Indianapolis, Indiana Short-Term Rental Regulation: A Guide For Airbnb Hosts

What are Short-Term Rental (Airbnb, VRBO) Regulations in Indianapolis, Indiana?

The short-term rental market in Indianapolis has experienced significant growth in recent years, with an estimated 6,000 Airbnbs currently operating in the city. This expansion has prompted the city to implement specific regulations to ensure these properties operate responsibly while addressing community concerns. As a real estate expert specializing in short-term rentals, I've compiled the most current information about Indianapolis' regulatory landscape to help property owners navigate this dynamic market.

Starting a Short-Term Rental Business in Indianapolis, Indiana

Starting a short-term rental business in Indianapolis requires careful planning and adherence to local regulations. The city has implemented specific rules that all hosts must follow to operate legally.

Registration and Permits

To legally operate a short-term rental in Indianapolis, property owners must obtain a permit from the city. As of 2025, Indianapolis has passed a new law requiring all short-term rentals to register with the city and pay a one-time $150 fee. This registration requirement applies to each individual property, meaning owners with multiple properties must obtain separate permits for each one.

The registration process typically requires submitting an application that includes proof of ownership, a detailed floor plan of the rental space, and contact information. This information is then reviewed for compliance with zoning and safety codes before approval.

New Registration Law Implementation

The new registration law was passed in August 2024 and will go into effect at the beginning of 2025. This ordinance was proposed primarily as a way to gather data about short-term rentals and ensure the city has contact information for operators, especially since many properties are owned by out-of-state investors who may be difficult to reach.

According to Councilor Kristin Jones, who sponsored the proposal, "Many of these Airbnbs are owned by out of state, non-existent landlords who don't respond, and this is simply about providing a registry and a permitting process".

Tax Obligations

Short-term rental operators in Indianapolis must register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate. Hosts are required to collect state sales tax and Marion County innkeeper's tax from guests and file tax returns with the state.

Taxable charges include all fees essential to furnishing accommodations, such as cleaning fees, pet fees, extra person fees, and no-show fees. However, damage deposits, damage fees, cancellation fees, and extra services like laundry are not subject to lodging taxes.

While platforms like Airbnb and Vrbo are required to collect Indiana short-term rental taxes when bookings are made through their sites, hosts remain responsible for ensuring proper tax collection and remittance.

Operational Policies and Restrictions

Indianapolis has implemented several operational policies for short-term rentals to minimize disruption to local neighborhoods:

• Minimum Stay Requirement: The city has implemented a two-night minimum stay requirement for all short-term rentals to discourage the use of properties for parties or other disruptive activities.
• Prohibited Activities: Large parties, food trucks, and the use of recreational vehicles or trailers are prohibited at short-term rental properties.
• Occupancy Limits: Maximum guest numbers are determined by the size and capacity of the property, as established by the city.
• Compliance with Local Ordinances: STR operators must comply with all local ordinances related to noise, trash, parking, and other quality-of-life issues.

These concerns led to the formation of the Coalition to Address Short Term Rentals, which worked with the city to develop the new registration ordinance. The city can revoke an STR permit after three violations of the short-term rental ordinance, providing some recourse for addressing problem properties.

Starting a short-term rental business in Indianapolis requires careful consideration of these regulations, market conditions, and community dynamics. By understanding and complying with local rules, maintaining good relationships with neighbors, and developing a solid business strategy, hosts can navigate this evolving landscape successfully.

Short-Term Rental Licensing Requirement in Indianapolis, Indiana

Indianapolis has established a clear framework for licensing short-term rentals within city limits. Understanding these requirements is essential for anyone looking to operate an Airbnb or VRBO in the city. The recent changes to the licensing system make it more important than ever to ensure your property is properly registered.

Permit Application Process

To legally operate a short-term rental in Indianapolis, property owners must obtain a permit from the city. This requirement applies to any property rented for periods of less than 30 consecutive days. The new law requiring registration was passed in August 2024 and takes effect at the beginning of 2025.

