Council tables short‑term rental ordinance to June 15 after concerns about caps and insurance

The Stillwater City Council voted unanimously May 18 to table a proposed short‑term rental ordinance until its June 15 meeting to give staff time to address concerns about density caps, insurance language and enforcement.

Steve Trost, director of the Institute for the Study of Free Enterprise at Oklahoma State University, testified during public comment that a density cap could be "gamed" through defensive licensing or by incumbent operators directing friendly neighbors to obtain licenses and thereby block competition. Trost said the ordinance’s grandfathering provisions could entrench incumbents and recommended distinguishing owner‑occupied short‑term rentals from investor‑operated properties.

On second reading, staff described one substantive change: they removed a fixed coverage amount and proposed requiring "proof of current valid property insurance," a change staff now suggested should explicitly include liability coverage. Councilors asked staff to ensure the requirement is practical and verifiable and to consult insurance professionals on language. Council members also discussed enforcement options such as requiring active advertising or use of third‑party monitoring software to detect unused permits.

Councilors and staff acknowledged enforcement challenges for an "owner‑occupied" exemption and asked staff to research how other cities handle owner‑occupied definitions and verification. Staff said some jurisdictions define owner‑occupied by a number of days lived in the property per year, but enforcing that standard can be difficult.

After discussion, the council voted 5–0 to table the ordinance to June 15 and directed staff to return with options on owner‑occupied treatment, proposed insurance language (including liability coverage), and potential enforcement mechanisms for cap manipulation.