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HomeMy WebLinkAboutReview of Short-Term Rental Regulations_May 2024.pdfPage 1 of 12 A Review of Short-Term Rental Regulations All short-term rental (STR) regulations begin with: → a well-defined purpose to support the legislation → a clear definition of “short-term rental” Our purpose can be found in our guiding principles: • Maintain housing stock for year-round attainable homes (rental and ownership) • Maintain quality of life for local residents. • Safeguard communities by ensuring that STRs do not threaten character of residential neighborhoods. • Ensure that STR activities are not a nuisance, or threaten the public health, safety, or welfare of neighboring properties. • Provide residents an opportunity to generate income. • Preserve commercial property available for small businesses. • Consider ways that STRs might intentionally bolster the tourism economy. Our basic definition is that a short-term rental is typically a rental less than 30 days. Municipalities regulate short-term rentals in various ways to address concerns specific to their community’s needs. The regulations may include, but not be limited to: ● Zoning Restrictions ● Licensing and Registration Requirements ● Occupancy Limits ● Noise and Nuisance Regulations ● Host Responsibilities ● Community Input ● Penalties for Non-Compliance ● Minimum Stay Requirements ● Accessibility Standards ● Environmental and Sustainability Standards ● Taxation Pages 2 through 6 contain a brief review of municipalities resembling Southold in several key aspects: coastal setting or agricultural focus, small-town atmosphere, infrastructure constraints, and significant seasonal influx of population. Pages 7 through 9 contain a brief review of our neighbors (i.e., Greenport, Shelter Island, and Riverhead. [Please note that the data on the number of short-term rentals comes from an independent website called airdna.co.] In addition to the review of similar locales there are notable highlights from other areas including several international examples on pages 10 through 11. The review culminates with a practical framework to consider when discussing creating a short-term rental regulation for Southold on page 12. Page 2 of 12 Chatham, MA: Located on Cape Cod, Chatham is a picturesque town known for its historic architecture, beaches, and fishing industry. It shares a similar coastal setting and small-town charm with Southold. Population: 6,597 (off-season) 25,000+ (summer months) STR Listings: 542 Definition: SHORT-TERM RENTAL - A residential dwelling, or any bedroom within a dwelling, rented out using advance reservations, for a fee, for a period of not more than 31 consecutive calendar days, excluding: hotels, motels, and lodging establishments which are all licensed under separate legislation. Purpose of STR Regulation: ● Protect health, safety, and welfare of occupants of STR and the public ● Ensure that properties are being used in a manner that will not stress the towns water or sewer infrastructure, or the properties septic infrastructure ● Avoid negatively impacting the quality of life in residential neighborhoods STR Regulation Summary: ● Must obtain a Registration Certificate and register with the Board of Health ● Limited registration period prior to season, good for one calendar year. ● Must be in compliance with the applicable state and local health and safety laws, ordinances, and regulations ● Registration required annually with a fee of $50 ● Registration granted solely to an owner ● Registration not transferable and terminates upon property sale or transfer. ● Owner, operator, or agent must provide contact information, available 24/7, for emergencies and complaints, able to respond within 2 hours. ● Operator responsible for timely household trash removal. After each occupancy or once a week. ● Limited to two occupants per bedroom plus two additional occupants. ● Adequate on-site parking required; no overnight street parking allowed. ● Short-term rentals subject to reasonable inspections by town agencies. ● Board of Health may take action for violations (impose conditions, suspend, or revoke). ● Violations subject to fines ($200/day) Link to Regulations: ShortTermRental-Final-Effective-July-1_2023 (chatham-ma.gov) Page 3 of 12 Saratoga Springs, NY: Famous for its mineral springs, horse racing, and arts community, Saratoga Springs offers a blend of historic charm, natural beauty, and cultural events. It's a popular destination for visitors seeking a mix of relaxation and entertainment, particularly in the summer months. (Note: STR Regulation currently proposed and not enacted.) Population: 28,593 (off-season) 45,000+ (summer months) STR Listings: 1,500+ Definition: “Short-Term Rental” is defined for the purposes of this article