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File Number: 19-218 <br />short term rentals are generally defined as the rental of any property or portion thereof for less <br />than 30 days. Short term rentals are typically advertised and booked online through various short <br />term rental listing services or rental agencies. The short term rental landlord or operator is <br />responsible for the operation, safety, and remittance of transit occupancy taxes (TOT). <br /> <br />There are two different types of short term rentals. A “hosted” short term rental is one where the <br />host or owner is present in the home while it is being rented, such as with the rental of an <br />individual bedroom. A “non-hosted” short term rental is one where the host or owner is not present <br />and the entire house or apartment unit is rented out, such as with a vacation home rental. These <br />differ from a “Bed and Breakfast,” which is defined and regulated in the City’s Zoning Code as a <br />single or multifamily dwelling converted into a formal lodging business having six or fewer rooms. <br />Analysis <br />As presented and discussed at the City Council’s December 10, 2018 work session, where there <br />was a staff presentation, public comment, and robust City Council commentary, staff comes to the <br />City Council with proposed ordinances to establish short term rental regulations. <br />As directed, and in summary, the proposed Ordinances regulate short term rentals as follows: <br />All Non-Hosted Short Term Rentals of residential dwelling units in all properties are prohibited. <br />The penalties laid out in the ordinance are as follows: <br />a)1st Notice of Violation (NOV): Misdemeanor prosecuted by City, $1000 fine or six <br />months in jail. <br />b)2nd violation: $1000 fine or six months in jail, declaration of a public nuisance, and <br />legal action by the City against host or property owner to enjoin illegal use of the <br />property, with pleading to include repayment of City’s attorneys’ fees and costs. <br />c)3rd violation within a 2 year period: $1000 fine or six months in jail, and triple <br />damages for a second or subsequent civil or criminal judgment within a 2-year <br />period, and repayment of City’s attorneys’ fees and costs. City Attorney is <br />authorized to bring without City Council approval an action for punitive damages for <br />willful violation of the Code. <br />Hosted Short Term Rentals would be allowed throughout the City, but only in residential dwelling <br />units. Hosted short term rentals would be subject to obtaining a permit, obtaining a business <br />license, and payment of transient occupancy taxes. Most importantly, they would be subject to <br />specific standards, which are listed in Section 4-40-130 of the ordinance. The standards <br />presented were culled from the December 10 work session utilizing public and City Council <br />comments and staff research of other jurisdictions, and from updated anecdotal evidence <br />gathered by staff. Notable standards include: <br />·Hosted short-term rentals are limited to a total of 120 calendar days per permit term <br />·The hosted dwelling unit must be the permittee’s primary, permanent residence <br />Page 2 City of San Leandro Printed on 4/30/2019