Columbia City Council approves $58K contract for short-term rental monitoring
Mitchell Kaminski
COLUMBIA, Mo. (KMIZ)
The Columbia City Council on Monday night unanimously approved a $58,000 consultant agreement with Avenu Insights and Analytics to help track and enforce the city’s new short-term rental regulations.
Between February and July, the city passed a series of ordinances establishing land use, business license, and tax rules for short-term rentals, such as Airbnbs or VRBOs. As those regulations took effect, city staff said a specialized vendor would be needed to help monitor compliance.
According to a council memo, Avenu’s software will track listings across 80 different rental platforms, identifying properties used as short-term rentals and flagging those operating without a license. The system will also collect data on occupancy rates and estimated revenue to help ensure the city collects the required 5% accommodation tax.
Development Services Manager Patrick Zenner said the city currently reviews listings on only a handful of major platforms when an application is submitted, which means some rentals can go undetected.
“Without having the vendor’s services, the City’s ability to identify operators and bring them into licensure compliance is significantly curtailed which results in less ability to collect the accommodations taxes that are regulatorily required to be paid by each operator,” Zenner said in an email.
During Monday’s meeting, Ward 1 Councilwoman Valerie Carroll described the process of tracking those rentals as “labor-intensive and onerous” on city staff. A large selling point of the contract was the cost, with Community Development Director Clinton Smith adding that the contract costs about half the amount of hiring a full-time employee to do the same work.
The proposed five-year contract includes a $5,000 setup fee and an annual maintenance cost starting at $26,250, with small increases each year. The agreement could be extended for up to 10 years at a total cost of about $312,000. The contract allows the city to terminate the agreement at any time without cause.
City staff estimates there are about 475 active short-term rentals in Columbia, but only 125 applications have been submitted, resulting in a compliance rate of less than 25%. If all were licensed and taxed, the city projects annual revenue of roughly $818,000—well above the contract’s cost.
Zenner said the vendor will also operate a 24-hour complaint hotline and assist with enforcement efforts, acting as “an extension of the city’s staff” in monitoring short-term rental activity. Zenner added a major factor in picking Avenu was they were one of only a few vendors that offered live U.S.-based customer service.