to mean an entire dwelling unit, or a room, group of rooms, other living or sleeping spaces, or any other space within a dwelling, made available for rent by guests for less than thirty (30) consecutive days, where the unit is offered for tourist or transient use, including any residential building or apartment, single-family dwelling, two-family dwelling, condominium, townhouse, guest house, cottage, cabin, accessory dwelling unit or accessory dwelling. Purpose of STR Regulation: ● Foster stable residential neighborhoods, ● Prevent public safety risks and disturbances, ● Protect neighborhood character, ● Maintain property values, ● Ensure housing affordability, ● Assist homeowners with income generation, ● Accommodate visitor demand, ● Promote efficient housing stock use. STR Regulation Summary: ● Must be registered with the city - licenses are renewable on a 2-year cycle. ● Only “owner-occupied” must reside in the dwelling for a minimum of 185 days per year. ● Differentiates between “hosted” and “unhosted” rentals noting whether the owner is present/nearby or away while the property is rented. ● Permit application includes: proof of ownership, affidavit certification, site plan, proof of insurance, septic inspection report, fire inspection report, property contact, ● There is a $1000 application fee- and additional fire inspection fee. ● The maximum occupancy of the Short-Term Rental unit shall be limited by the number of bedrooms allowed for the size of the septic tank and leach or absorption area as well as the number of on-site parking spaces as outlined in the provided site plan. ● The property contact, responsible for addressing any issues related to the short-term rental, can be either the owner, a property management company hired by the owner, or an agent designated by the owner. They must be within a 25-minute car ride and available 24/7. ● Permits for short-term rentals may be suspended if the property fails to comply with regulations, pending corrective actions or resolution of violations. ● Violations subject to fines (starting at $1,000/day) Link to Regulations: Short-Term-Rental-Registry-Proposed-Legislation (saratoga-springs.org) Page 4 of 12 Fredericksburg, TX: Located in the heart of the Texas Hill Country, Fredericksburg is known for its wineries, German heritage, and scenic beauty. It shares similarities with Southold in terms of its emphasis on agriculture, tourism, and small-town hospitality. Population: 11,257 (off-season) 18,000+ (spring/fall) STR Listings: 3,200 Definition: Any structure used for transient or guest lodging accommodations, rented for compensation of a dwelling unit, which includes but is not limited to a single-family residence, townhouses, and other residential use real estate improvements, in which the public may obtain sleeping accommodations for a period less than 30 consecutive days. This term is a general definition, but the Town specifies various types of STRs include: Accessory, B&B, Bedroom, Condominium, Dwelling Unit, and Facility. Purpose of STR Regulation: ● Prevent adverse impacts on residential neighborhoods ● Ensures that rental units maintain health and safety standards ● Maintains consistency in land use, ● Protects the rights of property owners, residents, and visitors in Fredericksburg. STR Regulation Summary: ● Annual permit required. Has a unique website to guide applicants through the process. ● Must be located within the city limits and be allowed by zoning. ● Range of application fees depending on number of bedrooms and processing fee. ● Must provide a floor plan, parking plan, and photo of property. ● Maximum occupancy is 2 per bedroom, plus 2, up to a total of 12 occupants. ● Occupants' vehicles limited to the number of off-street parking spaces provided. ● A different rental permit is required for rentals over 30 consecutive days. ● The local contact person for a short-term rental must be available 24/7, responding within 30 minutes and able to be present on the premises within one hour. ● Each STR shall provide a minimum of one 96-gallon bulk garbage container capacity, or equivalent, for every six occupants, based on the maximum permitted occupancy. ● Prior to issuance of a Short-Term Rental Permit, the Operator shall allow an on-site inspection by City staff, to ensure compliance with City's ordinances and regulations. ● Upon conviction for a violation, the City Manager may suspend or revoke any permit. ● If you run a short-term rental without a permit, you can't get one for at least a year. Link to Regulations: https://library.municode.com/tx/fredericksburg/codes/code_of_ordinances?nodeId=PTIICOOR_ APXBZOOR_ENCL_S5.401ADRESHRMREUS Page 5 of 12 Charlevoix, MI: Situated on the shores of Lake Michigan, Charlevoix is a picturesque town known for its waterfront parks, marinas, and