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Home My WebLink AboutShort Term Rentals Summer Recap 'y 2000 Main Street, I \ Huntington Beach, CA n � City of Huntington Beach 92648 T� Y - v File #: 22-731 MEETING DATE: 10/4/2022 Short Term Rentals Summer Recap City of Huntington Beach Page 1 of 1 Printed on 9/28/2022 poweredtq,Legistar" %flNG 45, D ��'�RP � RArFO Short Rental uSession Community Development 'l�i� October 4 2022 • 17, 909 0 1 OO� / C V v NT 1 Background • September 3, 2019 — City Council Study Session on short- term rentals (STRs) • Four coastal cities were studied (Carlsbad, Carpinteria, Newport Beach, and Pismo Beach), as well as the range of approaches in regulating short-term rentals in the coastal 1 ' zone • Staff conducted community outreach and additional research; returned to Council one year later • Council expressed a desire for a high threshold type of regulation Background • February 19, 2021 — Short Term Rental (STR) Ordinance became effective; Sunset Beach operators were given 6 months from fee resolution adoption (through July 2021) to retain "Un-hosted" rights • Summer 2021 — Ad Hoc Committee was created to receive additional input from interested parties • November 2, 2021 — City Council approved an amendment to the STR Ordinance to allow owners in Sunset Beach to obtain an Un-hosted STR Permit by March 1, 2022 • After this date, all new STR Permits must be hosted IM HomeAway tripadvisor V " airbnb Permits Issued & Transacted Snort-Term Rental Program As of June 30, 2022 200 r 169 150 Yc �f permits 100 88 98 r.0 50 w . 0 Q4 2021 Q1 2021 Q2 2022 —Total Permits Issued —Total Permits Transacted Perm 'Its ---Issued Short Term Rental Location Density City ofIlunfinglon Bench 14 r I_ ,. �i ryry i i I r��, :71�`..gr �.✓ I c r r I , f F� 1 k � i t^ I l' a7 l r sh . ors :yy; t i 1_ 't-9. ram.--- . i O'Yq 'R.- tj rJ , 77 .e..c...x C ■ Revenue Data Total Revenue Received (through August 2022) For Q1 and Q2 of 2022 Unhosted Revenue Hosted Revenue Total Revenue TBID Assessment $42,723 $67,475 $110,198 (4%): TOT Tax (10%): $106,805 $169,545 (E61350 Total Revenue: $149,528 $236,160 $385,688 Cmity Revenue Data Revenue Collection Schedule City TOT Revenue by Quarter Q4 = Oct-Nov 2021 )120,000 $108,176 (due Jan 2022) )100,000 Q1 = Jan-Mar 2022 80 000 $71.,531 (due April 2022) $60,509 Q2 = Apr — June 2022 $60,000 `` (due July 2022) $40,000 $35,274 $20,000 $860 $0 $0 Q4 2021 Q1 2022 Q2 2022 Hosted Unhosted STR "Average ally Rate Average Daily Rate per Quarter 2500 2000 $1,834 1500 1,088 1000 500 430 0 98 Q4 2021 Q1 2022 Q2 2022 Total Transacted Permits - Average Daily Rate Revenue Data 9 SFRs Top Ten Revenue 1 Multi- Family Half Hosted / Generating Unhosted STR Properties 25% of Tota I Revenue +j �.t Unpermmitted STRs Number of Properties without STR Permits 500 476 450 400 350 343 KOJI 300 286 250 200 195 150 139 100 50 0 January March May July September ■ Complaint STR Code Enforcement Data 1/1/2022 - 9/12/2022 140 122 120 ■ Total Complaints ■ Total Properties 100 Total Investigations 80 Confirmed Addresses in Violation 60 ■ Confirmed Violations 43 45 45 40 25 20 11 7 5 4 5 Isle Hosted Unhosted Complaint Data STR Code Enforcement19/12/2022 Hosted Unhosted Total Complaint Citywide % of Total (Confirmed (Confirmed Confirmed Categories Complaints Permits Violations) Violations) Violations No Owner On- . . Site Noise26 10 1 11 7% LVIFT in 6 - 1 5 3% Occupancy5 4 0 4 2% Construction16 3 1 4 2% Parking16 3 1 4 2% rash5 2 0 2 1% Other1 0 1 1 <1% Conf'ir ed V'Iolati' ons - Short Term Rental _ Confirmed Violation Density R' f City of H—r-gron Reach r J •..' .. n we 77 rl '' G. ,xi'pr�G. .•1 t Complaint Data • Hosted: 4 STIR properties cited for no owner on-site (out of 25 properties) • Unhosted: no citations issued • 2 Hosted STRs have elected to cancel their STIR Permits based on Code Enforcement investigations efforts • 1 Hosted STIR decided to voluntarily cancel their STIR Permit • Violations of permitted STRs can be reported 24/7 at 714-375-5155, option "3" Summary • Program is still stabilizing • Both hosted and unhosted STRs are generating revenue • Nuisance complaints are minimal • No correlation between unhosted STRs and confirmed violations Quest 'ions z n.