HomeMy WebLinkAboutStudy Session - Short Term Rental (STR) Program Update (2) TINGTA 2000 Main Street,
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File #: 24-498 MEETING DATE:-7/16/2024
Short Term Rental (STR) Program Update
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City of Huntington Beach Page 1 of 1 Printed on 7/10/2024
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Background
• Last update to City Council: March 19, 2024
• STR permits: 204 (Dec. 2023)
• 2023 TOT collection : $985,914 (hosted & unhosted)
• Unpermitted STRs decline: 867 (2020) to 135 (2023)
• Complaint calls decline
• Follow-up information requested
• Enforcement best practices
• Connection between noise & unhosted STRs
• Revenue potential & reporting
9
Permitted ort Term Rentals
,..,._,
r Permitted
w+ Short Ttenta7. .
ls °
f • Aprox. 38 /° are located
r �_�,K�I „ , City of Munlin,u n Bare
i r f r i ..air jai ,.
{ �arf t ,aid ix ota� k '
gg '"` 1�., ` within the Coastal Zone
4 i �4 J�� �� I
5 ..� {3y �f3 d.A y 1 { 4` Y i M
d{t f r4T, 44 ii �p5°,1 3 t
far 4i,1ir'er"iA �,��t- .Et ,....,..�...#+ws.4 1$"�F.la.' ""`
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�w� �a�A I�, si I L��il'rtx t�»�}qt"�)s I .�
� „F � � _ ‘‘,> • Approx. 58% are located
t
�` • ' �`xI� ` within Coastal Zone and
'' ' tA2s .Ia ``' .'f41 t-t4 E,_t� I � RMH-A (Old Tow located
Lot)
1, ,,OW ,� _• _ areas
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10
Current Requirements
• Hosted (owner-occupied) • Local contact person must be
• Citywide — unlimited (no available 24/7 to respond within
cap) 1 hour to complaints and
Unhosted (owner un-occupied) resolve
• • Zone 2 (Sunset Beach) • Obtain STR Permit; renew
• Due to annexation MOU annually
• Limited time to obtain • $1 ,000 fine each day for each
permit violation
• One STR per property owner • 3 violations within 12-month
period — results in revocation
• All marketing/listings must have
City-issued STR permit number
Enforcement Best Practices
• Staff researched how other cities operate STR programs and
met with several STR vendors.
• Third-Party Vendor:
• Monitoring: Tracking over 60 rental listing websites for
unpermitted STRs
• Compliance Letters: Sending notices to non-compliant STR
operators
• 24/7 Hotline: Phone and web support for reporting complaints
• Online Portals: Permits, registration , and remittance
• Tax Collection & Reporting : Ensuring accurate and timely TOT
collection and reporting
12
Unpermitted STs
Number of Properties without STR Permits in 2022 & 2023
500 - -
476
450
400
350 ------ 343 — ---
300
286
265
250
200 -- -
9
177
5
139 135
100
50
0
��ftiti %Al> PQc�'L ��titi ,,r''� �atiti ��de41Y V�� C�°trry'L �4al,' OQdi, >�� 3 � ��ti3 ��ati� �ti3 1� >a`, ??" cr .1Zti�
January 2022 to December 2023
City contracts with 3rd party vendor GovOS to obtain unpermitted STR data
13
Unpermitted
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135 un permitted rentals
/ -:---2,,rt:
Unpernutted •
I . Short TeiYi�Rentals
w, L.,,,,,,,,,„
ff City afHnntin tan Beach
s .-:_ , ,,,..- ..:1„,..,,,',_;:.,, ,,-, -�a-1 (Nov. 2023)
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El
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STR Data 4/1/2021 - 12/31/2023 .
1405TEti UNI4OSTED Total
Complaint Categories Citywide'Complaints Confirmed Violations/ Coffirnied Violations/'.Corttirnted'Violations/ %of Total Permits
Addresses* Addresses' Addresses
,No°OWner On- tt i 105• 49(36 Addresses) ' , - :N/A id' - 49 (36 Addresses) Rio 24%
-Noise 92 30 (19 Addresses), 19 (3 Addresses) , -49 (22 Addresses) ! 24%
��
Maintenance ; - 28 11
14(12ti
Addresses) l' 2:(2 Addresses) i 16(14 Addresses) 8%
' .
teopanc,r o 16 4(4 Addresses) 2 (2,Addresses) 6 (6 Addresses) 3%
Cortstrtrictionn I 29 i, 6,(6 Addresses) .1' 4°(3 Addresses) 1 10 (9 Addresses) 5%
fi
Parking 31 . 11 (10-Addresses) ' . 2 (2 Addresses) 13 (12 Addresses) 6%
_ ...__._ �m _.