historic downtown area. It offers a similar blend of coastal charm and outdoor recreation opportunities as Southold, with an influx of visitors creating a large seasonal population. Population: 2,500 (off-season) 4,250+ (summer months) STR Listings: 506 Definition: Short Term Rental means any dwelling unit or condominium or portions thereof, in which the owner does not reside, that is available for use or is used for accommodations or lodging of guests, paying a fee or other compensation for a period of less than thirty consecutive days. The town specifies three different types of short-term rentals: personal units, business units, and accessory dwelling units. Purpose of STR Regulation: ● Regulatory ordinance enacted to balance interests of residents, business owners, visitors, and property owners. ● Renting of dwelling units benefits the local economy but also brings negative impacts to year-round neighborhood quality, housing availability, and health/safety. ● Community expects different standards for noise, occupancy, and transient activity in residential areas compared to commercial or mixed-use zones. STR Regulation Summary: ● Personal units - if owner not present then limited to 7-28 days per calendar year, if owner present and living on-site then it is unlimited. ● Business units - limited by the City Council with a cap and only in certain zones, unlimited rentals. ● STR ADUs - if constructed after 2/1/24 then unlimited days rented per year, must meet certain zoning requirements ● All short-term rental registrations and licenses expire at the end of the calendar year and must be renewed each December. ● Only one building on a property can be used as a short-term rental. ● Must provide contact information for a responsible person who is available 24/7 ● Neighboring properties within 300 feet must be informed in writing of the rental status and provided with contact details. ● Provides a Good Visitor Guide to post in the units, including emergency contact info. ● Maximum occupancy will be determined on two adult (age 13+) people per bedroom. ● One parking space per rented bedroom on site, with at least one additional space. ● First violation - license suspended for up to thirty days. Second violation within a 12- month period - license revoked and no chance at a new license for 24-month period (for location and managing agent). ● Violations subject to fines ($500/day). Link to Regulations: https://codelibrary.amlegal.com/codes/charlevoix/latest/charlevoix_mi/0- 0-0-7650 Page 6 of 12 Chatham, NY: Located in upstate New York, Chatham is a rural community with a rich history, agricultural tradition, and picturesque landscape. Chatham boasts a charming downtown area, historic architecture, and a focus on outdoor recreation, making it similar to Southold’s culturally rich small-town experience. Population: 4,150 (off-season) STR Listings: 144+ Definition: Short-Term Rental - The rental of a dwelling, dwelling unit, or other establishment to a Visitor for less than thirty days. This definition specifically excludes hotels, motels, bed and breakfasts, and inns. Purpose of STR Regulation: ● The ability for law abiding property owners to make a return on a home ● To help balance the playing field for affordable housing ● An opportunity for the Town, Village, and surrounding areas to benefit from visitors STR Regulation Summary: ● Short-Term Rental (STR) requires an annual permit from the Town of Chatham Code Enforcement Officer. ● Permit includes property owner and local contact person details, permit fee, occupancy limits, parking plan, and zoning regulations. ● STR permits are non-transferable and expire upon property ownership change. ● Different occupancy limits for STRs outside and within designated zones. ● Mandatory registration for STR owners with yearly renewal. ● Permits limited to one unit per property/property owner unless part of a farm operation. ● Owner bears responsibility for responding to complaints and legal matters; local contact may act if the owner is unavailable. ● Local contact person within 20 miles must be designated by owner and available 24/7. ● STRs must adhere to noise limits, off-street parking, secure garbage storage, and fire safety measures. ● Permit details including owner and local contact information must be displayed in STRs. ● Guests must receive a "Good Neighbor Statement" to prevent code violations and trespassing. ● Permit suspended for a year after two violations in a 6-month period or three violations in a 12-month period. ● Permit will be permanently revoked after two suspensions in the life of the permit. Link to Regulations: Welcome to TOWN OF CHATHAM, NY (chathamnewyork.us) Page 7 of 12 Greenport, NY: Population: 2,500+ STR Listings: ~295 Definition: SHORT-TERM RENTAL - Commencing on