STR License & Kansas City, MO Regulations

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STR License & Kansas City, MO Regulations

Levi Perl
Kansas City · Member since 2023 · 23 posts · 10 votes

I am interested in buying a STR in Kansas City, MO. The city has a law that a biz must have a license to own a STR in the city. However, I am being told by my agent that getting that license is basically impossible. At the same time, I am seeing that there are definitely STR props on the market in KCMO. And the city makes it at least look like there is a process for obtaining that license. Is it really impossible to get that  license? What would it take to get one?

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Grant Woodward
Member since 2021 · 47 posts · 42 votes
1y

Unfortunately, it is impossible unless you are either 1.) an owner occupant in the property you are using as an STR. or 2.) you buy a property with an existing license that was grandfathered in under the previous ordinance.

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  • Grant Woodward
    Member since 2021 · 47 posts · 42 votes
    1y

    Unfortunately, it is impossible unless you are either 1.) an owner occupant in the property you are using as an STR. or 2.) you buy a property with an existing license that was grandfathered in under the previous ordinance.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    I would confirm with the city that someone that has an existing license, that the license would transfer to the new owner.

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  • Milton ChamberlainPro Member
    Real Estate Agent · Kansas City, MO · Member since 2019 · 236 posts · 107 votes
    1y

    My understanding is that there's no definitive answer regarding if a grandfathered license will transfer with the sale of the property. I've heard that you would need to buy the actual business LLC associated with the STR license, but never had confirmation on this.

    I have helped several folks by short term rentals in the Kansas City metro. Johnson County, specifically Overland Park large homes are the most profitable, from the numbers that I've seen and heard, but they are legal in other regions as well, such as the I 35 north corridor of Claycomo, Pleasant Valley, liberty, and Kearney, Missouri , although there are specific things to consider regarding each municipality and how they treat short-term rentals. An example, Liberty charges a 10% hotel tax on all revenue. In Overland Park, it's important to note that a majority of the HOA's do not allow short term rentals, so you should avoid those homes.
    you can typically find the information pretty easily by searching each cities website.. But to save you some time, most of the Northland does not allow it, or it is at least very difficult to obtain a license. The only areas allowed are in the north east and then way up north in Smithville. Which has a large lake, so not a terrible place for a short term rental. Then down south, essentially the only areas that allow are a majority of the Johnson county Kansas, cities, so Overland Park, Shawnee, Lenexa, etc. there are a few little ones that don’t allow, but you can find that info on their websites . I haven’t checked in on the status of the Southeastern portion of Jackson County recently, so not sure what the current status is over there for places like independence, Blue Springs, Lee Summit. 

    [email protected]573-356-1607
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  • Levi Perl
    OP
    Kansas City · Member since 2023 · 23 posts · 10 votes
    1y

    @Grant Woodward
    Wow. Can you explain why they don't allow regular investors to start Aribnbs? Does KCMO just want to make it impossible for STRs to pop up?

    @Milton Chamberlain
    Given that you have experience brokering STR props - what would it take to make a prop a STR rental in KCMO? I am specifically looking at a prop near Prospect and 41st.

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    1y

    Hey @Levi Perl, it sounds like you will be swimming upstream while being slapped by salmon and getting hit with paddles from rafters.

    This seems like a way to lose some cash and cause yourself a lot of problems.

    Why not look elsewhere?

    1Reply
  • Levi Perl
    OP
    Kansas City · Member since 2023 · 23 posts · 10 votes
    1y

    Because there are people who own Airbnbs in KCMO and apparently are in business. It’s the place that has the highest barriers where the least number of players will be. 
    The City sent this to me today. How do you all of you understand this?

    "Short-Term Rental (STR) Registrations are still being granted in KCMO if the applicant meets the requirements set forth in the STR Ordinance. To review the STR Ordinance, please click the following link - https://www.kcmo.gov/home/showpublisheddocument/13966/638670239825970000. If or when you are ready to apply, please visit the STR website -https://www.kcmo.gov/programs-initiatives/str. There you will find detailed instructions on how to submit your application.”

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    What about all of the towns in and around KC Metro?  Olathe, Shawnee Mission, Lenexa, etc. 

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
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