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Trash 13 4(4 Addresses) 0 4 (4 Addresses ,
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Other 46 8 (8 Addresses) :1 (1.Address) - - 9 (9 Addresses) 4%
*Multiple Violations at Same Address .
15
•
s with
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' � � .Perim
Short Term Rentals
wnTiolatiot�5 Over 3-year program :
' City a;itzintington Bench
,, ' � 156 violations documented
: ° � � , � �r citywide between both
{
1171'1
#4,F-125..11:. ;� e� } 3� t � . _ unhosted and hosted STRs
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�=,,,,,„..„,i,,,,„, ,,,,,-...„,-,--,_, -„--,, „, . _
„„,„,
Concentration occu rri n in
g
f the downtown area and
td yq
�
� r coastal zone
d
u[uvaH u�4iu J N` iy\ E
n�uwaui.+r
16
No Owner On -site violations
. :
, .. . , ... . ,. ,
Permitted Short Tenn Rentals
w/No Owner On-Site Violations 1 • 36 STRs w/ No Owner
,
, „i, ;,„„, _ City of Hitntington Beach 1
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i \c„.04,,-- --,,, , ,,-,,— ;P r'!;'' ''' • ; '\--4
On-Site (unhosted )
,-",s, ,,.:,,,,,!,.--,,,---r,„:„....:,•,„_:___,........,„„,„..„,,,,,,,,,L,.:''.7,,,,'„,,H,,-!!,., _.,i..,if , r ,
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Violations
,,,..,,,„,,,„:„„,,,,,,_,-.,,,,,i,,..!,,,,,,,,, ,,, ir, „,,. • I,
.\ --`---- -•--\'-,,s-:.,77- . li-. --.!'.!,. .,-,:i. l'-i;':,), - N .<9
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14 n RMH-A (Oldtown/
\ . \,,,-.:,„,„_,, ,,.,,, :, ,,,...,.,,‘,,,..,,,, •,,,,,,_
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Townlots) or Downtown
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c.,
, ,,,,,,,,,„\-„, • • ,; ,,•-„,,,,,,„,,,: „_,,:,-„„„,„„„,,-..„,El e'., c.-'71:;:q::-;:-.'i; 'll Coastal Zone
, .. \,,,,„, :,.:, ,...„..., „.„. .„,, ,, ,.)/;6.1' ::.-1••-:1;:iP ,!,•'. ..r:
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17
Noise Violations
•
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Permitted Short Tenn Rentals. .
Iv/Noise Violations • 26 ST Rs w/ N o i s e
f t i=`" .!" r City ojHrtntingtan Bench
ry 1'
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Violations
-f 12 in RMHA
-, rz
\\ .7,,,,,s � � �� 3.E ; (Oldtown/Townlots) or
...,..,
- Downtown Coastal
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Zone
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18
� Cities
Comparison of Other
! n '
C��D �4O l�xs : Yes / Yes
��8 `M�8 ^ No� � |
' ' >
l
U 218klVR�O� � � 115in ��+ OO i 350in CZ; 8O0 1��jO � � 4t�rm ��lR tvoma\ i
Unlimited ' ou��oCZfor non-primary'mmq/ � Unlimited
� 1 '' ' !