January 1, 2025, the rental of residential property or a portion thereof for a term of less than 30 days, in exchange for money, commodities, services, barter or other forms of compensation. Hotels, motels and bed-and- breakfast establishments that have been approved by the Village of Greenport in accordance with Chapter 150 are not considered short term rentals. Purpose of STR Regulation: • Prevent unsafe conditions in residential rentals. • Prevent deterioration of housing stock and creation of blight in the village. • Avoid excessive vehicle traffic, parking problems, and strains on municipal services. • Promote public health, safety, welfare, and orderly governance. STR Regulation Summary: ● Unoccupied property is presumed to be rented if not owned by the legal owner. ● No rental without a valid permit issued to the property owner. ● Permits are issued for two years and can be renewed. ● Rental registration required with a fee determined by resolution of the Board of Trustees. ● Short-term rentals are prohibited. ● Penalties include $500-$1500 for a first violation within an 18-month period, $1,000- $2,500 for a second, $1,500-$5,000 for a third. In lieu of the fine the court may require a fixed amount not exceeding double the amount of rent collected over the term of the occupancy. Link to Regulations: https://villageofgreenport.org/files-2024/VOG-5-of-2024-Rental- Properties-amendments-final-form-4886-9793-9640-v-1.pdf [Please note that this is proposed legislation with a public hearing to be held on 5/22/24.] Page 8 of 12 Shelter Island, NY: Population: 3,250+ (off-season) 12,000+ (summer months) STR Listings: 214 Definition: SHORT-TERM RENTAL - A residential dwelling, or any bedroom within a dwelling, rented out using advance reservations, for a fee, for a period of not more than 31 consecutive calendar days, excluding: hotels, motels, and lodging establishments which are all licensed under separate legislation. Purpose of STR Regulation: • Ensure safety in all rental units. • Reinstate the requirement for accessory apartments to be year-round rentals, enhancing community housing opportunities. STR Regulation Summary: • Generally prohibited for periods of 14 days or less. • Exceptions for homesteader's hardship license or limited commercial vacation rental license. • Homesteader ’s hardships is the owner's primary residence which may be rented one time in each seven-day period between and including Memorial Day weekend and Labor Day weekend and one time in every fourteen-day period at all other times pursuant to specific regulations. • A vacation rental license permits the owner to rent the licensed premises one time in any fourteen-day period. • Multiple licenses prohibited. No owner may be issued a vacation rental license if such person (or any member of his or her nuclear family) owns any interest in another property on Shelter Island for which they have already received or applied for a vacation rental license. • Corporate ownership. Any legal entity other than a natural person (including but not limited to a corporation, LLC, trust or partnership) may not be issued a vacation rental license on Shelter Island, if any owner, partner, member, settlor, trustee, beneficiary, shareholder, officer, or director of that entity already holds or has applied for a vacation rental license for another property. • Vacation rentals are permitted without limitation for the purpose of fundraising on the premises of Taylor's Island Foundation; the Nature Conservancy (Mashomack); Sylvester Manor or any other nonprofit charitable organization that seeks and obtains a waiver from the Town Board. Link to Regulations: https://ecode360.com/SH0746/laws/LF1825065.pdf Page 9 of 12 Riverhead, NY: Population: 35,900+ (off-season) STR Listings: ~300 Definition: Transient - A rental period of 29 days or less. Purpose of STR Regulation: ● A transient rental is prohibited. ● The prohibition on transient rental shall not apply to the following: any legally operating commercial hotel/motel business or bed-and-breakfast establishment operating exclusively and catering to transient clientele, that is, customers who customarily reside at these establishments for short durations for the purpose of vacationing, travel, business, recreational activities, conventions, emergencies and other activities that are customary to a commercial hotel/motel business. STR Regulation Summary: • Any property owner intending to rent the dwelling must first obtain a rental permit. • Only the property owner may obtain a Rental Permit • Failure to obtain a Rental Permit is a violation • The fee for a single rental dwelling unit is $300.00 • Permit is valid for 2 years • Tenants and the belongings of tenants are ultimately the property owners • responsibility • Rental Permits are NOT