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Judge orders stop to short-term rentals at Carmel home

The City says the woman is breaking the law by renting the home out without a special permit. A judge issued a preliminary injunction blocking rentals there for now.

CARMEL, Ind. — A judge has issued a preliminary injunction, blocking short-term rentals at a home in Carmel. 

The homeowner and her company are facing a lawsuit from the city of Carmel for allegedly renting out a home illegally. 

In a lawsuit filed in Hamilton County Court, the city says the home near 136th Street and Ditch Road hasn't been established as a permanent residence. The city also says the owner, Serena Burkard, never received the special exception needed to use a home as a short-term rental.

On July 19, the judge in the case blocked the homeowner from renting the house for less than 30 days. 

13News talked to Burkard on the phone before the injunction was issued.

"We haven't violated anything. We have never rented to someone for less than 30 days," Burkard said, who also claimed the house was her primary home with her two children and rented it out while they were gone in the summer. "Unfortunately, the neighbors don't know what's going on when it's not their house."

Neighbors claim they've noticed disturbances at the home since Burkard moved in in March.

Carmel is one of the only cities in Indiana allowed to regulate short-term rentals under state law. That has caused issues around central Indiana.

Under Carmel ordinances, in order to rent out a home on a site like Vrbo or Airbnb, a homeowner needs to establish it as a permanent residence. Then, they need to apply for a special exception.

(NOTE: the video at the top of this story is from before the injunction was issued)

The home was purchased in March 2024. Carmel's lawyers said the house was listed on Vrbo the same day it was bought. 

The city allegedly sent warnings to Burkard in March and May, warning them they were violating city ordinances. 

RELATED: Police ask Indy communities to look out for pop-up parties at short-term rentals after 12-year-old shot

In the lawsuit, the city's lawyers want a judge to "issue an order granting the City authority to enter onto the Property and take appropriate action to bring the Property into compliance." 

They also want Burkard to pay the costs of enforcement and pay fines. 

RELATED: Fountain Square neighbors track problematic short-term rental properties

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