MEMORANDUM TO HOUSING AND HUMAN SERVICES COMMISSION
SUBJECT
Title
Public Hearing: Study Issue CDD 15-12: Regulating Short-term Residential Rental Units (i.e., AirBnB)
Report
Overview
The City Council ranked the study issue for short-term rentals "above the line" for 2015. Staff has been researching the issue, met with AirBnB to better understand the business side of the issue, and prepared an on-line survey for the community on the Open City Hall web page. Also, a joint study session with the City Council and Planning Commission was held to provide the members with more information about the issue, and answer questions. Concerns about the use of residential housing for short-term rentals include: neighborhood concerns about parking, safety and traffic, the potential incompatibility of allowing what is currently defined as a hotel in a residential area, and the potential loss of rental units affordable to many people in the area.
The general approach considered will be to require a permit or license from residents interested in hosting a short-term rental (defined as renting a unit for less than 30 days). In general, there are two main types of short-term rentals: hosted (where the resident lives in the unit and rents out a room), and unhosted (or whole house rental).
Staff has read about other cities and groups raising concerns that these types of short-term rentals can impact the cost of housing in areas with extensive short-term rental housing. Determining whether those findings are accurate are beyond the scope of this study, but the concern has been considered in the work to date. Santa Monica has recently considered that concern in determining how to regulate the uses. Typically, the most effective approach (short of banning the use) is to allow only short-term rental of homes that continue to be occupied by the permanent resident (hosted). In some cases, residents can offset their housing costs (e.g. rent, mortgage, utlilities) by renting ...
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