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South Bend to start regulating short-term rentals next year

Notre Dame Stadium
WVPE
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WVPE
Notre Dame Stadium

Notre Dame will host its first big game of the season Saturday against Michigan State, bringing thousands of visitors into Michiana. The South Bend common council this week passed two bills aimed at addressing neighbors’ complaints about short-term rentals.

Thousands of those fans will stay in homes they rent on platforms like AirBnb and VRBO. Some are owned by investors, some are owner-occupied and their owners find somewhere else to stay for the weekend to make some extra cash.

The council Monday night passed two bills. One requires all short-term rental owners to register with the city so that the city has a 24/7 contact if problems occur. The other bill, drawing more opposition from investors, requires these properties to obtain a zoning special exception.

But owner-occupied rentals will be exempted from the zoning exception requirement, says council member Heidi Beidinger.

“We’re not talking about a huge volume of folks," Beidinger says. "We have somewhere between 1,000 and 1,300 short-term rentals. All of those folks are going to be grandfathered in.”

The South Bend Association of Realtors opposed the special exception bill, as did John De Souza, president and co-owner of Cressy & Everett Real Estate.

“I think what will happen is that some buyers and sellers, once they understand what the process is, may choose not to buy or sell for that purpose," De Souza says. "And that will definitely impact the use of the properties and property values in the area.”

Both of the bills take effect Jan. 1.

Parrott, a longtime public radio fan, came to WVPE in 2023 with over 25 years of journalism experience at newspapers in Indiana and Michigan, including 13 years at The South Bend Tribune. In his free time he enjoys pickleball, golf and spoiling his dog Bailey, who is a great girl.