The permit application process requires submitting several key documents:

Proof of ownership - This can be a deed, property tax statement, or other official document showing you are the legal owner of the property

Detailed floor plan of the rental space - This should clearly show the layout of the rental unit, including bedrooms, bathrooms, and common areas

Contact information for the owner and any local representatives - You must provide your name, address, phone number, and email address, as well as contact information for any local representatives managing the property in your absence

Business permit from the state of Indiana - In addition to the city permit, you must also obtain a business permit from the Indiana Secretary of State's office, which involves registering your business entity and obtaining a Registered Retail Merchant Certificate from the Indiana Department of Revenue

Fees and Renewal Process

The initial permit includes a one-time fee of $150, which is the maximum amount allowed under Indiana Code section 36-1-24-13. This fee applies to each individual property, meaning owners with multiple short-term rentals must obtain separate permits and pay separate fees for each property.

Permits are valid for one year from the date of issuance and must be renewed annually. The good news for property owners is that there is no fee for renewals, as long as the permit was not previously revoked for cause.

Where to Submit Applications

Applications for short-term rental permits can be submitted to the Indianapolis Department of Business and Neighborhood Services. They can be contacted by phone at (317) 327-8700 or by email at bnsenforcement@indy.gov.

Processing Time

While processing times can vary, the city of Indianapolis typically aims to review and approve complete applications within 10 business days. However, it's advisable to apply well in advance of your intended rental start date to allow for any potential delays or requests for additional information.

Penalties for Non-Compliance

Operating a short-term rental without a valid permit in Indianapolis can result in significant penalties. According to Indiana state law, renting without a valid permit is classified as a Class C infraction, which can result in fines of up to $500 per rental occurrence. This means each time you rent your property without a permit, you could face an additional $500 fine.

Additionally, the city can revoke an STR permit after three violations of the short-term rental ordinance. This provides the city with a mechanism to address problem properties that consistently violate regulations or generate complaints from neighbors.

Purpose of the Registration System

The new registration system was implemented primarily as a way for the city to gather data about short-term rentals and ensure they have contact information for operators. This is particularly important since many properties are owned by out-of-state investors who may be difficult to reach. As Councilor Kristin Jones, the proposal's sponsor, explained: "Many of these Airbnbs are owned by out of state, non-existent landlords who don't respond, and this is simply about providing a registry and a permitting process".

By understanding and complying with these licensing requirements, short-term rental operators in Indianapolis can avoid costly penalties while contributing to a well-regulated rental market that balances the interests of property owners, guests, and permanent residents.

Required Documents for Indianapolis, Indiana Short-Term Rentals

Successfully operating a short-term rental in Indianapolis requires proper documentation to ensure compliance with local regulations. The city has established specific requirements for STR operators to maintain transparency and accountability. Here's a comprehensive list of the documents you'll need to gather before applying for your short-term rental permit.

Proof of Ownership

This document establishes your legal right to operate a short-term rental on the property. Acceptable forms include a property deed, recent property tax statement, or other official documentation that clearly shows you are the legal owner. You can obtain copies of your deed from the Marion County Recorder's Office if you don't have the original.

Detailed Floor Plan

The city requires a comprehensive floor plan of your rental space to ensure it meets safety standards and capacity requirements. This should clearly show the layout of the rental unit, including the location of all bedrooms, bathrooms, and common areas. The floor plan helps city officials determine appropriate occupancy limits and verify that the property meets building code requirements. You can create this yourself or hire a professional to draft one.

Contact Information Documentation

You must provide complete contact details for yourself as the owner and any local representatives who will manage the property in your absence. This includes names, addresses, phone numbers, and email addresses. This information ensures the city can reach someone responsible for the property in case of emergencies or complaints. If you live out of state, having a local representative is particularly important.

Business Permit from the State of Indiana

In addition to the city permit, you must obtain a business permit from the Indiana Secretary of State's office. This involves registering your business entity (whether sole proprietorship, LLC, or corporation) and obtaining a Registered Retail Merchant Certificate (RRMC) from the Indiana Department of Revenue. This certificate is essential for collecting and remitting state sales tax and local innkeeper's tax.

