. Obtain the required city STR permit. City of South Bend Community Investment Legal nonconforming status does not eliminate the permit requirement. The legal nonconformity continues so long as the qualifying use continues. 3. New Non-Owner-Occupied If you do not live on the property and the property was not previously operating or being advertised as an STR, you are a new non-owner-occupied STR. You must obtain a Special Exception for the use of Short-Term Rental and an STR permit. State law specifically allows local governments to require a special exception for non-owner- occupied STRs, while also limiting the city from using the process to intentionally prohibit or unreasonably restrict STRs. Why can't the City make all STRs go through a Special Exception? State law does not allow the city to require special exceptions for owner-occupied STRs. State law provides that an owner-occupied STR is a permitted residential use and may not be disallowed by local zoning regulations in a district that permits residential use. For non-owner-occupied STRs, however, state law expressly allows the city to require a special exception, special use, or zoning variance, subject to statutory limitations. South Bend is using that distinction in its regulatory framework. Why does the City require a permit if state law protects STRs? The State's law does not prohibit local STR permitting. Indiana Code 36-1-24-11 expressly allows a municipality to require an owner to obtain a permit for each STR property. The permit gives the city an important administrative and enforcement tool. It allows the city to know: x Where STRs are operating; x Who owns the property; x Who is responsible for the property; x How the STR is being marketed; x What type of dwelling is being rented; and x How to contact the responsible party when concerns arise. The permit is therefore a central part of the city's ability to regulate STRs within the limits established by state law. City of South Bend Community Investment Why does the City require proof of ownership and occupancy? The city needs to determine which regulatory pathway applies to each property. For an owner-occupied STR, the city must be able to verify the following during the application process: x The applicant is the property owner; and that the property serves as their primary residence. This allows the city to distinguish an owner-occupied STR from a non-owner-occupied STR. A homestead deduction is a common way the city can confirm ownership and primary residency. Without a homestead deduction, primary residency of a property can be confirmed through a valid driver’s license where the name and address match the application information. What happens if I operate without a permit? Operating an STR without a required permit is a violation of the city's ordinance and may result in citations and financial penalties. Indiana law specifically establishes operating an STR without a required permit as a Class C infraction, with each STR transaction conducted without a permit constituting a separate violation. The city intends to enforce the permit requirement. Can the City revoke an STR permit? Yes. If a permitted property receives three ordinance citations within a calendar year, the permit may be revoked, subject to the required notice and hearing process. This gives the city an important enforcement mechanism for properties that repeatedly violate applicable requirements. If a permit is revoked, the owner may apply for a new permit after one year, subject to the applicable requirements. Who is responsible for enforcing the Short-Term Rental ordinance? Enforcement is a joint effort among Licensing, Zoning, Neighborhood Services & Enforcement, and the South Bend Police Department. Each of these four city departments has a different role, but the city will coordinate its response rather than requiring residents to determine which department has jurisdiction. 1. Licensing – manages the permit process. Licensing is responsible for administering the STR permit program, including: x Processing STR permit applications; x Maintaining permit records; City of South Bend Community Investment x Verifying required information; x Issuing and renewing permits; x Tracking permit status; x Identifying properties operating without a required permit; and x Initiating or coordinating enforcement when permit-related violations are identified. Indiana law expressly authorizes municipalities to require an STR permit for each property. 2. Zoning – manages the legal use of a property as an STR. Zoning is responsible for determining whether the STR use is authorized under the applicable zoning pathway. This includes: x Determining whether a property qualifies for the owner-occupied pathway; x Reviewing claims of legal nonconforming STR use; x Issuing Certificates of Legal Non-Conformance when the requirements are met; x Administering the Special Exception process for new non-owner-occupied STRs; and x Enforcing applicable zoning violations. South Bend's Zoning office administers the city's Zoning Ordinance and Board of Zoning Appeals processes. 3. Neighborhood Services & Enforcement – inspects 311 nuisance property complaints. Neighborhood Services and Enforcement (NSE) serves the public by protecting the health, safety, and environmental stability of South Bend's neighborhoods. They enforce municipal codes related to tall grass, litter, abandoned vehicles, snow removal, structure violations, and certain zoning violations. Inspectors respond to citizen complaints and identify violations within city limits, includingshort-term rentals. NSE also enforces zoning violations mainly related to lawn parking and oversized/recreational vehicle parking. If you have a non-emergency complaint regarding a short-term rental property, please contact 311. 4. Police Department – responds to 911 related complaints. The South Bend Police Department may become involved when a STR-related situation involves a police matter, public safety concern, criminal activity, or an issue requiring police response. The STR program does not replace normal police response. Residents should continue to contact the Police Department for emergencies or matters requiring immediate police assistance. How does this work together? A single STR property enforcement may involve more than one city department. City of South Bend Community Investment For example: A resident reports that a neighboring property appears to be operating as an STR and is also generating repeated noise and nuisance complaints. Licensing can determine whether the property has an active STR permit. Zoning can determine whether the property's STR use is authorized. Neighborhood Services & Enforcement can address applicable property or code violations, and Police can respond to matters requiring police intervention. Residents do not need to determine which department is responsible. For nonemergency matters, start with 311 and provide the property address and details of the concern. The city will route the issue to the appropriate department or departments. This coordinated approach is consistent with the city's authority under Indiana law, which permits local regulation and enforcement of STRs for specified purposes including public health and safety, noise, property maintenance, nuisance issues, and emergency contact information. How will I know if my neighbor's property is being used as a Short-Term Rental? The information collected during the permit application process is done to support identification and registry of short-term rental properties within the city of South Bend. The city has a responsibility to protect both the safety of residents and the privacy of property owners. Staff can assist with simple inquiries regarding whether a property has a valid short-term rental permit. However, property contacts or application information will need to be obtained through an Access to Public Records Request. What if the property has a permit but it is causing problems? A permit does not give an STR owner permission to violate other city ordinances. Residents should report applicable non-emergency problems through 311. Depending on the nature of the complaint, Licensing, Zoning, Neighborhood Services & Enforcement, and/or Police may become involved. The city's goal is not simply to identify permitted STRs—it is to ensure that permitted STRs operate responsibly, and that violations are addressed.