Coralville property owners hoping to make a bit of cash and visitors looking for an alternative to hotels might see their options limited following a Tuesday ruling by the Coralville City Council. The move could affect offerings on websites like Airbnb and HomeAway, where, as of Thursday morning, about a dozen locations were listed.
The city council approved an ordinance during its Tuesday meeting to restrict short term rentals, defined as a rental for less than 90 continuous days. Under the new rules, the property must be owner-occupied and the owner must stay onsite while renters are there. Properties are also required to have a rental permit, which involves an annual $50 fee and inspections twice a year.
In an amendment added during the final readings, the city council added a requirement that property owners pay a seven percent state hotel/motel tax for the first 30 days of each stay.
During a previous city council meeting, Coralville City Attorney Kevin Olson noted that under the Iowa state code the city could fine a property owner a maximum fine of $750 for a code violation and an additional $1,000 each day afterwards if the violation continues.