SHORT TERM RENTALS February 15, 2018

2017 STATISTICS FOR RWC RENTALS 380 Active Hosts 6 nights is the average length of stay per guests $12,200 typical annual host earnings 51% of listings are for the entire home 43% are for private rooms, with an additional 5% for shared Source: Airbnb December 2017

ORDINANCE OBJECTIVES Allow limited short-term rental uses while preventing the loss of housing stock, and Preserve residential character and establish operating standards to reduce potential noise, parking, traffic, property maintenance and safety impacts on adjacent neighbors; and Provide a registration mechanism for the City to track and enforce these requirements as needed and ensure appropriate collection of transient occupancy taxes.

PROPOSED REGULATIONS Allow Limited Short Term Rentals While Preventing Housing Stock Loss PRIMARY RESIDENCE - Short term rentals are only allowed in primary residences, where the homeowner usually lives. This limitation applies only to rentals of less than 30 days, month-to-month leases and longer leases continue to be allowed. LIMITED NUMBER OF NIGHTS –Unhosted rentals are limited to 120 days a year. No limit to the number of nights if the host remains on-site.

PROPOSED REGULATIONS Preserving Residential Character PROHIBITION ON SPECIAL EVENTS – Weddings, corporate events, and other similar events are prohibited as part of a short-term rental activity. ON-SITE PARKING – On-site parking must be made available for the short term renters. LOCAL CONTACT PERSON – The host must designate a local contact person that can respond and take remedial action on complaints during the term of any stay. NUMBER OF LISTINGS –Limiting number of listings to two for the same night in the same dwelling

PROPOSED REGULATIONS Registration and TOT Collections REGISTRATION - Require registration of all short term rentals by January 2019. TRANSIENT OCCUPANCY TAX – Clarify that short-term rentals require hosts to pay TOT. Work with hosting platforms to obtain Voluntary Collection Agreements (VCAs) to assist with collecting TOT. DEDICATE FUNDS TO AFFORDABLE HOUSING – This recommendation includes a resolution dedicating short-term rental TOT to affordable housing programs and admin.

CONVERSATIONS WITH AIRBNB Airbnb makes up over 80% of our listings. Contacted them several months prior to the public hearings. They provided some generalized data for our presentation. MELISSA Will add more notes/modify this slide

VOLUNTARY COLLECTION AGREEMENT Currently working on a Voluntary Collection Agreement Reporting and auditing data will be aggregated (not personally identifiable) No discussion to date regarding reporting for enforcement – being pursued through other software registration mechanisms. MELISSA Will add more notes/modify this slide

TIMELINE EARLY2018 MAR 2020 JAN 2018 MAR 2019 All short term rentals must be registered. City Council Adoption STAFF PREPARES REGISTRATION PROCESS CC HEARING ONE YEAR CHECK-IN AMNESTY PERIOD ENDS JAN 2018 MAR 2019 Staff develops an easy-to-use process for property owners to register short term rentals. Staff returns to Council for a one-year check-in.