The Fernley City Council has adopted new regulations for short-term rentals, creating standards for properties rented for fewer than 30 days and requiring operators to obtain city approval, a business license and pay lodging taxes.
Council approved Bill 383 on Sept. 16 following a lengthy discussion over how broadly the ordinance should apply and whether the city’s definition could unintentionally capture ordinary family arrangements.
The ordinance defines a short-term rental as a residential dwelling, portion of a dwelling, bedroom or accessory dwelling unit rented for fewer than 30 consecutive days. City staff said the rules are intended to apply to rentals such as Airbnb, Vrbo, Booking.com and similar arrangements rather than traditional long-term leases.
Under the new rules, short-term rentals may operate throughout the city but must receive a minor conditional use permit, obtain a business license and pay transient lodging taxes.
Maximum occupancy is three people per legal bedroom, plus two additional people per unit. Parking is limited to established parking areas including driveways, garages, carports and street frontage. Weekly trash collection is required, and functioning smoke detectors must comply with current fire code.
Only one short-term rental unit is allowed per property.
Special events such as weddings, receptions, private parties, fundraisers and business seminars are prohibited, and recreational vehicles, trailers and tents cannot be used to provide additional short-term sleeping space.
The Planning Commission will review applications and may impose additional conditions based on circumstances including inadequate parking, impacts on neighboring properties, the concentration of nearby short-term rentals and prior code violations.
The maximum occupancy and one-rental-per-property limits cannot be waived. Appeals of Planning Commission decisions may be taken to the City Council.
The Planning Commission had previously recommended the ordinance 7-0 after increasing the proposed occupancy limit from two to three people per bedroom and allowing street parking.
Much of the council discussion centered on the definition itself.
Councilman Joe Mendoza said the language initially struck him as broad enough that someone could interpret it to require a business license if a family member paid to stay in a room for a short period.
Planning staff said that was not the intent of the ordinance, which is aimed at commercial short-term rental activity.
Councilwoman Felicity Zoberski said the city was trying to balance property rights against impacts on established neighborhoods, including situations where companies or individuals lease houses and repeatedly place short-term workers in them.
“We don’t want short-term rentals to affect public health or safety or quality of life for people that already live here,” Zoberski said.
City Attorney Aaron Mouritsen cautioned against narrowing the definition only to rentals booked through third-party companies, noting that an owner could advertise and rent a property independently and avoid the rules.
He also said a somewhat broader definition gives future city officials flexibility to address rental arrangements that may not exist today.
Council ultimately amended the ordinance to specify an “adult guest or group of adult guests,” exempt direct family members and replace the reference to a standard conditional use permit with the city’s newly adopted minor conditional use permit process.
The council approved the amended ordinance 4-0.
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