HomeMy WebLinkAboutCDN 2018-03-13 Item 2D - Discussion - Short-Term Rental RegulationsAllan Ekberg,
INFORMATIONAL MEMORANDUM
TO: Community Deyelopnient and Neighborhoods Committee
FROM: Jack Pace, DCD Director
BY: Charlotte Archer, Asst. City Attorney; Nora Gierloff, Deputy DCD Director;
Minnie Dhaliwal, Planning Supervisor
CC. Mayor Ekberg
DATE:
March 6, 2018
SUBJECT: Short-term Rental Regulations
ISSUE
Should Tukwila update its short-term residential rental regulations to address ADUs and single
family houses?
BACKGROUND
In conjunction with the City's discussions pertaining to detached accessory dwelling\Jnit (ADU)
n8gu|aUOnS, which began in March 2017, the City Council requested a review of the City's
regulation of short-term (defined as a period of less than thirty days) rentals within the City.
This review was intended to focus on the use of single-family and multi -family residences, as well
as both attached and detached A[)Us, for the purpose of obtaining rental income, commonly via
an online marketplace such as HomeAway, Vacation Rental By Owner ("VRBC}") or AirBnB.
Anecdotally, property owners in the City are using their residential structures for both short- and
long-term rentals on a regular basis (see Attachment A). The intention for this project was to
review and revise, where necessary, the standards for rentals.1 .
A. Existing Regulations for Short and Lona -term Rentals.
Whether a particular residential building located within the City may be used as a short-term or
long-term rental is determined by the regulations set out in Title 18 TMC Zoning Code. Currently,
multi -family dwellings shall not be used for a rental tenancy of Iess than one month. See TMC
18.06.347. There is no prohibition on the use of a multi -family dwelling as a long-term rental.
1 Beyond the scope of this analysis are the fnUmwing, which are subject to distinct regulations: Assisted
Living Facilities (TMC 18.06.058); Continuing Care Retirement Communities (TMC 18.06.178);
Convalescent/Nursing Homes (TMC 18.08.173); Correctional |nstitutions, including transitional housing
(TMC 18.06.178); Extended -Stay Hotel or Motels (TMC 18.06.287); Hotels (TMC 18.06.440); Motels (TMC
18.06.585); Secure Community Transitional Facilities (TMC 18.0}706); Senior Citizen Housing (TMC
18.06.708); Shelters (TMC 18.06.743); commercial properties used for the purposes of short-term and
extended -stay housing, such as mote|S, hnte|o, and extended stay motels.
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INFORMATIONAL MEMO
Page 2
64
There s norestriction on1he use or long-term rental.
Similarly, there is no restriction on the use of mobile home dwellings in rnobile home parks for
short- or long-term rentals. Moreover, Tukwila's current standards for attached ADUs permit the
DU
t
d
n
of
draft Aordinance .at --_.ows _---___--`=-�ADUs has aplaceholder ^'~ rentalsless
days. That could be modified based on the Council's overall decision about short-term rentals.
There are other categories of
uses that rmrentals, including:�'r`''
• Dormitories as "a residential building r use which provides housing for students,
attending an affiliated school or housing for members of a religious order."
• Boarding House defined as "a residential building which provides housingshort-term
commercia basis for tenants" is a conditiona use in the MDR and HDR zones.
r Bed and breakfast facilitiesdefined "an occupied 'dwelling
guest rooms where lodging is provided for compensation," are permitted in the LDR, MDR
and HDR zones as conditional uses (for up to twelve guests), and guests shall be limited
to a 14 -day maximum length of stay. Tukwila has never received an application for a bed
and breakfast conditional use permit.
Two other residential uses currently not identified in the TMC may also be affected by an
amendment to the City's existing regulations for short- and long-term rentals. First, adult family
homes (AFH)2 could arguably be considered residential properties used for rental purposes;
however, state law prohibits the City from enacting regulations that put up a road -block to the
placement ofAFHs in all areas zoned for residential purposes. Second, the same analysis would
likely apply to a residence used to house people with disabilities, including the recovery from a
drug addiction.'
