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Home My WebLink AboutCD Short-Term Rentals Report PPTShort Term Rental Informational Report San Rafael City Council August 5th, 2019 Background Short Term Rental Informational Report August 5th, 2019 Background Jan. 4, 2016-Council ask Staff to begin monitoring STR activity as part of JDU ordinance review June 10, 2016-Staff enters into contract with Host Compliance to provide the following STR monitoring services: ▪Trend Monitoring; ▪Address Identification Aug. 20, 2018-Staff provides Housing Report to City Council. Council directs staff to return with informational report on STRs. Today-San Rafael does not prohibit, regulate, tax or enforce STRs. Feb. 19, 2019-Staff provides STR Informational Report to City Council. Council directs staff to: •Expanded community outreach on Short-Term Rental approaches, regulations, best practices and options •Further analysis on the impacts of Short-Term Rentals on the housing stock in San Rafael •Further analysis on the use of Accessory Dwelling Units (ADU) and JDUs as STRs Existing Conditions •~271 Active Listings in last 12 months: •Increase from 150 active listings when monitoring first began in 2016. •3-Bedroom Single Family Homes are the largest “host- described” property type (75-listings); •Distributed relatively equally geographical across city: •Slight concentrations in West End, Gerstle Park, and Dominican neighborhoods. •Over the last three years, the Community Development Department has received less than a dozen STR related complaints. Short Term Rental Informational Report August 5th, 2019 Community Outreach Community Meetings March 20, 2019: Federation of Neighborhoods Meeting April 4, 2019: Airbnb Host Meeting May 29th and May 30th: Community Meetings to discuss Survey June 18th: San Rafael Chamber of Commerce Short Term Rental Informational Report August 5th, 2019 Community Survey: Overall Findings Who took the survey? Answered: 409 Skipped: 0 Short Term Rental Informational Report August 5th, 2019 Who took the survey? Short Term Rental Informational Report August 5th, 2019 Overall Findings 40% (155). San Rafael should allow Short-Term Rentals but regulate them. 22% (84). San Rafael should ban Short-Term Rentals 4% (17). Not Sure/ Undecided 33% (128). San Rafael should leave Short-Term Rentals unregulated. Short Term Rental Informational Report August 5th, 2019 Overall Findings Are you aware of any Short-Term Rentals in your neighborhood? Short Term Rental Informational Report August 5th, 2019 Overall Findings If yes, have the Short-Term Rentals caused any problems?Are you aware of any Short-Term Rentals in your neighborhood? Short Term Rental Informational Report August 5th, 2019 Overall Findings Lack of Parking Strangers in the Neighborhood Noise Complaints Other Partying Improper Trash Disposal Guests entering the wrong property If yes, please choose the option(s) below that best describes the problem. Short Term Rental Informational Report August 5th, 2019 Overall Findings Loss of Long-Term Housing Strangers in the Neighborhood Noise Increases in Housing Prices Party Houses Resident Displacement Personal Security How concerned are you about the following challenges related to Short- Term Rentals? Impacts on Neighborhood Character Parking Short Term Rental Informational Report August 5th, 2019 Overall Findings Loss of Long-Term Housing Strangers in the Neighborhood Noise Increases in Housing Prices Party Houses Resident Displacement Personal Security How concerned are you about the following challenges related to Short- Term Rentals? Impacts on Neighborhood Character Parking “Party Houses” was the only issue where delta between Not Concerned and Very Concerned was near zero. All others “Not Concerned” was largest response. Short Term Rental Informational Report August 5th, 2019 Overall Findings Require additional parking Require 24-hour local contact Limit number of guests or occupants Require short-term rentals pass a safety inspection Require owner lives at the property Require rules be posted in rental Limit short-term rentals to one per resident How would you prioritize the following Short- Term Rental regulations? Ban all