' 1 ' � ' ' :
nonphn�ory ] UnUnn�edT2U�S) /
. .. � ` '
115 outside CZ |/ Unlimited primary � | 5'5U3T3 AN� ex�NB> '
' ` ' ' '
1' ` '80QT40�BA :
Existing # 445 180 165 e\ GOO iOC| primary 1.550 8.651 200
parDOl8O
STRs (650 non-primary) T1 -193
T2-2.GQ1
' T3-4.G78
T4- 1.080
�' - - ---- -/r - ---- - -- --'------ ----�r-- ---'-- ----- - ----- - -|--- - --------�r-----'----------- - - - `
' L000tOO8| � Yes ' ��8 Yes ^ Yes ^ Yes ' No No� - ' < '
Fbe8triCbOOo
CZ& Residential VROO-4subareas CZ& GTRtype CZ&total# Certain residential ^ '
| [ 1w/oapm � |! � zones
TOT iO% 12% 10% 13% 10% 10.5% 10%
— '-- r - ---'-- - --'--' - - ' - --'` - ' -----'-- - ---- - - , --- -- - -- '-
POpUlatiOn � 113,018 12.889 ' 32.4O3 � 444'095 � 81,794 ' 1.38 mil 108'537 .
�
19
oas al Zone
' •� ,,,v ti ..-.- _i___-
• STRs TOT
in Coastal Zone
ri � �f � excl . Sunset Beach : 38o-°� � vAL
• Active STRs (paid TOT in
2023): 25
[--- 1-- '3.' ,,,,
krbillil
Ld Nfileti.r.-,:',„1::
4Vrilin
yL�� �,Ft� 5. Total TOT Collected :
vy
OCEAN
f
�jh ,� $ 157,285.04
1,4„v, - ,,,/
tecL, aru
a
r��zt�a • Average Annual TOT per
STR". $6,291 40
Encom as
12 048 units
Aim
w c�sr� • p ^'
•
legend4.4 s
j-•'� City6oundary
1 Cnastal Zone
20
Sunset
.,.,
. .,, __ ___ _„,.:,„,, ____,...„,,„,„_7.,,,,,,,,,:,.„ ,, .
�J � �,,,, __,„„,,,.. ,,,,,, ,:,,_....„..... ,, ',.‘i:,.t.N., 7(4;4'. STRs in Sunset Beach : 48
y' '; ',,, t r.� x[,art .� d �" a r "
` U Active SIRs (paid TOT in
t to ; £ f' '
7 - ;`a , T\ r"', t /cam 1 2. t'�`a' t, X: '' .r°., ,?:, _-
�- �r ) f rt{ t , ,, ,„4. r.72,°n ' _,. , 2023): 34
6f ^f'J* aJ*,,+J ,+ Q` , ,,\ 0\ Y Y ,,,▪ ..1 , F y .
} l @ i
s� ,= � v� � � N� i �y Total TOT Collected :
`b ,tip , fir t s1 •
� • ' � ed
ilk .
• a �� � � \ $281 ,425.23
r �-.''.:r'rirrVrrr � r , �'' •\\,,,,-' r Average Annua
l TOT per
STR: $8,277.21
k . 4o d
u s � �' Encom.: ass ~650 units
, k' Warne
▪ z
21
•
Towniotown Areas
b.✓`' .....,�... — L .4-4' H6614P ecI' 1III,I)- g- , 1 s S 3 'r�
i Hyh,xlnol i { 1 } t i } apry l PiudnTam c,iab C,y ` i L a 1
} Ti.
1"fi Loy }g j..
i � + � S � E a
., � , �; ` ;{ � � / '1 '-- k _ ' I • Hosted STRs in Townlot &
p
�.. ,t < r '7. `�. `.` � .. i'T.\14• 7i ! ' _ _ Oldtown : 54
"'s, +''! "y *.- r` pry *r • t t,y'. fii in --r- �-^• _
l F".P/ t n� fnnil �. y F
PP • • ,:ti�, .t�1130 b - , � C !._. ;.. ( l} _► • Active STRs (paid TOT in
c.x,. �,aQ , r '`,.`- 'S ' t d r _ xbaolr k .n bro,,fG.
-�� i nay f P uhcr I 1 1 '
n � axe 2023) 37
.. ` .b ' } � —itT
l l Total TOT Collected :
0.���. f "+.,.f b 1 _ � InJlan's iicy}�4 1.3 •
L
1
� Iy 1 $209 ,208 .22
� � F 1 t
ti ; a x. F anah t o s..4,--,',F ! I
r.. ..fm 1 1 ' i
° ` ` ' ; 1 ', 'V • Average Annual TOT per
I
South , i.-
�. Lbtati6n ..-�_ .J 6 l � l STR: $5,65428, ' •
k
t ._f P fig City"""„ 3 _,, ""f ■
z... at*-.'t{ai �� 6 e -
,
__1 , � • Encompass co m a s s ~5 7 n
eG�� }
11, / „. ' 1 p 90 units
;',. cps
•
•
•
22
Actual &
. .