B. �Existing Licensure Requirements for
D
TukVv|o'SResident��|Rental Business LicenseProgram,codifiedChapter5.uo
su
of the Tukwila Municipal Code (TMC), establishes an annual rental licensure requirement for all
"units" intended for rent. Each dwelling unit must be inspected for life safety issues every four
years and a Certificate of Compliance is issued by the City for those units that meet all
requirements. The code is silent about whether it applies to short-term rentals.
C. Regulation of Rentals byNeighboring Jurisdictions.
Staff analyzed the methods other cities in Washington utilize to regulate short-term rentals to
develop a proposed model for Tukwila, see Attachment B. This issue is currently being debated
in many jurisdictions in Washington in light of the dramatic recent growth of major companies in
the short-term rental industry, as well as the housing crisis in the greater Seattle area.
2 Adult family homes are defined by state law as "a residential home in which a person or persons provide
personal care, special care, room, and board to more than one but not more than six adults who are not
related by blood or marriage to the person or persons providing the services." RCW 70.128.010.
See RCW 36.70.990.
INFORMATIONAL MEMO
Page 3
(On 1' 2017, Seattle adopted new regulations to prevent property
operating short-term rentals as if they were hotels, as part of a larger effort to ensure an adequate
suppl
of
-term rental stock for the City's permanent
see Attachment C. The new
-~—'
regulations limit hosts to twdwelling unitseach requires aspeciallicense to operate said
rentals. The City also requires rental
VRBO, to obtain a special "platform license" to facilitate bookings in Seattle. In advance of
adopting these regulations, the City approved a new tax on short-term rentals, again designed to
prevent property owners from operating short-term rentals as if they were hotels,
Similarly, in October 2017, the City of Kirkland adopted Ordinance 0-4607, which regulates
rentals lasting for less than thirty days. Properties must be owner -occupied at least 245 days per
year and a "Short -Term Rental Business License" from the City is required. The use of an ADU
as a short-term rental is allowed for up to 120 days per year, as long as the property owner (or
authorized agent) occupy the primary residence for at least 245 days per year. A property
manager must live within 15 miles of the residence when residence is used for short-term rental
purposes. The City further dictates terms that must be included in the rental agreement, including
a provision that "encourages renters to exercise best efforts to avoid conflicts with neighbors
related to issues such as noise, littering, parking and trespass." The City also requires a business
license for long-term rentals, including owner -occupants with a roommate.
ANALYSIS
Council is being asked to set a policy direction on short-term rentals.
A. Advantages of Short -Term Rentals.
Given the results of Staff's search (see Attachment A), there appears to be an existing
marketplace for the short-term (defined as 29 days or less) rental of single- and multi -family
dwellings in the City. This is occurring despite the codified prohibition on the use of multi -family
dwellings for this purpose.
From a policy perspective, short-term rentals bring numerous benefits to those who operate them,
their visitors, and the surrounding neighborhood. Many individuals use short-term rentals to hep
afford their own home, either renting out a basement, a spare room, or the entire home when they
are out of town themselves. They provide a flexible means for homeowners to earn more money
than by renting out their property on a long-term basis. For visitors, short-term rentals often offer
G more affordable option, and short-term rentals bring tourists and their collective spending power
to Tukwila.
B. Disadvantages�fP8Dn�UnQShort-Term Rentals.
The rise in the use of rental properties as short-term rentals has also had negative iin
communities throughout Washington. Short-term rentals can artificially inflate rental costs, and
the more commercial use of short-term rental platforms has taken entire houses, condos and
apartments off the long-term housing market. Some short-term rentals attract disruptive visitors,
who are essentially vacationing within residential areas, and can have negative impacts on
property values. Some studies have indicated some commercialized short-term rentals impact
the hotel industry and the larger business community, by circumventing traditional lodging taxes.
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66
Short-term rentals may also contribute to creating a transient community and increase parking
demand in residential areas.
Some of these negative effects may be mitigated by only allowing rentals of rooms within owner
occupied dwellings as opposed to entire units. However, regulating the short or long-term rental
of individual rooms within an owner -occupied dwelling would be a significant expansion of the
Residential Rental Business License program. Additionally, without cooperation from the online
rental platforms it is difficult to identify properties and enforce the current short-term rental
regulations. We receive lodging tax as a lump sum and AirBnB only reports aggregate rental
data, rather than by address.