short-term rentals Restrict number of days rented per year Require notification of neighbors of a new listing Require exterior signage Short Term Rental Informational Report August 5th, 2019 Overall Findings Require additional parking Require 24-hour local contact Limit number of guests or occupants Require short-term rentals pass a safety inspection Require owner lives at the property Require rules be posted in rental Limit short-term rentals to one per resident How would you prioritize the following Short- Term Rental regulations? Ban all short-term rentals Restrict number of days rented per year Require notification of neighbors of a new listing Require exterior signage % of “Single Biggest/ Major Priority” responses ≥ % of “Not A Priority” response for 5 Regulations Short Term Rental Informational Report August 5th, 2019 Community Survey: Short-Term Rental Hosts Short-Term Rental Hosts Have you ever been a Short-Term Rental Host? 5% (18) 14% (53) 15% (57) 66% (254) Have you ever been a Short-Term Rental Host? 14% (18) 2% (2) 84% (104) Short Term Rental Informational Report August 5th, 2019 Short-Term Rental Hosts Have you ever been a Short-Term Rental Host? Please select the type of listing you would host? 5% (18) 14% (53) 15% (57) 66% (254) Short Term Rental Informational Report August 5th, 2019 Short-Term Rental Hosts It helps me pay my mortgage. I enjoy entertaining and meeting new people I have extra space. I enjoy the sharing economy. Why do you want to host a Short-Term Rental? It provides additional income. I enjoy promoting San Rafael I do not want to manage a long-term rental Short Term Rental Informational Report August 5th, 2019 Short-Term Rental Hosts It helps me pay my mortgage. I enjoy entertaining and meeting new people I have extra space. I enjoy the sharing economy. Why do you want to host a Short-Term Rental? It provides additional income. I enjoy promoting San Rafael I do not want to manage a long-term rental Financial reasons are the main drivers for hosting Short-Term Rentals Short Term Rental Informational Report August 5th, 2019 Short-Term Rental Hosts 58% (73) of Hosts said they would be willing to pay an annual registration fee. Short Term Rental Informational Report August 5th, 2019 Short-Term Rental Hosts 58% (73) of Hosts said they would be willing to pay an annual registration fee. On average, hosts said they would be willing to pay an annual fee of $121 (including hosts who said they would not be willing to pay a fee) Short Term Rental Informational Report August 5th, 2019 STR Impacts on Existing Housing Stock STR Impacts on Existing Housing Stock 1 2 6 4 5 6 5 5 5 5 1 7 7 7 8 33 30Since 2000, the City of San Rafael has approved 137 permits for ADUs, JDUs, or Second Units… Short Term Rental Informational Report August 5th, 2019 STR Impacts on Existing Housing Stock 1 2 6 4 5 6 5 5 5 5 1 7 7 7 8 33 30 …When staff compared these 137 permits to the 271 STRs currently advertised, only 17 STRs were on a property with an approved JDU, ADU, or Second unit permit. Short Term Rental Informational Report August 5th, 2019 STR Impacts on Existing Housing Stock When Staff reviewed all 271 active STR listings, 60 STRs were identified as likely to be an additional onsite unit (i.e. ADUs, JDUs, duplex unit to single-family home. Short Term Rental Informational Report August 5th, 2019 Draft Ordinance Zoning Code Amendments (SRMC 14.03.030) Add a definition for “Short Term Rentals”: “Short-term rental” means the rental of all or a portion of a dwelling unit for less than 30 days of consecutive tenancy. Amend the definition of “Hotel” by removing “multiple guest rooms”: "Hotel" means any building or portion thereof containing multiple guest rooms designed for compensation, primarily for the accommodation of transient travelers, with eating, drinking, banquet and recreational facilities related to the hotel use, but not including those facilities defined as residential care facilities. Amend the definition of “Home Occupation” to explicitly not apply to short-term rentals: "Home occupation" means an accessory use of a dwelling unit, conducted entirely within the dwelling unit, carried on by one (1) or more persons, all