Townlot & Coastal Zone Sunset Beach Average Citywide -
Oldtown (Excluding (Combined 3 Estimate
Sunset Beach) . Areas) (with Avg Nightly
Rate of $305 and
.k 50°%5 occupancy)
� �tle�.x 4A ' Lei
a _
�e 4
�
Average Annual ''' $5,654.28 1 $6,291 .40 $8,277.21 � $6,740.96 $5,490
TOT per STR �, li 'I I'
Ik I.,
Unit ; Id II
I' '
i
Total TOT $209,208.22 $157,285.04 $281 ,425.23 $215,972.83 n/a
Collected (2023) _
le Examp
le p ; $1 ,130,856 ;' $1 ,258,280 1,11 $1 ,655,442 ;l, $1 ,348,192 f{ $1 ,098,000
Scenario:
, : ,
, I I
iAllow 200 STRs ' !ilRna �
'i1 „ ,
'
__ ____ _ ____ ,L. _ , ____ __ __ _ _ _ ,
• Coastal Zone + SB + Old Town/ Townlot
• 66% of 2023 actual revenue
23
•
Potential . .. .
Townlot & Coastal Zone - Sunset Beach Average (Com bined
Oldtown , (Excluding w 3 Areas)
° Sunset Beach'}
3
I Example • $1,130,856 r $1 ,258,280= • ►, �! 3
i p �, _ $1 ,655,442 � $1 ,348,192 ; .
Scenario: ! . '_
I Allow 200 STRs :1 - I I� _ . .
i.
• Range of potential revenue estimates in Coastal Zone &
Oldtown/Townlot may be conservative (based on hosted STR)
• If program expanded to allow unhosted, conversion of existing
hosted STRs would also potentially increase revenue •
•
24
Update Considerations
• Enhanced Online Portal : Improving the registration and
tax remittance process through a user-friendly online
platform
• Active Reporting : Enforcing active reporting and
implementing strict penalties for non-compliance
• Cap on STRs: Setting a cap on the number of unhosted
STRs based on specific location criteria
• Waitlist Process & Auditing : Introducing a waitlist process
for new permits and regular auditing to ensure compliance
25
Ordinance & Policies
• Types of STRs: Hosted, unhosted, primary, vacation rentals
• Strict penalties: Implementing severe penalties for non-compliance
• Maximum Cap: Limits on the number of STR permits issued
• Incentivize and require permit holders to report activity and revenue
accurately
• Location Restrictions: Designating specific areas where STRs are
allowed
• Associated to high concentrations of STR listings and greatest revenue
potential
• Enforcement Tools: Enhancing digital services, utilizing technology
like noise monitoring devices and exterior surveillance
26
Questions ?
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27
From: Kathryn Levassiur
To: 5upplementalcomml)surfcity-hb.orq
Subject: STR Study Session
Date: Friday,July 12,2024 8:48:15 AM
Attachments: LQao for ADDle Email.onq
Dear Mayor Van Der Mark and HB City council members,
Re: STR Study Session - Comments on slide, "Update Considerations"
Enhanced online portal: As point of contact for HB STR Alliance and the Airbnb
Community Leader for Huntington Beach/Sunset Beach, many hosts have reached out to me
about navigating the city's complex STR permit process. They are left angry and frustrated at
the end of the process. Then the whole process and fee amount starts all over again in a few
short months to get a new permit well before the current one expires. The city does not send
reminder notices to renew permits, leaving it up to the hosts to remember and some hosts in
Sunset Beach have lost the opportunity to renew their permits because the renewal window
slipped past them. How does the current process honor the annex MOU?