Currently, the City has no permitted Bed and Breakfast facilities. This somewhat
antiquated form of residential use, with the rise of AirBnB and other online alternatives. The City
is aware of a few Boarding Houses within the City and there are ongoing code enforcement
complaints relating to un -permitted Boarding Houses in the LDR zoning district (where this use is
prohibited). The existing definition of a Boarding House makes this regulation difficult to enforce,
given its use of undefined terms like "short-term" and "commercial basis." Similarly, there is no
cap on the number of tenants that may reside in one residential building, no requirement that the
building is owner -occupied, and no other relevant regulations such as higher parking standards.
C. Options.
With this context in mind, the City could apt to prohibit short-term rental of all dweling units within
the City, including entire single-family nesid8ncee, rooms within owner -occupied residences,
multi -family residences, ADUs (attached and detached), mobile and manufactured homes, Bed
and Breakfast facilities, and Boarding Houses.
Alternatively, the City could permit the use of some or all types of dwelling units as short-term
nanta|o, subject to restrictions such as:
(1) Iimitations on the number of ease agreements per dwelling unit;
(2) caps on the number of occupants per bedroom;
(3) the length of time the dwelling unit may be occupied by a tenant within a calendar year;
(4) require certain amount of parking stalls for the property, if used for rental purposes;
and/or
(5) owner -occupancy requirements.
As discussed briefly above, there are additional restrictions from state law on regulations for adult
family homes and inpatient substance abuse facilities. The City Attorney would craft anguage for
these uses based on the overall direction from Council.
FINANCIAL|MPACT
Allowing short-term rentals and requiring them to be licensed would modestly increase the
revenue to the Rental Housing Program. Enhanced enforcement of short-term rental restrictions
INFORMATIONAL MEMO
Page 5
RECOMMENDATION
The Council is being asked to review Tukwila's short-term residential rental regulations, chose to
allow or prohibit the different types of short-term rentals, and send the issue to the Planning
Commission for a public hearing and recommendation.
ATTACHMENTS:
A. Results of Staff Review of Rental Listings.
B. Table of Neighboring Jurisdictions' Regulation of Short-term Rental Properties
C. Regulating Short Term Rentals Seattle Policy Brief
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INFORMATIONAL MEMO
Page 6
68
ATTACHMENT A
Staff reviewed the inventory of short-term rental properties (as advertised on Craigslist,
VRE30 and AirBnB), in order to determine the scope of the existing use of these services. A
review 2017, rentalsd 35 m
offered in Tukwila, including the following:
Three bedroom home, for $149/night
Private room in single family home, for $38/night
-
Two bedroom condo,for
-
One bedroom condo,
[g85/night
Studio cabin , 0' for $55/night
Guesthouse (ADU), for $65/night
Room in single family home with private bath, for $40/night
Private room in single family house, for $56/night
Private room in three-bedroom apartment, for $60/night
'
Single family home, for $112/night
-
Detached ADU (Cottage), for $80/night
Private room in single family home, for $45/night
Two bedroom apartment, $120/night
INFORMATIONAL MEMO
Page 7
ATTACHMENT B
Neighboring Jurisdictions'
Jurisdiction
Residences
ADUs (Detached Multi -Family ,~^�^Licensure
or Attached)i Requirements
Alf any)
Poulsbo
San Juan
County
Permitted,Permitted
no more
than 34 guests per
bedroom; parking
required
Clyde Hill
Permitted, with
limits on
occupancy,
parking, and use
(for lodging only,
can't be used for
events)
|kwaco
Conditional use in
single-family, zones
with limits on
occupancy and
parking.
Leavenworth
Westport
Permitted
(attached only),
max 3 guests r
bedroom; parking
required; owner
must occupy
ADU or primary
residence
Prohibited
Relevant
Code
~—~Citations
" g
None����� ���(� � ^
18 70.070
Permitted in "Vacation SJCC
Commercial Rental Permit" 18.40.270
zone only required
Permitted, with
limitations on
occupancy,
parking, and use
(for lodging only,
't be used for
events)
Permitted use in
certain specified
zones
Permitted,
with limits on
occupancy,
parking, and
use (for
lodging only,
can't be used
for events)
Business Ch. 5.20
License CHMC
Required
Permitted use
in certain
zones
Prohibits use of
entire dwellings as
vacation rentals;
permits short-term
rental of a portion
of a home when the
property owner
lives on-site
throughout the
visitor's stay with
appropriate
permits, including a
business license
Pennitted. Prohibited
subject to owner-
000upanoy
requirement and
permitting
Permitted, subject
to occupancy cap,
parking and other
standards
Permitted, but
only 1 vacation
rental unit per
"property"
Prohibited
Business Ch. 15.41
License IMC
Required
| � '
