LEXINGTON, Ky. (WKYT) – An Airbnb lobbyist met before the Interim Joint Committee on Local Government on Tuesday, pushing for new legislation in the upcoming General Assembly.

The short-term rental company introduced two bills: one that would hamper local governments’ ability to regulate rentals and another that would give tenants the right to rent spaces with their landlord’s permission.

Jason Underwood began by detailing how short-term renters have affected Kentucky over the past year.

“They paid about $14 million in local taxes, so the overall impact is about $606 million — just for that platform,” Underwood said.

He also highlighted how rentals support other industries in the state.

“Short-term rentals are essential to the Kentucky Bourbon Trail,” Underwood said. “Those who want to stay closer to the trail don’t have many options.”

So, Underwood intends to work with lawmakers on a bill to ban conditional use permits, which is what Lexington, Louisville and Frankfort use to regulate non-hosted short-term rentals.

“Conditional use permits are a zoning tool used by localities typically for gentlemen’s clubs, bars, gas stations, cigar stores,” Underwood said, referring to things that would not be desirable in a residential area. “But they are increasingly used in private residences.”

Underwood says zoning regulations create barriers for people wanting to rent properties, stifling growth. But opponents we spoke with say it’s not right for these unhosted rentals to be run like businesses in residential areas.

“For years it was a very mixed-use community, but those businesses tended to benefit the neighborhood,” said Kaye Myers, who lives in Lexington’s Kenwick neighborhood. “STRs benefit someone from out of town or state who has no vested interest.”

Myers and other neighborhood members say rentals have become far too prevalent, noting that there are 41 properties between Kenwick and the neighboring Mentelle neighborhood. They say it drives up prices and leaves their streets emptier.

“Houses that used to cost $100 to $200,000 are now costing $5 to $700,000,” said Tomi Ross, another Kenwick resident.

Although the legislation is still far from being implemented, residents are concerned about the consequences of losing these local safeguards.

“We are rapidly eliminating a wide range of housing, including affordable housing,” Myers said.

“We need to think about the people in our cities before we think about the tourists who visit our cities,” Ross said.

The city of Richmond considered its own ordinances regarding short-term rentals during a commission meeting Tuesday evening. They are considering changing zoning regulations, as well as adding registration and renewal fees for rentals.

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