Site Plan

A site plan showing the location of the short-term rental unit on the property and designated guest parking spaces is required. This helps the city ensure that your property won't create parking issues in the neighborhood. The site plan should also include any outdoor amenities, such as patios or decks, that guests will have access to.

Certificate of Insurance

You must provide proof of adequate insurance coverage for your short-term rental activities. Standard homeowner's insurance policies typically don't cover commercial use of your property, so you'll need either a specific short-term rental insurance policy or an endorsement to your existing policy. This protects both you and your guests in case of accidents or damages.

Rental Agreement Template

The city requires a copy of the rental agreement template you'll use with guests. This document should outline the terms and conditions of the rental, including check-in and check-out times, house rules, maximum occupancy, noise restrictions, and cancellation policies. Having clear rules helps prevent issues that could lead to complaints from neighbors.

Interior and Exterior Photographs

Recent photographs of both the interior and exterior of your rental property must be submitted with your application. These photos should accurately represent the current condition of the property and any amenities provided to guests. They help city officials verify that the property is suitable for short-term rental use and matches the submitted floor plan.

Safety Certification Documents

Documentation showing compliance with safety requirements is essential. This includes proof of working smoke detectors, carbon monoxide detectors (if the property has gas appliances or an attached garage), fire extinguishers, and clearly marked emergency exits. These safety features are non-negotiable and protect both your guests and your investment.

Tax Registration Documentation

You must register with the Indiana Department of Revenue for tax purposes and provide proof of this registration. Short-term rental operators in Indianapolis are required to collect and remit a 7% state sales tax and a 10% Marion County innkeeper's tax on all rental transactions. This documentation shows you're prepared to fulfill your tax obligations.

By gathering these documents before beginning the application process, you'll streamline your path to obtaining a short-term rental permit in Indianapolis. Remember that all documents must be current and accurate, as providing false information can result in permit denial or revocation. The city's goal is to ensure that all short-term rentals operate safely and responsibly while minimizing impact on residential neighborhoods.

Indianapolis, Indiana Short-Term Rental Taxes

Operating a short-term rental in Indianapolis comes with specific tax obligations that every host must understand and comply with. These taxes contribute to local infrastructure, tourism development, and other public services. As of May 2025, short-term rental operators in Indianapolis are subject to several taxes that must be collected from guests and remitted to the appropriate authorities.

State Sales Tax

All short-term rentals in Indianapolis are required to collect Indiana's State Sales Tax, which is currently set at 7% of the listing price. This tax applies to reservations of 29 nights or shorter and includes the base rental rate as well as any cleaning fees and guest fees. The tax is remitted to the Indiana Department of Revenue, and hosts must register to obtain a Retail Merchant Certificate before they can legally collect this tax.

The state sales tax applies to all charges that are essential to furnishing accommodations, including:

1. Base rental rate
2. Cleaning fees
3. Pet fees
4. Extra person fees
5. Rollaway bed fees
6. No-show fees

However, certain charges are not subject to sales tax, such as:

1. Damage deposits (if returned)
2. Damage fees
3. Cancellation fees
4. Additional services like laundry or dry cleaning

Marion County Innkeeper's Tax

In addition to the state sales tax, short-term rental operators in Indianapolis must collect the Marion County Innkeeper's Tax. As of 2025, this tax is set at 10% of the listing price, including cleaning and guest fees for reservations of 29 nights or shorter. This rate has been in effect since September 1, 2009, and applies to all accommodations within Marion County, which includes Indianapolis.

The Marion County Innkeeper's Tax applies to the same taxable charges as the state sales tax. This tax is also remitted to the Indiana Department of Revenue, which then distributes the funds to the county.

Tax Collection Responsibilities

While platforms like Airbnb and Vrbo are required to collect and remit these taxes on behalf of hosts for bookings made through their sites, hosts remain ultimately responsible for ensuring all taxes are properly collected and remitted. If you use a platform that doesn't automatically collect these taxes, or if you rent your property through other channels, you must collect and remit these taxes yourself.