Business
License
Required
Business
License
Required
LMC
18.52.120
Ch. 17.22
4 San Juan County Council is currently considering legislation to reduce this to two guests per bedroom.
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70
71
ao
Estimated Air8n8rental reviews in Scattic in
July 20130oNand July 2015(bounm).
Data from /nsideoirhobzom
2
72
Introduction tdti
For many years, short term home rentals have been a popular
lodging choice for travelers in Europe and certain high volume
tourist destinations in the United States. With the advent
of technology-based onlfne platforms that facilTtate the
marke0ng and booking of short term rentals, this market has
rapidy expanded across the giobe.
One need only look at the rise of two of the mjor companies
in the short term rental industry to view the incredibly fast
pace of growth. Airhnb received its hrst $20,000 seed grant
in 2009.' In December 2015, less than seven years later, the
company conhrmed a round of $1.5 bHlion in venture capital
funding, bringing its total valuation up to $25.5 biUion.z Its
website now touts more than 2 million listings available in
34.O0Ocities across 191 countries.'
HnmcAwaKanother vacation rental company that includes
the website VRBO.com (Vacation Rentals by Owner),
aunched in 2006 and also grew rapidy; the company's
website states its annual revenue increased 28.9% in 2014
over the priorycac+ Previously a publicly traded company on
the NASDAQ exchange. Homeaway was acquired by Expedia
in late 2015 for $3.9 biUion, a price nearly 20% higher than
its market value at that point.' It currently offers more than 1
million listings in 190 countries.°
No evidence suggests that the growth of this industry in
Seathe 5 any different. WhHe Seattle-speciflc data Has not
been made publicly available by mjor players in the short
term rental marketp|acc, external websites scrub Airbnb
hsdngs data and aggregate the information for market
analysis. These websites show recent rapid growth in the
number of listngs.7 Airbnb states on its website, The
number of guests using Airbnh has grown steadiy since 2009,
with visitation more than doubhnD every year."
'1g /oOcilo0d is O nice guy, he hos kept tile rent re/Qtive/y reasonable for me owl pity
pQrfper, but he's recently informed Us yVe need to leave o few rriDnth5 hCCoUSe
Scottie
Benefits
enefits an0Challenges of
Short Term
Rentals tN
Short term rentals bring numerous bencfits to those who operate thcm,
thcir visitors, and the surroundng neighborhood. Many individuals use
short term rentals as a way to help afford their own home, either renting
out a basement, a spare room, or the endre home when they are out
of town themselves. In a housing market that presents affordability
challenges, there is no doubt short term rentals alleviate the housing
burden for the many families that operate them.
For visitors, short term rentals often offer a more affordable option. Short
term rentals bring iourists, wedding pondes, visiting family members and
LhcircoUecbvespcndingpowcrtoneighborhoodsacross3caff|e.Airbnb
recently estimated the economic impact of its visitors in Seattle was $178
million from August 2O24LoJuly 2O15.supporting 17OOiobs.n
At the same time, the more commercial use of short term rental platforms
has taken entire houses, condos and apartments off of the long term
housing market. One external website estimates that roughly one-third
of Airbnb's listings in Seattle are from hosts with multiple listings. These
could be multiple rooms in a house or completely separate units; hosts
with multiple listings are more likely to be commercial operators not
renUng pordons of their own primary residence.9 Arecent report published
by CBRE Hotels' American Research found that 79 percent ofAirbnb's
revenue in Seattle comes from enOre home isdngs and the revenue
generated by hosts with multiple enUre home Iisdngs increased by 183
percent between 2015and 2O16.1f) Commercial enterprises utilizing
online rental platforms to market multiple units in multiple locations
further exacerbate the housing crisis facing Seattle.
