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STRICTER REGULATIONS ON SHORT TERM RENTALS: WHAT YOU NEED TO KNOW


Last year a decision that has stirred up controversy among residents and property owners alike, the city council voted to impose a ban on short-term rentals (STRs) such as Airbnb and Vrbo in single-family areas. While this move aims to address concerns regarding noise, safety, and the character of neighborhoods, it has also raised questions about the impact on local tourism and the sharing economy. This blog post delves into the details of the new regulations and their potential implications.


Ban on STRs in Single-Family Areas:

With the council's decision, the operation of STRs in single-family residential areas will become illegal, and enforcement was set to begin last December. This means that homeowners in these areas will no longer be able to rent out their entire properties or individual rooms on platforms like Airbnb or Vrbo for short stays.


Exceptions for Multi-Family Neighborhoods and Commercial Areas:

While single-family areas face a ban, multi-family neighborhoods and commercial areas will still permit the operation of STRs. This allows property owners in these zones to continue renting out their spaces on a short-term basis, although they will also have to comply with new regulations to manage these rentals effectively.


Regulations for STR Management:

The city council has approved a set of regulations to govern the management of STRs in areas where they are permitted through zoning. These regulations aim to strike a balance between accommodating the sharing economy and addressing concerns associated with short-term rentals.

  1. Mandatory Annual Registration: All STRs must register annually with the city to ensure compliance with the regulations. This process helps authorities track and manage the growing number of rental properties, maintaining better oversight and accountability.

  2. Hotel Occupancy Taxes: To level the playing field, STR operators are now required to pay hotel occupancy taxes. This measure aims to ensure that these rentals contribute to the local economy in a manner similar to traditional accommodations.

  3. Two-Strikes-and-Out Policy: The new regulations introduce a two-strikes-and-out policy for violations. This means that STR operators who receive two substantiated complaints within a specified period may face penalties, including potential revocation of their registration.

  4. Occupancy Limits and Parking Requirements: To address concerns related to overcrowding and parking congestion, the city council has set a maximum occupancy limit of 12 people for each STR. Additionally, property owners must provide at least one parking spot per bedroom to mitigate parking issues in the surrounding areas.


No Grandfather Clause for Existing STRs:

In a closely contested vote, the city council voted 8-7 against allowing current STRs to be grandfathered in, thereby preventing their continued operation. This decision has left many property owners who have been operating STRs in single-family areas frustrated and uncertain about their future.


The city council's decision to ban short-term rentals in single-family areas reflects the ongoing debate about balancing the needs and interests of residents, tourists, and the sharing economy. While the move aims to address concerns raised by the community, it also poses challenges for property owners who have invested in the STR market. The newly approved regulations for STR management aim to strike a balance, ensuring accountability and addressing potential issues associated with these rentals.


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