It's worth noting that if you rent your personal primary residence for fewer than 15 days in the current or preceding calendar year, and the rentals are not made through a marketplace facilitator, you are exempt from lodging taxes. However, most serious short-term rental operators will exceed this threshold.

Tax Deductions and Write-offs for Short-Term Rental Operators

Operating a short-term rental also provides numerous opportunities for tax deductions that can significantly reduce your taxable income. Here are some key deductions available to Indianapolis short-term rental operators:

1. Depreciation: You can depreciate the cost of your rental property (excluding land) over 27.5 years, which provides a substantial annual deduction. Additionally, furnishings, appliances, and other items can be depreciated over shorter periods, sometimes just a few years.
2. Property Taxes: The property taxes you pay on your short-term rental are fully deductible as a business expense. In Indianapolis, where property values in popular tourist areas can be high, this deduction can be significant.
3. Cleaning and Supplies: The frequent turnover of guests in short-term rentals necessitates regular cleaning and restocking of supplies. All costs associated with cleaning services, housekeeping supplies, toiletries, and kitchen supplies are fully deductible.
4. Repairs and Maintenance: Costs to maintain your property in good working condition or restore it to its original condition are fully deductible in the year they are incurred. This includes plumbing repairs, HVAC maintenance, painting, and fixing broken items.
5. Mortgage Interest: If you have a mortgage on your short-term rental property, the interest portion of your payments is deductible as a business expense.
6. Insurance Premiums: The cost of insuring your short-term rental property, including both standard homeowner's insurance and any specialized short-term rental coverage, is fully deductible.
7. Utilities and Services: All utility costs associated with your rental property-including electricity, gas, water, trash removal, internet, and cable/streaming services provided for guests-are deductible business expenses.
8. Professional Services: Fees paid to property managers, accountants, attorneys, and other professionals related to your rental business are deductible.
9. Marketing and Advertising: Costs associated with promoting your rental, including professional photography, listing fees on platforms like Airbnb and VRBO, and any other advertising expenses, can be deducted.

Understanding and properly managing these tax obligations and deductions is essential for maximizing the profitability of your Indianapolis short-term rental. Keeping meticulous records of all income and expenses will not only ensure compliance with tax laws but also help you take advantage of all available deductions to minimize your tax liability.

Indiana Wide Short-Term Rental Rules

Indianapolis short-term rental operators must navigate not only city-specific regulations but also statewide laws that govern the industry across Indiana. Understanding these state-level requirements is essential for maintaining legal compliance while operating your Airbnb or VRBO in Indianapolis.

House Bill 1035: The Foundation of Indiana's STR Regulations

In 2018, Indiana passed House Bill 1035, which established a statewide framework for short-term rental regulations. This landmark legislation significantly impacts how cities like Indianapolis can regulate STRs within their boundaries. The bill was designed to strike a balance between protecting property owners' rights and allowing municipalities to implement reasonable regulations.

Under House Bill 1035, Indiana defines a "short-term rental" as any dwelling unit rented for periods of less than 30 consecutive days through a short-term rental platform like Airbnb or VRBO. This definition applies consistently across all municipalities in Indiana, including Indianapolis.

Protection of Primary Residences

One of the most significant aspects of Indiana's state law is the protection it provides for primary residences. The law explicitly protects a property owner's right to use their primary residence as a short-term rental. This means that if you're renting out your main home in Indianapolis, local regulations cannot prohibit you from doing so.

Limitations on Local Government Authority

House Bill 1035 places specific restrictions on what local governments, including Indianapolis, can and cannot do regarding short-term rental regulations:

No Outright Bans: Local governments cannot implement complete bans on short-term rentals. This protection ensures that property owners throughout Indiana maintain their right to participate in the short-term rental market.

Limited Regulatory Scope: Municipalities may only regulate short-term rentals for specific purposes, including:

1. Protection of public health and safety
2. Addressing nuisance issues
3. Safeguarding public welfare

Equal Enforcement: Any enforcement of short-term rental laws must be consistent with enforcement for non-STR properties, preventing discriminatory practices against short-term rental operators.

