Agenda - Planning Commission - 11/12/2015

Home

This three-bedroom home near Miami's Coconut Grove night, with a five -night minimum stay. Affordable Housing Short-term rentals (STRs) increase the stock of furnished, short-term accommodations. Be- cause many of the rentals involve renting a room in a permanently occupied dwelling, they are of- ten less expensive than commercial lodging. The benefit for home owners or long-term tenants who host STR guests is additional income, which can help offset mortgage or rent payments. Some contend that STRs may exacerbate the shortage of lower cost rentals because land- lords, attracted by the higher revenue stream from STRs, are taking apartments out of long- term rentals, especially in tight markets like New York and San Francisco (Monroe 2014; Moskowitz 2015). Others say high tenant de- mand and demographics are the cause of the problem, not STRs, which are a small share of the market (Lewyn 2015; Rosen 2013). Aging in Place Short-term rentals of rooms in homes and apart- ments not only provide additional revenue for those aging in place, but they may provide an opportunity for sharing of chores and bartering for services, just as accessory apartments do. This can enable older people to stay in their homes longer before transitioning to an inde- pendent or assisted living facility. Commercial Lodging The only possible benefit ofSTRs with regard to existing commercial lodging is that it may stimulate competition and lower prices for the consumer. The negatives are several. Short - 0 This condo hotel in downtown Honolulu includes owner- and long-term renter -occupied units, privately owned units available for daily rental through the building's hotel operator, units owned by the hotel operators, and privately owned units available for short-term rental through Airbnb and similar sites. term rentals may reduce commercial lodging revenues. In many situations STRs have an advantage over commercial lodging because the STRs do not pay the occupancy taxes paid by commercial lodging. Short-term rentals generally do not need the service workers employed in commercial lodging. Unions and service workers often oppose STRs. State and Local Government Revenues to state and local government may go down as a result ofSTRs because, as noted, such rentals usually do not pay the occupancy and other taxes levied on commercial lodging. Airbnb does provide 1099 forms to hosts to report their income, and it has begun collect- ing and remitting hotel and tourist taxes in San Francisco; San Jose, California; Chicago; and Washington, D.C. (Hantman 2015). Health and Safety Much of the STR market today is unregulated. Those who rent typically do not have their prem- ises inspected to determine compliance with health, building, housing, and safety codes. For its part, Airbnb does clearly state in its terms of service that some localities have zoning or administrative laws that prohibit or restrict STRs and that "hosts should review local laws before listing a space on Airbnb." Airbnb also provides a guide to respon- sible hosting on its website, and what they do address is good guidance for local planners and regulators, and thus worth reading. How many hosts read and follow up on the suggestions is another matter. Airbnb's list is still a good start- ing point for local action. Many STR hosts do not have home own- ers and liability insurance to cover losses that may result from occupancy. There is a life safety issue here, and in the event of death, injury, or ' property damage, there may not be insurance coverage or sufficient assets available to cover the liability. AN OUNCE OF PREVENTION IS WORTH A POUND OF CURE So said Benjamin Franklin, and it is apt here. You need only take a few relatively easy steps to get out ahead of the potential problems with STRs and capitalize on the good that such rent- als can provide your community. Moratorium This is not a recommendation, but something worth considering. As you work down this list of ZONINGPRACTICE 10.15 AMERICAN PLANNING ASSOCIATION I page 4