transferrable owner to owner. The new owner must register • the property within thirty (30) days of closing of title. • Prohibits “transient” rentals, defined as rental durations of 29 days or less • A Rental Permit is issued for the entire premises. Thus, if you have a single family residence, all areas of the premises are considered “the dwelling unit” for the permitting process. • First offense no less than $250.00 and no more than $1,000.00 and/or 15 days in jail o Second offense within 5 years no less than $1,000.00 and no more than $5,000.00 and/or 15 days in jail o Third and subsequent offenses within 5 years no less than $2,000.00 and no more than $5,000.00 and/or 15 days in jail. o Each subsequent week being a separate violation. Link to Regulations: https://ecode360.com/29709938 Page 10 of 12 In addition to the preceding municipalities, here are some other notable highlights: Stonington, CT: Situated along the Mystic River in southeastern Connecticut, Stonington includes a historic seaport known for its maritime heritage, museums, and quaint downtown area. It offers a mix of waterfront attractions and cultural activities similar to Southold. In 2017, the Planning and Zoning Commission decided that the town’s zoning code would not regulate short-term rentals. In 2022, they hosted community conversations to create a draft ordinance which was put to a vote in early 2023, but it ultimately did not pass. Nantucket, MA: This island destination off the coast of Massachusetts shares similarities with Southold in terms of its coastal location, small-town charm, and reliance on tourism. A May 2024 Land Court ruling in Nantucket raised questions about whether short-term rentals could be considered the primary use of homes in residential areas, prompting uncertainty about their legality. The ruling, which stemmed from a case involving a neighbor's objection to a property being used for short-term rentals, questioned whether such rentals could be considered the primary use of a home in Nantucket's residential historic district. The matter was referred back to Nantucket's zoning board of appeals to determine if rentals constitute an accessory use. West Tisbury, MA: West Tisbury shares similarities with Southold including coastal location, agricultural focus, small-town atmosphere, infrastructure limitations, and large seasonal populations. West Tisbury residents passed a new set of regulations in April 2024 that would require homeowners to register their short-term rentals with the town. The regulation is intended to cut down on corporations shadowing as LLCs from buying up properties in West Tisbury and renting them out through Airbnb and other online rental platforms. And with litigation unfolding with the town of Nantucket casting some uncertainty on the short-term rental market, proponents say the regulations would allow the short-term rentals to continue to operate. State of Massachusetts: In January 2021, Governor Charlie Baker of Massachusetts signed an economic development bill that included a provision enabling the formation of Tourism Destination Marketing Districts (TDMDs) in the state. These districts, elsewhere known as Tourism Improvement Districts (TIDs), permit hotels to add a nominal assessment fee (typically between 1 and 10 percent) to guest bills that is then invested back into local development and marketing. New York State ● Mayfield, NY - No STR rented for greater than 120 days in any given calendar year ● Mendon, NY - No STR shall abut or exist within 200 feet of the property line of a currently permitted STR ● Chatham, NY - STR permits limited to one STR unit per property/property owner unless they are part of a farm operation such as a Farm Stay Program ● Fulton, NY - Prohibits STR in nonpermanent structures (i.e. tents, trailers, RVs, and other camping units) ● Warwick, NY - No more than 2 STR permits will be issued to a landlord or absentee landlord (property owner who does not reside at the rental property and outside of the town) Page 11 of 12 ● Olive, NY - Imposes a town-wide cap on permits, also limits the amount of STRs to 1 if the owner is part-time or non-resident or 2 if the owner is a full-time resident. Some community pushback shares concerns that the seasonal homes will stay vacant for longer periods without STRs and negatively impact the local economy ● In 2016, Tompkins County became the first county in New York State to establish a tax collection agreement with Airbnb. Airbnb reports that 27 other counties in New York have established voluntary collection agreements. This is an agreement that Airbnb enters with local jurisdictions to collect occupancy taxes from guests and remit them directly to local jurisdictions. ● In 2020, Airbnb launched a City Portal to help governments manage short-term