Fee Limitations: Local governments cannot charge more than $150 for short-term rental permits. This cap applies to Indianapolis's registration fee structure.

Special Exceptions for Non-Primary Residences

While primary residences receive strong protection under state law, local governments do have more flexibility in regulating properties that are not the owner's primary residence. Cities like Indianapolis can require special exceptions, special use permits, or zoning variances for investment properties used as short-term rentals.

Grandfather Clause for Pre-2018 Ordinances

It's worth noting that local government ordinances passed before January 1, 2018, can be stricter than what the 2018 state law allows. However, Indianapolis's new registration requirements were passed in 2024, so they must comply with the limitations established by House Bill 1035.

Homeowners Association Authority

Indiana state law recognizes the authority of homeowners associations (HOAs) to establish their own rules regarding short-term rentals. If your Indianapolis property is within an HOA, you'll need to check their specific regulations, as they may be more restrictive than city or state requirements.

State Tax Registration Requirements

Beyond operational regulations, Indiana state law requires all short-term rental operators to register with the Indiana Department of Revenue and obtain a Retail Merchant Certificate. This registration is necessary for collecting and remitting state sales tax and local innkeeper's taxes.

Understanding these statewide regulations provides the foundation for operating a compliant short-term rental in Indianapolis. While the city has implemented its own specific requirements, these local rules must operate within the framework established by Indiana's state law. By adhering to both state and local regulations, Indianapolis hosts can avoid penalties while contributing to a well-regulated short-term rental market that benefits hosts, guests, and permanent residents alike.

Does Indianapolis Strictly Enforce STR Rules?

Indianapolis has emerged as one of the hottest short-term rental markets in the country, ranking as the 4th most booked city on Airbnb. With approximately 6,000 Airbnbs currently operating throughout the city, the question of enforcement becomes particularly relevant for both existing and prospective hosts.

Based on feedback from local hosts and real estate investors, Indianapolis has historically maintained a moderate approach to STR enforcement. The city is generally considered more STR-friendly compared to other major metropolitan areas, with a regulatory framework that aims to balance the interests of property owners and neighborhood residents.

However, the landscape is evolving. The recent passage of the Short-Term Rental Permit Program in August 2024, which went into effect on January 1, 2025, signals the city's increasing attention to this sector. This new registry requirement demonstrates that Indianapolis is taking steps toward more structured oversight of the STR market.

Indianapolis can be characterized as moderately Airbnb-friendly compared to other cities. Unlike more restrictive markets like Hammond, Indiana (where fines for non-compliance can reach up to $2,500 per day for first offenses and $7,500 for subsequent violations), Indianapolis has created a regulatory environment where hosts can operate legally with relatively manageable requirements.

The city's approach stands in contrast to markets that have implemented outright bans or extremely restrictive policies. Indianapolis has instead focused on registration and basic operational standards rather than severely limiting STR operations. This balanced approach has contributed to the city's popularity among STR investors and hosts.

Despite the rules, many hosts have successfully established STR businesses in Indianapolis. Discussions on real estate forums like BiggerPockets reveal that most Indianapolis hosts find the city's regulations manageable compared to other markets. While some express frustration with aspects of the permit process, they generally consider the requirements achievable for operators committed to running legitimate businesses.

Indianapolis is decidedly more STR-friendly than many comparable cities, with enforcement that can be characterized as present but not overzealous. The city has established clear rules and consequences for non-compliance, including the potential revocation of permits after three violations, but doesn't appear to be aggressively hunting for violations.

This moderate enforcement approach has created an environment where compliant operators can thrive, particularly during high-demand periods like the Indianapolis 500, NCAA tournaments, or major concerts. However, the recent implementation of the registration requirement suggests that the city is moving toward more structured oversight, likely in response to the explosive growth of the STR market and associated community concerns.

For prospective hosts, Indianapolis represents a market with reasonable regulations and moderate enforcement, making it a viable option for those willing to comply with the city's requirements. However, the increasing saturation of the market and growing community activism around STR issues suggest that both the regulatory landscape and market conditions may continue to evolve in the coming years.