Without regulabon, this pracUce could conUnue to rapidly expand, As a
3
73
/\
/o+ewy the City/
to
con putpursue more
units into the, long
term'/^�� ' ,f/`
market /� worth
/
. .,
exaOl/�a� /[)r).
recent Harvard Law and Policy Review article explains, "So long as
a property owner or leaseholder can rent out a room on Airbnb for
cheaper than the price of a hotel room, while earning a substantial
premium over the residential market or rent -controlled rent, there is
an overpowering incendve to Iist each unit in a building on Airbnb,..
In tight housing markets with near -zero vacancy rates, a sudden
reduction in supply naturally increases rcnts, particularly because
neither the market nor the public sector can swiftly add to the
housing stock." 11
The extent of Seathe's housing crisis is well known. Lower income
renters are being pushed further from the center city as prices
rise; home buyers face an extreme lack of ophons and strong
competition for every purchase offer.
In 2015, Mayor Murray's Housing Af±ordabHity and Livability Agenda
(HALA) taskforce put forward recommendations to achieve his goal
of 50,000 new units of housing over the next 10 years, with 20,000
of these units designated as affordable. Short term rentals are not
the leading cause of the severe shortage of housing (at all levels
of affordability), but they have exacerbated an existing crisis. Any
strategy the City can pursue to put more units into the long term
market is worth examination.
One of the recommendations from the HALA taskforce focused
onshort|crmrcniab. Specifically. the Loskforcerecommended
that the City pursue collecdng taxes on this activity and dedicating
those tax dollars to affordable housing. Currently, the City Iacks the
taxing authority to implement this recommendation. The sales tax
is collected by the State and the hotel -motel tax in Washington is
revenue carved out from the State's portion of the sales tax and
remitted to local jurisdictions; state law dictates how this revenue
can be spent. Facing this lack of opdons for new taxing authority,
we have focused on regulatory actions that would align with the
HALA goal of putting more units into the long term market.
"The only / hove rented th07�,:c311Dshort ter8?Re.ntO/S2�ice,./\irbnb,has' been
mypriO1oryFgSid8nce..Osingle forDilyhome/OCQiedinOn50 .5000 zone, the
service for iirUCSWhen / Will beO00JO3thiO/loDci ron 003/5 51000 00005 exceeded
-thirty cloys per
G,./ff[l/Orci aOd/4irBOB host
While secondary to the housing concern, short term rentals
aso pose challenges to a fair economic playing field in the
vacation market as it is unclear how many operators apply for the
necessary business license and pay all applicable taxes. Further,
many neighbors of units that have been converted to short term
rentals raise Iegihmate questions about neighborhood hvabi|ity.
Regulatory
egN0atory Systems in n
Oth
Cities
A review of the regulatory approach taken by other jurisdictions
reveals a wide range of regulatory responses. On one end of
the spectrum, some jurisdicdons have focused exclusively on
collecting the appropriate taxes that apply to short term rental
transactions. On the other end, cities ranging from New York City
to Santa Monica have enforced much stricter regulations; in New
York City, apartments cannot be rented out for Iess than 30 days.
Per a new law in Santa Monica. short term rental operators will
have to live on the property during any short term rental stay.
Other cities have attempted to find a middle ground, Philadelphia
allows for short term rentals up to 90 cumulative days a year
without a permiL, requires a permit and owner occupancy of the
unit for rentals from 90-18O cumulative days a year, and prohibits
short term rentals for more than 180 cumulative days a year. San
Jose alows short term rentals of up to 180 days a year without
a host present and year-round with a host present. Both cities
were cited byAirbnb's Public Policy Team as posidve examples for
Seattle to explore.
Taxation and Regulatory egNNatory
Context
� Seattle �-����U�����U� in ������U�V�Ne
Short term rental transacdons currnntly operate outside of a soid
regulatory framework in Seattle. Any person providing lodging
services is required to collect and remit retail sales tax, meaning that
anyone who offers their home or a pordon of their home for short
term rental should be paying this tax. Airbnb recently announced an
agreement with the Washington State Department of Revenue to
pay saes tax on behaf of its hosts, but it is unclear how many other
owners pay the retail sales tax (9.6% in Seattle) on their units if they
are not offering the units through Airbnb's website.
