Short-term rental listings have significantly decreased across Fayette County since the implementation of license regulations, according to data presented this week to the Lexington-Fayette Urban County Council’s General Government and Planning Committee.
Short-term rentals, also known as vacation rentals, are properties rented out to travelers for less than 30 days, often booked through companies like Airbnb and Vrbo.
The council passed an ordinance in 2023 requiring short-term rental owners to register with the city annually. Licenses are $200, with an additional $100 per year for each additional unit.
If an operator does not renew by Jan. 31 each year, their license is revoked. It can also be revoked if a property has two violations in a calendar year.
Lexington began enforcing the ordinance in January 2024.
The city also modified the ordinance in December 2024, lowering the maximum number of people who can occupy a short-term rental from 12 to 10 at a time. The change also bars new short-term rentals from being located within 600 feet of another.
According to a presentation from the Division of Revenue, Lexington currently has 787 current short-term rentals, down from 1,290 since the city began enforcing the ordinance.
The city has issued $78,125 in citations since January 2024, mostly against properties operating without a license. Of the 61 citations issued, 52 were for unregistered properties. The remaining nine have stemmed from nuisance violations, like noise and parking complaints.
The city has only collected $19,000 in citation fines and is still working on the remaining $59,125. Of those outstanding citations, $52,400 comes from just four individual properties. One property in particular owes $22,000.
“With the larger citations, we are putting liens on the properties and working with the law department for how we get paid back for those,” director of revenue Wes Holbrook said.
Holbrook said as long as a citation goes unpaid, short-term rental owners cannot renew or re-apply for their license to operate.
Lexington also launched a short-term rental hotline in 2024 for residents to report potential violations. Since July 2025, the hotline has received 51 invalid calls and 17 valid calls, including six related to unauthorized rentals.