How to Start a Short-Term Rental Business in Indianapolis, Indiana

Starting a short-term rental business in Indianapolis requires careful planning, understanding of local regulations, and strategic implementation. With Indianapolis ranking as the 4th most booked city on Airbnb and having approximately 6,000 STRs operating throughout the city, the market offers significant potential for new hosts. Here's a comprehensive step-by-step guide to launching your short-term rental business in Indianapolis:

Research the Indianapolis STR Market

Begin by thoroughly researching the Indianapolis short-term rental market. Analyze demand patterns across different neighborhoods, identifying high-performing areas like downtown, Broad Ripple, or Fountain Square. Study occupancy rates, average nightly prices, and seasonal fluctuations. Pay special attention to major events that drive tourism, such as the Indianapolis 500, NCAA tournaments, conventions at the Indiana Convention Center, and concerts. Understanding these patterns will help you identify profitable investment opportunities and set realistic expectations for your business.

Understand Local Regulations and Requirements

Before investing in a property, familiarize yourself with Indianapolis's short-term rental regulations. As of 2025, Indianapolis requires all STR operators to register with the city and pay a one-time $150 fee. You'll need to comply with both city ordinances and Indiana state laws governing short-term rentals. Remember that Indiana state law protects your right to use your primary residence as an STR, but investment properties may face additional requirements. Check if your property falls within an HOA, as they may have their own restrictions on short-term rentals.

Select and Acquire a Suitable Property

Choose a property that aligns with your business goals and market research. Consider factors like proximity to attractions, safety of the neighborhood, parking availability, and potential for high occupancy rates. If you're purchasing a property specifically for STR use, work with a real estate agent familiar with the Indianapolis market and short-term rental regulations. Ensure the property is in a zone that permits short-term rentals and doesn't have HOA restrictions that would prevent such use.

Obtain Necessary Permits and Licenses

Register your short-term rental with the city of Indianapolis by submitting an application to the Department of Business and Neighborhood Services. Prepare all required documents, including proof of ownership, a detailed floor plan, contact information, and site plan showing parking spaces. Additionally, register with the Indiana Department of Revenue to obtain a Retail Merchant Certificate for collecting and remitting taxes. Consider forming an LLC or other business entity to protect your personal assets and potentially provide tax advantages.

Secure Proper Insurance Coverage

Standard homeowner's insurance typically doesn't cover commercial use of your property. Obtain specialized short-term rental insurance that protects against liability claims, property damage, and loss of income. Many hosts use a combination of homeowner's insurance with a short-term rental endorsement and a commercial liability policy. Some platforms like Airbnb offer limited protection, but these shouldn't be relied upon as your primary insurance.

Prepare and Furnish Your Property

Create a welcoming, comfortable space that stands out in the competitive Indianapolis market. Invest in durable, quality furnishings that can withstand frequent use while maintaining aesthetic appeal. Focus on comfortable beds, functional kitchens, and thoughtful amenities. Consider local themes that highlight Indianapolis's racing heritage, sports culture, or arts scene. Install safety features like smoke detectors, carbon monoxide alarms, fire extinguishers, and first aid kits. Smart home features like keyless entry systems enhance security and convenience for both you and your guests.

Develop Operational Systems and Procedures

Establish clear processes for managing bookings, communicating with guests, handling check-ins and check-outs, and maintaining the property between stays. Create detailed house rules and emergency procedures. Consider investing in property management software to automate tasks like booking management, cleaning scheduling, and guest communication. Develop relationships with reliable cleaning services, maintenance professionals, and a local property manager if you don't live nearby. Having these systems in place before your first booking will help ensure smooth operations.

Create Compelling Listings on Multiple Platforms

Develop attractive listings on platforms like Airbnb, VRBO, and Booking.com to maximize visibility. Invest in professional photography that showcases your property's best features. Write detailed, accurate descriptions highlighting unique amenities and proximity to local attractions. Be transparent about house rules and any potential drawbacks to set appropriate expectations. Consider creating a direct booking website to reduce platform fees and build a loyal customer base. Research competitor listings to ensure your pricing and amenities are competitive.