- zw� Switzer, Donna From: Alan Averill Gmail <alanaveri1177@gmail.com> Sent: Tuesday, October 4, 2022 10:06 AM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members,We hope you will continue to be open to allowing responsible home owners utilize their homes for AIRBNB. I am a firefighter for Los Angeles and the income we receive allows me to be home with my family.Thank you and God bless Sincerely, Have A Blessed Day, Alan Averill COMMUNICATION Mee*V Date: Agenda ban No.: Switzer, Donna From: Tennis Fan <jpauljew@hotmail.com> Sent: Tuesday, October 4, 2022 10:09 AM To: supplementalcomm@surfcity-hb.org;Tennis Fan Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, was approved for my STR permit in June. It was a little late In the year to schedule tenants. However, all inquiries I received (5)cancelled as soon as I informed them that my home was a "Hosted" rental. It seems no one was interested even though they had the whole house except 1 bedroom. Please consider approving unhosted rentals. I am happy to charge and pay the 14%taxes to the city. So far, I have had no rentals this year. Sincerely, Judy Jew SUPPLEMENTAL COM, MUNICATION meeting Data:— agenda Item Pia.: dIv02 Switzer, Donna From: Alex Barton <werbarton@mac.com> Sent: Tuesday, October 4, 2022 10:37 AM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, Hosting our STIR has become very rewarding. I love being a host to our incredible city.The beach belongs to everyone in HB.There are no homes staking claim to the view and obstructing the miles of sandy beach and expansive Pacific Ocean.This is a special place to be and with all the events, shopping, restaurants and natural beauty I can see why so many travelers make their way here. I welcome them wholeheartedly and direct guests to local places that my husband and I love and frequent. Guests that have stayed with us this year have attended weddings, come for events, or just a much needed beach break. Bringing family and friends together to create memories in HB is truly wonderful. Thank you for listening to the community and helping residents be able to host people from everywhere enjoy our amazing city. Sincerely, Alex Barton SUPPLEMENTAL COMMUNICATION Meefing Date: /0/Z/AZ ,Agenda Item No.* ;0,2 Switzer, Donna From: DJ Norman <dauidinorman@gmail.com> Sent: Tuesday, October 4, 2022 10:43 AM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, Thank you for your time in reading these comments. My family has been a Short Term Rental (STR) customer for many years and STR owner for a year in Huntington Beach. Being a customer has allowed my family to enjoy memories together in our coastal community and around the country in a safe, private and clean environment. As a STR owner it has given my family the ability to promote our coastal community and businesses with families from around the world. We have curated experiences and shared our knowledge of local sites, restaurants and our course our beach areas. This provides revenue for the city and local businesses. We have also provided rentals to our neighbors and their extended families. I believe that STRs close a gap in the travel industry. Without STRs I believe our city would lose revenue. I also believe STR owners increase local property values by maintaining our properties to a higher standard, which in turn keep small local business owners in business (ex: house keepers,handyman services, contractors,pool cleaners, Gardners, etc) . I ask that each city council member find ways to support STRs and open up these new channels of commerce to keep Huntington Beach a destination vacation area to be enjoyed by travelers world wide for years to come. Sincerely, DJ Norman 10 year HB Resident 1 year STR owner Sent via DYs Samsung.Please excuse any typos. SUPPLEMENTAL AMUNICATION Meetlng Date:._. /0 LI ZZ- #� Agenda Item W. "o'�"'"', � J Switzer, Donna From: Kathryn Levassiur <levassiurk@gmail.com> Sent: Tuesday, October 4, 2022 10:58 AM To: supplementalcomm@surfcity-hb.org Subject: Public Comment for STR Study Session 101412022 Dear Mayor Delgleize and Huntington Beach City Council members, This is a public comment for the STR study session today. My name is Kathryn Levassiur. My husband Al and I have been residents of Huntington Beach for 23 years. I often speak on behalf of Huntington Beach Short Term Rental Alliance and also lead the Facebook group for Orange County CA Airbnb hosts. We have been renting spare rooms in our home on Airbnb since 2015. As a City of HB STR permit holder, I wanted to give you the perspective on how the permit program has worked for me personally. The process of getting the permit was relatively easy and I was able to complete the application process entirely online. The idea of posting my permit outside and the internal signage requirements inside the home have been non-issues. My concerns about collecting the TOT/TBID from my guests after they arrived was made easy with Airbnb Pro Tools,which is free. Airbnb sweeps the TOT/TBID from reservations during booking transactions. It was the collection of the taxes from my guests that was concerning. Remitting the visitor generated tax monies is pretty easy on the MuniRevs website. Looking at the deck presentation for today's study session,two things stand out for me. One is the amount of tax revenue the city