"Last y2cotQ/DeighbJring LOVvnhousef .6510. 0/61.5 sOlL_.One neighbor found
Lilo" the owner- /snow renting out: O///lirBe be:Ai-DOp73/Othe hOUseOOd
OpDOr8Ot/yruns //aS0D/\irE3n 1/"Vh£D/O1e0bbD8ci this; to 000Up/.:? of
friends living /i OtherpOrts Of the city two Of the/?l sold they Were: OVVQre Df
ttimilor sit-uobbas in their areas:
The Convendon and Trade Center tax (15.6% when combined
with sales tax) only applies to lodging businesses with 60 or more
units, The sales tax is the only applicable tax to a short term rental
(ransochon, because the basic hotel/motel tax in Washington State
is collected as part of the state's pordon of the sales tax and then
remitted to local jurisdictions.
The vast majority of short term rental operators do not have
business Jicenses, which are currently nequired . While most if not
0 short term rental operators would fall under the Business and
Occupa0on Tax minimum threshold of $100,000 in gross revenue,
they are stSI required to get a icense and report their revenue.
With the exception of Bed and Breakfasts, commercial lodging
(hotels and motels) are not allowed in residential zones. In single
family zones, bed and breakfasts are allowed with conditions
6
76
outlined inSeattle Municipal Code 23.44I}51.They must
have a business license, adhere todispersion requirements,
establish quiet hours, must be operated by the principa
owner and the owner must ITve on site, must no0fy neighbors,
have Iimited signage, and meet parking requirements. In
multffamily zones, bed and breakfasts have similar but Oightly
less restricdve requirements (SMC 23.45.545G).
Regulatory
egNNato0y RoNe for °
Government �������0���@�N�
����nn��mmmmmm��mmU�
While some elements of the current short term rental market
are noveH ncftiding the technology and the Sexibility it offers,
many aspects of this market are sfmpy business operations.
The City has always played a regulatory role when it comes
to business and determining what evel of operadons is
appropriate in residental areas.
Any City government reguIatons should support one of these
ihrecgoab:
Baance the economic opportunity created by short
term rentals with the need to maintain supply of
long-term rental housing stock available at a range of
prices.
Ensure a level playing field for individuals and
companies in the short term rental market.
Protect the rights and safety of owners, guests and
neighbors of these unfts.
AsexV|aincdintheBeneDtsandChoUengessrdion.ihc
first goal is the most pressing for Seattle City government.
The primary elements of the regulatory scheme proposed
below were built to address this issue. At the same bme, the
proposed regulations also either directly or ndirecty support
the second and third goals.
Primary
[) '/' `
��Nu/ng economic
opportunity while
^�^^
/��/�,�/�/ng' rental
k ` stock
Proposed Regulations f~.
�� N
r
Seattle
ttN SUL t Term
Rental tN
Operators
��������r��
�
Wfth any reguaton, one must start by deflnng the actvfty
being regulated. In this case, we are defining short term
rentals as any stays of 29 nights or fewer n duration, Stays
Ionger than 29 nights n duraton woud not be subject to this
proposal or be part of any cumulahve short term rental stay
calculations. We believe any stays of 30 nights or more 0l a
need in our housing rnarket for households in transion. One
benefit of the technology that faciHtates the marketing and
hooking of short term rentals is that it expandecl this niche in
the housing market.
-
Re��00&�
�^��n�-
�
�
Primary Residence
Short terin rental opemtor resides
Business License
Existing Requirement
Not Primary Residence
Sdor terrn rental operator resides
off-site
Business License
Existing Requirement
78
The basic proposed framework for short term rentals in
Seattle would look hke this:
You wiU be:
1. limited torenting your primary residence (including
an in-Iaw unit or backyard cottage associated wfth
your primary residence) and a maximum of one
additional dweIing unit and
2. required to register with the City and get a new
Short Term Rental Operator hcensc as well as a
business license, anexisting requirement. You will
also be subject to a few more standards, including
providing:
• proof tdat the unit is your primary residence,
• the hcense number on any short term rental listing,
• a local contact number for guests, and
• a signed declaration that the unit is up to code
This proposed limit on the number of units is designed
to meet tbe goal of maintaining our long term housing
supply.
