INDIANAPOLIS – The Indiana Senate approved a provision Monday enabling municipalities to require short-term rental owners to pay a fee for a permit to operate as an Airbnb or Vacation Rental By Owner (VRBO) property.

The provision was an attempt to resolve differences over House Bill 1133 in regulating properties rented for less than 180 days. The bill, which regulates rentals, initially passed the House 53-40.

It preempted local community bans on the rentals; instead they would operate under state guidelines. The new provision gives local communities more say on the rentals.

Under the new provision, municipalities could require landlords to sign up for a permit that can be revoked if three nuisance violations are recorded in a year.

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