has received from visitors staying in STRs and paying the local taxes. Not one of my guests has ever uttered a syllable to me about paying the 14% lodging taxes. There's more tax revenue to be had, if the city were not to have so restrictive an ordinance and allow permitted and unhosted STRs in Huntington Beach. The second fact in the deck presentation, is the number of STR complaints the city has received,with the majority of complaints simply being for unhosted STRs where the owner is not on site and not for any other nuisance issues mentioned. It tells me that STRs are not a problem! The HB City Council has upended the lives of many voting/tax paying/property owning STR residents by blocking them from applying for STR permits. Please consider allowing owners of unhosted STRs to apply for permits. Council considerations on how to control the number of unhosted permits in the city is to limit permits to one per person and allow everywhere in Huntington Beach. Other requirements to consider would be decibel monitors, cameras, smart locks. Bottom line: Would I live next door to a short term rental, or even between two STRs? Most definitely YES! Sincerely, Kathryn Levassiur Huntington Beach Short-Term Rental Alliance Cell:714.343.7931 Email: info hbstra.org lWebsite: https://www.hbstra.org/ SUPPLEMENTAL COMMUNICATION Meeting Date: Agenda Item No.: 22-- 76J Switzer, Donna From: J He <jhe999@gmail.com> Sent: Tuesday, October 4, 2022 11:02 AM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, I think Huntington Beach,with one of the best beaches in the country, has the potential of being a star among the tourism destinations. Everyone knows about Hawaii and probably has spent vacations there. Not everyone knows about the beautiful beaches of our city or has visited us. I think it is strategic for the city to grow in the tourism industry. It'd be great if we became Hawaii on the mainland. To achieve that,having safe, clean, and affordable lodging is a critical component. STR provides a wide range of accommodations in addition to the hotels. The majority of STR operators are running their rentals as a serious effort to provide hospitality to their guests. I support the city's effort to regulate STR to guarantee that. Meanwhile, I do think that the un-hosted zone should also include the downtown areas which is the major attraction of tourists in the city. The downtown area just have more shops, restaurants, and things to do for tourists. Imagine the convenience of being able to walk to their rental from the shopping area and the pier! In fact the downtown area is really the main beach area and is already an area with a lot of second homes and vacation homes. I think it's just natural to allow un-hosted rentals in the area. What we'll get is not only the TOT taxes, but also growth of tourism income in general, which I believe aligns with the short and long term goal of the city. Sincerely, Jie He SUPPLEMENTAL COMMUNICATION Mee"Date: /d l L11Z 2.�� Agenda Item No.°1�— z 122 -7-3 j 1 Switzer, Donna From: Michael FAHIM <michaelfahim@verizon.net> Sent: Tuesday, October 4, 2022 11:49 AM To: supplementalcomm@surfcity-hb.org Cc: Michael Fahim Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, I would like to note that Un hosted STRs have fewer complaints and less violations than a hosted STRs. Guests do not need a host to be at the STR to behave and not cause issues.The study conducted shows more income to the city and less complaints with un hosted STRs. We need to comply with the costal commission for the opportunity for everyone to enjoy the costal lifestyle. Sincerely, Michael Fahim SUPPLEMENTAL COMMUNICATION 2 Date.--, z . .._. Agenda Item No.° J� i Switzer, Donna From: Maoz Raz <maozraz@me.com> Sent: Tuesday, October 4, 2022 12:21 PM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, I would like to inform you that I support taxed and regulated STRs in Huntington Beach. Sincerely, Maoz Raz Sent from my Whone SUPPLEMENTAL COMMUNICATION Meeffrag Date:-ID L/ 2 Z. � Benda Item No., Z Switzer, Donna From: Mirta Seitz <mirtad1@icloud.com> Sent: Tuesday, October 4, 2022 1:26 PM To: supplementalcomm@surfcity-hb.org Subject: STR Study Session Comment Dear Mayor Delgleize and HB City Council members, My name is Mirta Seitz, I have a short-term Rental (STR) in HB with permit number 2021-0078. 1 believe the guests that visits the STIR properties are bringing a considerable amount of money to the city. The money they spend at restaurants shopping malls, and entertainment together with 14%taxes, should not be underestimated. Please reconsider allowing also permits for the unhosted STR in the city. Respectfully Mirta Seitz mirtadl@yahoo.com Sent from my Whone SUFTLEMENTAL COMMUNICATION Mesbng Date._ Agerda Item NO., �7I. ./,'2 S