Active reporting: How to enforce reporting requirements?The smart approach would be to
require all STR booking platforms to collect TOT/TBID from all booking transactions of 30
nights or less and remit all taxes to the director's designation. Council could require hosts to
submit online monthly reports that include property address, nights booked, revenue to give
detail to the payment sums from the platforms. The booking information is easily accessible to
hosts and available online. The city and VHB will receive all tax revenue from transient stays
in HB/SB. Hosts find the STR permit process complicated, collecting TOT/TBID from guests
and remitting those funds to the city is a big requirement that is an impossible task for some.
Cap on STRs: This is a smart and reasonable approach to allowing some unhosted STRs in
HB proper, not just in Sunset. Unhosted STRs are the jewels of the city, that allow entire
families to stay together under one roof and enjoy a home like settings during their stays here.
They are well maintained and are often the most beautiful home on the block.
Waitlist Process & Auditing: Why?Does this mean a waitlist beyond a permit cap limit?
That's reasonable. What is "auditing"? Isn't that compliance.
Conclusion: I'm currently in the process of renewing my STR permit for a third time. The
statistics have shown that STRs have little impact on the city's resources and have a
significant impact on generating year over year sustainable revenue for the city. It's past time
to expand the STR ordinance to include some unhosted STRs beyond Sunset Beach, into
Huntington Beach. It's key to have the expanded STR ordinance/program up and running
smoothly before the economic opportunities of 2028 Olympics in LA begin to take shape. And
with the expanded ordinance, require all online platforms to collect TOT/TBID from all
transient booking transactions and remit all funds per the designation of the director. Make the
permit process easier for hosts and allow whole home vacation rental property owners in HB
to apply and qualify for STR permits. Please send courtesy renewal notices to existing permit
holders. Make it easier for hosts to operate STRs and more profitable for the city to benefit
from STR visitors to HB/SB. Short term rentals are good for local business.
Sincerely,
Kathryn Levassiur
Huntington Beach Short-Term Rental Alliance
Cell: 714.343.7931
Email: info@hbstra.org IWebsite: https://www.hbstra.org/
e
.\.._,.}.
SUPPLEMENTAL
COMMUNICATION
Meeting Date: 7/16/24
SS 1 (24-498)
Agenda Item No.
24-498—STR Program Update Presentation Public Comments from Long Beach Airbnb Hosting Club
July 13, 2024
Dear Mayor and Members of the Huntington Beach City Council,
Thank you for addressing the short-term rental(STR) program in Huntington Beach.The
study session presentation provided valuable insights, and I would like to highlight several
key points that I believe are essential for developing an effective STR policy for Huntington
Beach. My comments are in support of the sentiments of the Huntington Beach Short-
Term Rental Alliance.
1. Reevaluation of the Unhosted Permit Cap
The current cap of 200 unhosted permits is arbitrary and does not reflect the dynamic
nature of the housing market or the unique opportunity presented by the 2028 Olympics.
Instead, the cap should be based on a percentage of the housing stock, such as 0.75%to
1%.This approach allows for controlled growth and flexibility, ensuring that we can
accommodate visitors while maintaining the character of our neighborhoods. Rather than
a fixed number, allowing room for permit applications will enable us to adapt to changing
circumstances and demands.
2. Dispersal of Short-Term Rentals Throughout the City
STRs should be dispersed throughout Huntington Beach to support local income for small
host operators and neighborhood businesses.This strategy will foster economic growth in
various parts of the city and mitigate potential negative impacts on any single area.
3. Involvement of the California Coastal Commission
Given that Huntington Beach does not yet have an approved coastal plan, it is essential
that the California Coastal Commission is involved in any proposed changes to STR
regulations. Their input will ensure that the city's policies align with state coastal
management objectives and protect our valuable coastal resources. Approximately 38% of
Huntington's permitted STRs are located within the Coastal Zone, underscoring the
importance of the Commission's oversight.
4. Commitment to a Voluntary Collection Agreement by Online Travel Agencies
It is crucial that all online travel agencies commit to a voluntary collection agreement. This
agreement will ensure efficient and effective collection of transient occupancy taxes (TOT)
from STR operators. As the study session pointed out, last year, Huntington Beach
collected $985,914 in TOT from both hosted and unhosted STRs, demonstrating the
significant revenue potential. A voluntary collection agreement from all OTAs, not just
Airbnb,will streamline the process, ensuring compliance and fairness across the board.