Implement a Strategic Pricing Model

Develop a dynamic pricing strategy that adjusts rates based on seasonality, local events, and demand patterns. Indianapolis experiences significant demand fluctuations during major events like the Indy 500, conventions, and concerts. Set higher rates during these periods while offering competitive prices during slower seasons. Consider offering discounts for longer stays to increase occupancy rates during off-peak times. Regularly review and adjust your pricing strategy based on occupancy rates and market conditions.

Comply with Tax Obligations

Register to collect and remit the 7% Indiana state sales tax and 10% Marion County innkeeper's tax on all rental transactions. Maintain detailed records of all income and expenses for tax purposes. Set up a system for regularly filing tax returns and remitting collected taxes to the appropriate authorities. Consider working with an accountant familiar with short-term rental tax requirements to ensure compliance and maximize deductions.

Focus on Guest Experience and Reviews

Prioritize exceptional guest experiences to generate positive reviews, which are crucial for success in the competitive Indianapolis market. Respond promptly to inquiries and address any issues that arise during stays. Provide local recommendations for restaurants, attractions, and activities. Consider offering thoughtful touches like welcome baskets with local products or detailed neighborhood guides. Actively solicit reviews from satisfied guests and use feedback to continuously improve your offering.

Monitor Performance and Adapt Your Strategy

Regularly analyze key performance metrics like occupancy rates, average daily rate, and revenue per available room. Compare your performance against market benchmarks and adjust your strategy accordingly. Stay informed about changes in local regulations, market conditions, and competitor offerings. Be prepared to adapt your business model in response to evolving trends and challenges in the Indianapolis short-term rental market.

By following these steps and remaining adaptable to market changes, you can establish a successful short-term rental business in Indianapolis that provides value to guests while generating sustainable returns on your investment.

Who to Contact in Indianapolis, Indiana about Short-Term Rental Regulations and Zoning?

Navigating the regulatory landscape for short-term rentals in Indianapolis requires knowing which agencies and resources to contact for accurate information and assistance. Whether you're just starting your STR business or need clarification on existing regulations, these official contacts can provide the guidance you need.

Indianapolis Department of Business and Neighborhood Services

This department serves as the primary regulatory body for short-term rentals in Indianapolis. They handle permit applications, enforcement of STR regulations, and can answer questions about compliance requirements. Their staff can guide you through the registration process and help you understand your obligations as an STR operator.

1. Phone: (317) 327-8700
2. Email: bnsenforcement@indy.gov
3. Office Hours: 9AM-4PM Monday-Friday
4. Address: 1200 Madison Ave., Suite 100, Indianapolis, IN 46225

The Department of Business and Neighborhood Services is responsible for enforcing the city's Short-Term Rental Permit Program that was passed in August 2024 and implemented in January 2025. They can provide information about licensing requirements, inspections, and address compliance issues that may arise with your property.

Indianapolis Department of Metropolitan Development, Division of Planning

This division handles zoning matters and can provide crucial information about whether your property is zoned appropriately for short-term rental use. If you need a special exception or variance for your STR, this is the department to contact.

1. Phone: (317) 327-5155
2. Email: planning@indy.gov
3. Office Address: City-County Building, 200 E. Washington St., Suite 1821, Indianapolis, IN 46204

The Division of Planning can help you understand zoning classifications, permitted uses in different zones, and any special exceptions or variances that might be required for your short-term rental property.

Indiana Department of Revenue

For questions related to tax obligations for your short-term rental, including state sales tax and the Marion County innkeeper's tax, contact the Indiana Department of Revenue. They can provide guidance on registration, collection, and remittance procedures.

By maintaining contact with these official agencies and community resources, you'll be better positioned to navigate Indianapolis's short-term rental regulations successfully. Remember that regulations can change, so it's advisable to periodically check with these contacts to ensure your operation remains compliant with current requirements.