This requirement will impact those who use these
platforms commerciaU\( not homeowners trying to make
a little extra income on the side. The proposal would
allow an exception to the proposed hmi|s for operators
of existing short-term rentals located in the Downtown,
South Lake Union, and Uptown Urban Centers (areas
where many of the City's lodging uses are located) while
not allowing this comrnercial acdvfty to expand.
We also propose leveling the regulatory playing field for
tradihonal bed and breakfasts, which still operate under
reguladons from the pre-on[ine short term rental era.
By Iessening some the regulatory hurden they currentiy
face, the City can bring traditional bed and breakfasts in
line with the new reguadons for short term rentals.
7-& /�o � � �
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w'// be those
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these / �
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-lot
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co[�[�e[c/a//y' not
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A Summary of New Regulations Facing Opera ors
Regulations / requirements
Operator's primary Operator resides
residence
off-site
Applicable policy goal
Title 5 Business License (existing
requirement)
x
x
x
Pay all applicable taxes (existing
requirement)
x
Prohibit evidence of STR use
from exterior for except for signs
as permitted by the sign code
x
x
Limit # of units to the primary
residence and one additional
dwelling unit
x
Provide proof that the dwelling
unit offered for short term rental
is their primary residence
x
NA
Provide a local contact to all,
guests x
x
Require operators declare that
the unit meets the requirements
of the Housing and Building;
Maintenance Code
x
x
•t
Require posting of basic safety
information for guests within
rental units
x
x
10
80
Proposed Regulations ���.
�� N
r
Seattle
ttN SUL t Term
Rental tN
Platforms
After surveying pracdces in otherjurisdicdons, it became clear
that receiving data from the online platform companies is vital
to an effective enforcement structure. In order to facilitate the
enforcement, the City will need to collect basic informadon from
the Short Term Rental Platforms like VRBO or Airbnb. To do
so, these companies will need to register for a new regulatory
license with the City.
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thought ' r0 very /0n,c,Ttire tio/ this was severely adding to the h0Q3iqq prob./ern
city, / 'IOci /t unfair- how people could sit 00 empty opo/1/}lents OMd rent them out for -
'income while my friends, who ore wilfins
Ori/7C0y7/8m/hi/e81yfri8ndS'VVh0orOm/i//i/ls poyOn/0Oth/yrent, C(sra fir)dQ/loffDrdQaB
OportmeOt/n.the city:
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The only requirements for the license will be
a) to provide informatlon about Seattles reguatons to
operators using the platform
b) to share basic data with the City on a quarterly basis,
including the total number of short term rentals listed on the
plafform and the totalnumbcrofnightseach|istingwasrentcd
through the short term rental platform and
c) provide booking services only with operators who have been
Concluding Remarks and
Comments on Equity
Inevitably, no citywide policy can best meet the individual
needs of every short term rental operator. The proposed
regulations detailed above attempt to strike a balance that
recognizes both the benefits and challenges offered by short
term rentals. They also attempt to focus on this issue through
an equity -based lens: while there are a variety of stakeholders
and interests in this area, those looking for an affordable
home in this city are more in need of supportive local
government intervention than those offering their second (or
third or fourth) homes to out-of-town visitors.
After these regulations are translated into legislation, they will
be vetted through the full public process of the City Council,
where input is eagerly accepted and further revisions robustly
debated.
Endnotes
' http://techcrunch.com/2009/03/04/y-comhinators-airbed-and-
breakfast-casts-a-wider-net-for-housing-rentals-as-airbnb/
2http://www.wired.com/2015/12/airbnb-confirms-1-5-billion-funding-
round-now-valued-at-25-5-billion/
rhttps://www.airbnb.com/about/about-us
4https://www.homcaway.com/info/media-center/presskit
'http://www.nyt-imes.com/2015/11/05/business/dealbook/expedia-to-
acquire-homeaway-for-3-9-billion.html?_r=0
6https://www.homeaway.com/info/about-us
'See https://www.airdna.co/sample/us/washington/seattle or http://
nsideairbnb.com/get-the-data.html
8http://blog.airbnb.com/economicimpactsinseattle/
'http://insideairbnb.com/seattle/
° https://www.ahla.com/sites/default/files/CBRE_AirbnbStudy_2017.
pdf
'-' http://harvardlpr.com/wp-content/uploads/2016/02/10.1_ 10_Lee.pdf