rentals. International Highlights: ● European Union: In March 2024, the European Parliament passed a regulation addressing data sharing and collection for Short-Term Rental (STR) services, crucial for European cities facing housing shortages and tourism challenges. The regulation imposes data-sharing obligations on STR platforms, aiding in enforcement of existing regulations and promoting a balanced approach to short-term rentals. The legislation benefits cities by ensuring transparency, protecting residential housing, and maintaining livability, marking a positive step forward in achieving a balanced ecosystem for STRs. ● Reykjavik, Iceland: New legislation prohibits owners of hospitality businesses from renting out residential housing for long-term stays. However, real estate owners can still lease out their homes for a maximum of 90 days per year, with earnings capped at two million ISK. Business licenses will only be issued for commercial housing or rural properties like farm guesthouses. This legislation is part of the government's initiative to boost the availability of residential housing in the capital area. ● Barcelona, Spain: Short-term rentals of less than 31 days are not allowed. A Tourist Use House license is required for stays of 30 days or more. House owners can only rent their properties for a maximum of 120 days per year. This provision aims to prevent the excessive commercialization of residential properties and preserve the availability of long-term rentals for local residents. ● Amsterdam, Netherlands: In February 2015, Amsterdam announced a cooperative effort with Airbnb in which the city would levy a tourist tax on rentals while Airbnb informed potential hosts of all rules and regulations. However, in 2018, Amsterdam limited short-term rentals to 30 days a year, halving its previous limit. Since April 1, 2021, an Airbnb host must obtain both a registration number and a permit for a vacation rental in Amsterdam. There are also strict rules about how they can operate their property, subject to stiff fines for violations. Page 12 of 12 Based on the research review and established guiding principles of the committee, consider the following framework to create a Short-Term Rental Regulation for Southold: 1. Definition and Scope: ● Clearly define what constitutes a short-term rental and consider additional definitions ● Specify the areas where short-term rentals are permitted or prohibited ● Limit the number of allowable short-term rental licenses in each area to prevent oversaturation. ● Include language indicating that the permit is a privilege, not a right, that can be revoked at any point for non-compliance with the requirements set forth in the legislation. 2. Registration and Licensing: ● Require all existing short-term rental operators to register their properties in accordance with new regulation. ● Implement a licensing system with specific eligibility criteria (e.g., owner-occupied, hosted, durational limitations, etc.) ● Determine appropriate fee based on associated costs for administration, code enforcement, and monitoring software. ● Require site plan of property including floor plans, parking, septic, waste, and amenities. ● Require a contact person or entity that is accessible 24/7 to deal with on-site issues, and able to physically respond within a specific time frame (e.g. 30 minutes). 3. Safety and Building Standards: ● Mandate adherence to safety and building standards to ensure the protection of guests and neighboring properties. ● Set occupancy limits to discourage large-scale short-term rental operations ● Environmental and Sustainability measures - trash, recycling, water, septic, etc. 4. Quality of Life Measures: ● Implement measures to ensure that short-term rentals do not disrupt the quality of life for permanent residents, including enforcement of property maintenance standards. ● Enforce noise ordinances and regulations to prevent disturbances caused by short-term rentals, especially during late hours. ● Prohibit disruptive behavior that may disturb the peace and tranquility of residential neighborhoods. ● Provide a “Good Neighbor Guidebook” and require signage in the STR units. ● Inform adjacent property owners and provide contact details for addressing any issues. 5. Economic Opportunities: ● Encourage local residents to explore alternative forms of income generation that do not rely on short-term rentals. ● Promote long-term rental options and homeownership as viable alternatives to short- term rentals. 6. Enforcement and Compliance: ● Designate a dedicated regulatory authority responsible for enforcing STR regulations and conducting regular inspections to ensure compliance. ● Implement penalties for non-compliance with regulations, including fines, license revocation, or legal action if necessary.