COVINGTON, Ky. – The city of Covington is collecting feedback on proposed regulations for short-term rental units, after previously finding many people operating these units were doing so illegally.

What You Need To Know

  • Covington is proposing new regulations for short-term rental units like Airbnb

  • The city previously found many people were operating short-term rentals illegally

  • The new regulations include capping the number of licenses the city would issue

  • One Covington couple that previously expressed frustration about how the city was handling short-term rentals is mostly in agreement with the new regulations

One couple says they’re happy with the rules the city is proposing, but they’re not sure others will be.

Chachi and Charlene Echerivel are feeling some relief, not that they were sweating too much to begin with. They’ve been successful in renting out the space above their detached garage as an Airbnb for periods of time at least a month long. But after seeing Covington’s proposed new rules for short-term rentals, they could soon have a lot more flexibility to rent out for shorter stays.

“I really felt like they actually listened to what people said, and responded,” Charlene said.

They use the income from their rental to help fund the rehab of their own home.

“Every dollar is needed to rehab this house. We rehabbed that first, and they’re living well. We’re getting by,” Chachi said, laughing. “We’re hoping to live as well as our renters one day.”

In April, the Echerivels were among many Covington residents to voice their frustration about a moratorium the city placed on issuing new short-term rental licenses at a public meeting.

There were some heated arguments.

“I feel like the temperature is starting to get cooler. But the damage was already done, man. Unless they give them their money back that they were taking for fees,” Chachi said. “Is the temperature cooler? I don’t think it’s cold yet, but they’re at least starting to turn the valves.”

While they’ve been able to pivot to longer term rentals, the Echerivels said they know other operators who’ve had to abandon their plans completely.

“They’ve lost some income, because you can make a lot more renting one week at a time than you can one month at a time,” Charlene said.

Covington started regulating short-term rentals in 2020 by requiring a license and zoning approval. The city says the software it began using a few months ago showed hundreds of property owners were renting their units illegally and under the radar.

Neighbors, some of whom attended that meeting in April, complained about late-hour noise, trash and parking. This all led to the moratorium, and to the city seeking input as it considers these new regulations.

According to the city, those include:

  • Streamline the process for obtaining a short-term rental license, a move that will require changes to the Neighborhood Development Code that regulates zoning. During the transition period, the City will process applications. 
  • Require a license for every unit and before a unit can be advertised or rented.
  • Separate short-term rentals into host-occupied and non-host-occupied units.
  • Cap the number of non-host-occupied licenses at 150 for the entire city with specific caps in historic districts.
  • Do not cap the number of host-occupied licenses either citywide or in specific historic districts.
  • Set limits on the number of licenses that a person can obtain.
  • Set penalties for operating without a license, including a one-year ban on applying for a license and increased application fees.
  • Require a local agent to increase responsiveness to concerns.
  • “Grandfather in” existing licenses and permit their renewal.
  • Set a “three-strike rule” for code violations.
  • Create a Rental License Appeal Board to hear appeals of violations.

In regard to the license caps, Chachi said, “They could’ve said any number, and I just still wouldn’t have known. They could’ve thrown out a huge number, and I’d be like, ‘maybe that’s too much?’ I don’t know.”

“We know these changes are not going to satisfy everybody completely but we’ve worked hard to find a balance between competing interests,” said Brandon Holmes, Covington’s Neighborhood Services Director, in a news release. “On their face, short-term rentals are a good thing that bring visitors to Covington and investments in our buildings. But we have to institutionalize safeguards and limits that protect renters and their neighbors while also preserving the residential character of the communities in which they operate.”

The Echerivels said they like that the proposed rules don’t cap the number of host-occupied licenses for people like them, and in their opinion are trying to accommodate those trying to do things the right way.

Covington is collecting feedback on the proposed new regulations in two ways:

One, detailed feedback can be given by submitting comments in writing using this short-term rental comment form.

Two, brief comments can be given in person at a special meeting of the Covington Board of Commissioners on Thursday, June 15. That meeting will be held 6 p.m.-7:45 p.m. at the Life Learning Center, 20 W. 18th St. To speak, people should sign up on a sheet of paper at the door. Note that to allow the greatest number of people to voice their thoughts, each speaker will be limited to three minutes.

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