of whom reside within the dwelling unit, as further defined in Section 14.16.220, Home occupations, but not including those facilities defined as short-term rentals in Section 14.03.030 of this Code. Short Term Rental Informational Report August 5th, 2019 TOT Definition Amendments (SRMC 3.20.020) Add “Short Term Rentals” to definition of “Hotel” : “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, short-term rental or other similar structure or portion thereof. Short Term Rental Informational Report August 5th, 2019 Add New: Chapter 10.110-Short Term Rental Program Policy Element Description Registration & Fees Short-Term Rental hosts will be required to submit an initial registration and annual renewal. Hosts will need to pay the following registrations fees: •Initial Registration Fee: $165 •Annual Renewal Fee: $130 Hosts will also be required to collect and remit TOT (10% City, 2% County) for all rentals. Quarterly Reporting Requirements for Hosts Reporting each quarter on the number of days the SYT has been rented since the initial registration or the last report. Hosting Platform Requirements •Noticing of City Regulations to Hosts, •Confirmation of Listing Registration with City, •Reporting and Record Keeping Measures. Administrative Enforcement Procedures and fines would be conducted in accordance with SRMC Chapter 1.44 and Chapter 1.46. Short Term Rental Informational Report August 5th, 2019 STR Program Design Compliance Monitoring Software Potential services provided through an expanded contract with Host Compliance: STR Address Identification: an online dashboard with address and rental information for all identifiable STRs Compliance Monitoring: outreach and monitoring of STR listings for compliance with a jurisdiction’s zoning and regulations Permitting and Registration: online and mobile registration or permitting including collection of payments, signatures, and required documents Rental Activity Monitoring and Tax Collection: monitoring of STR listing rental activity and support for TOT collection Complaint Hotline: 24/7 staffed hotline for neighbors to report non-emergency STR problems Short Term Rental Informational Report August 5th, 2019 Registration STR hosts would be required to register through the Host Compliance software, by providing the following: •Property Information including address, type of listing, occupancy, and number of parking spaces •Business License Registration •Vegetation Management Plan (for properties within a Wildlife Urban Interface) •24-Hour Local Emergency Contact available to receive calls from the guest(s) at any time, day or night •Instructions for trash disposal to be provided to renters •Information on San Rafael Noise Ordinance requirements •Payment of Fees and TOT Short Term Rental Informational Report August 5th, 2019 Estimated Annual STR Program Balance Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing Year 1 Ongoing Low-End $39,814 $31,551 $18,051 $39,814 $31,551 $18,051 $18,051 Mean $39,814 $31,551 $39,738 $39,814 $31,551 $39,738 $39,738 High-End $39,814 $31,551 $105,183 $39,814 $31,551 $105,183 $105,183 Annual Balance * Program fees are calculated as cost-recovering for program expenses. If fees are collected, Year 1 and Ongoing program balances would be the same as they reflect the TOT Revenue collected that year. Projection Revenue Expenditures Short Term Rental Informational Report August 5th, 2019 Potential Policy Elements Potential Policy Elements Short Term Rental Informational Report August 5th, 2019 Low Enforcement Effort ~10%-25% increase in costs per policy Medium Enforcement Effort ~25%-50% increase in costs per policy High Enforcement Effort >50% increase in costs per policy •Owner Occupancy •Posting of Emergency Information •Ineligible Uses: Properties with existing rental or residential restrictions •Self-Certification Inspection •Occupancy Limits •Ineligible Uses: Non-Permanent Structures •Annual Cap on Nights Rented •Additional Parking Standards (including shared driveways) •Ineligible Uses: ADUs and JDUs Staff Recommendations •Should the City Council decide to move forward with STR regulations and include additional policy elements, staff supports the