Anchorage Short Term Rental Rules: What it Means for You

For right now it means nothing. As it last stood, Mayor Dave Bronson vetoed The Assembly’s short term rental rules which has prevented them from being in effect. The Assembly voted for the legislation 7-5 and would need an additional vote to override Mayor Bronson’s veto which they currently do not have.

Had the ordinance passed, Airbnb owners would have been required to obtain a license for their rental properties, adding new costs and potential penalties for non-compliance. The licensing program intended to regulate rentals facilitated through online platforms like Airbnb and Vrbo, while also gathering crucial data about the short-term rental market in Anchorage.

Among the proposed regulations, owners would have faced a two-year license fee of $400 per rental unit, renewable upon expiration. 

However, the ordinance included provisions to waive a substantial portion of this fee under certain circumstances. For instance, owners operating short-term rental units as part of their primary residence or renting to individuals for more than 180 days in the preceding year could have qualified for fee waivers.

Additionally, the ordinance mandated owners to maintain a minimum property liability insurance of $500,000 or the required amount for a bed and breakfast of similar size, whichever is less. This insurance requirement aimed to ensure the safety and protection of guests staying in short-term rental properties.

Owners failing to comply with the licensing requirements or violating other provisions of the ordinance would have faced penalties, including fines of $300 per night for operating without a license, advertising violations, and failure to address complaints or concerns from guests or neighbors. Repeat violations could have resulted in escalating fines and warnings.

While the ordinance did not impose limits on the number of rental units a person could operate, it included incentives to encourage owners to transition short-term units back into the long-term rental market. This provision aimed to address concerns about the impact of short-term rentals on Anchorage's housing supply and affordability.

So at the moment, Airbnb owners can breathe easy. But Anchorage will have a mayoral election in the next few weeks and a new mayor could support an Assembly working to establish short term rental rules in Anchorage. It is not known which candidates support the proposed ordinance and which do not.