inclusion of the following policies: •All policies requiring a low enforcement effort •All policies requiring a medium enforcement effort. •Should the City Council decide to move forward with restrictions on ADUs and JDUs, staff supports allowing ADUs and JDUs to be used for STRs only if the property is owner-occupied by the host and the main house is not also registered as an STR. Including both requirements would align the STR restrictions placed on ADUs and JDUs with existing owner-occupancy restrictions for ADU and JDU planning permits. •Staff does not support the inclusion of an annual cap on nights rented or additional parking/ shared driveway standards. Short Term Rental Informational Report August 5th, 2019 Staff Recommendations •Staff seeks direction on whether to include in the definition of Ineligible Use: Non-Permanent Structures travel trailers without a motor or engine—such as “camp trailers” or “fifth-wheel trailers”. Should the City Council decide that travel trailers not be included in this definition, Staff seeks direction on whether additional regulations should be included for travel trailers, such as: •Requiring separate and legal water, power, and sewage connections •Prohibiting generator use •Mandatory safety inspections and additional fee •Off-driveway parking platform •Additional off-street parking •Limited Street Visibility Short Term Rental Informational Report August 5th, 2019 City Council Options City Council Options The City Council has the following options to consider on the matter: •Accept the report and direct staff to return with program design and corresponding draft ordinance. •Direct staff to return with more information. •Accept the Report with no follow-up action. •Do not accept the report. Short Term Rental Informational Report August 5th, 2019 Appendix 2.19 Staff Report Analysis Low Estimate Option Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing With Fees Collected* No Fees Collected (TOT Only) With Fees Collected* No Fees Collected (TOT Only) 1) Status Quo $0 $0 $0 $0 $5,130 $0 $0 -$5,130 -$5,130 2) Minimal Enforcement $34,907 $26,576 $18,051 $34,907 $26,576 $18,051 -$16,856 $18,051 -$8,525 3) STR Ban $0 $0 $0 $60,835 $46,948 -$60,835 -$60,835 -$46,948 -$46,948 Mean Estimate Option Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing With Fees Collected* No Fees Collected (TOT Only) With Fees Collected* No Fees Collected (TOT Only) 1) Status Quo $0 $0 $0 $0 $5,130 $0 $0 -$5,130 -$5,130 2) Minimal Enforcement $34,907 $26,576 $39,738 $34,907 $26,576 $39,738 $4,831 $39,738 $13,163 3) STR Ban $0 $0 $0 $60,835 $46,948 -$60,835 -$60,835 -$46,948 -$46,948 High Estimate Option Year 1- Fees Ongoing- Fees TOT Year 1 Ongoing With Fees Collected* No Fees Collected (TOT Only) With Fees Collected* No Fees Collected (TOT Only) 1) Status Quo $0 $0 $0 $0 $5,130 $0 $0 -$5,130 -$5,130 2) Minimal Enforcement $34,907 $26,576 $105,183 $34,907 $26,576 $105,183 $70,276 $105,183 $78,608 3) STR Ban $0 $0 $0 $60,835 $46,948 -$60,835 -$60,835 -$46,948 -$46,948 * Program fees are calculated as cost-recovering for program expenses. If fees are collected, Year 1 and Ongoing program balances would be the same as they reflect the TOT Revenue collected that year. Annual Balance Annual Balance Annual Balance Year 1 Ongoing Year 1 Ongoing ExpendituresRevenue Expenditures Expenditures Revenue Revenue Year 1 Ongoing Staffing & Program Costs One Time New Existing New Host Compliance Services Address Identification $8,487 Mobile Registration $5,000 Compliance Monitoring $3,339 Rental Activity Monitoring $4,452 24/7 Dedicated Hotline $2,671 Host Compliance Sub-total Implementation Staffing (One-Time) Program Management 60 $4,066 City Attorney 10 $1,148 STR Workshop 8 $542 Technology development 20 $1,355 Permit Processing 20 $1,151 Community Development Staffing (On-going) Program Management 60 $3,454 Code Enforcement 20 $1,151 Finance Staffing (On-going) Business License & TOT Processing 20 $1,205 $1,205 Business License & TOT Review 20 $1,793 $1,793 One-Time Staffing Subtotal $8,262 On-Going Staffing Subtotal Total $8,262 $23,949 $7,602 $31,551 Est. Hour On-Going Short Term Rental Informational Report August 5th, 2019