1 I 2
24-498—STR Program Update Presentation Public Comments from Long Beach Airbnb Hosting Club
5.A Strong Program for the 2028 Olympics
With the 2028 Olympics on the horizon, Huntington Beach must have a robust STR
program in place.The city is expected to host the surfing competition, drawing surfing
enthusiasts from all over the world. A well-managed STR program will be crucial in
accommodating the influx of visitors, enhancing their experience, and showcasing our city
on the global stage.This preparation is essential for leveraging the economic and
reputational benefits of hosting an Olympic event.
6. Enforcement and Best Practices
Enforcement of STR regulations is vital for maintaining the quality of life in our
neighborhoods. The city has seen a decline in unpermitted STRs from 867 in 2020 to 135 in
2023,thanks to diligent enforcement. Implementing best practices such as using third-
party vendors for monitoring, compliance letters, a 24/7 hotline, and online portals for
permits, registration, and remittance can further enhance compliance and efficiency. The
registration process should be simple and streamlined, with a simple portal and
automated registration reminder notices, to support busy business owners, and ensure
awareness and adherence to the requirements.
7. Revenue Potential and Reporting
Accurate and timelyTBID collection and reporting are crucial for maximizing the revenue
potential of STRs. Enhancing the online portal for registration and tax remittance, enforcing
active reporting, and implementing strict penalties for non-compliance will ensure that the
city can capture the full economic benefits of STRs. For instance, the average annual
visitor tax per STR in Sunset Beach is $8,277.21, highlighting the significant revenue
potential.
In conclusion, by ensuring solid voluntary collection agreements from all online travel
agencies, involving the California Coastal Commission, dispersing STRs citywide, tying the
unhosted permit cap to percent of housing stock, Huntington Beach can maximize revenue
potential and create a balanced and effective STR program that benefits residents,
operators, and visitors alike.
Sincerely,
Jean Young, Leadership Team SUPPLEMENTAL
Long Beach Airbnb Hosts COMMUNICATION
visitbeautifullongbeachC@gmail.com "/16/24
562-857-2427 Meeting Date:
Agenda Item No. 1 Study Session (24-498)
2 I 2
From: Paula Shawd
To: 5uoolementalcommCalsurfcity-hb,org;City,Council(asurfcity-hb.ora fundefined:Citv.CouncilCasurfcity-hb.oral
Subject: Agenda Item 1/Short-Term Rental Program update/City Council July 16 meeting
Date: Sunday,July 14,2024 8:34:08 PM
Hello — I wanted to share feedback about the impact short term rentals (STRs) have
on a residential neighborhood. The city's policy on STRs says they should not
"threaten the character of residential neighborhoods," but in fact they do. These STRs
are removing homes from the pool of available residential housing. The people who
are staying in them are transients, they are not invested in the community and don't
contribute to the overall wellbeing of the neighborhood. It's also unfair that we, the
permanent residents, are given no say in whether our neighborhood allows STRs.
We have lived in Huntington Harbour for 20 years and during this timeframe many
homes once occupied by homeowners/families are now vacant/short term rentals.
Here's a quick (informal) snapshot of just one portion of our immediate neighborhood:
16892 Baruna Lane — Formerly a residence. Now a permitted STR but don't know if
host is living there;
16721 Phelps Lane — Formerly a residence. Now a permitted STR but host does not
live there.
4051 Davenport Drive — Formerly a residence. Now uninhabited, not on list of
permitted STRs but have seen what appear to be vacationers there very very
occasionally;
16782 Baruna Lane — Formerly a residence. Now uninhabited, not on STR list, but
have seen what appear to be vacationers there very very occasionally
In looking through the study session presentation and the accompanying email from
the STR alliance focal, the focus seems to be on revenue generated by STRs.
There's no mention of the impact on us, the residents who are stuck with an STR(s) in
our neighborhood. When we purchased our property, we did so believing — and
expecting — that we were investing in a home amidst other homes. We used to know
the families in the houses cited above, they were our neighbors and part of the fabric
of the community. Now the houses are empty except when inhabited by strangers.
How is this a positive?
A study session focusing only on the benefits of STRs, and omitting the harm they
cause to residential neighborhoods, does a disservice to the residents. Please
consider this feedback, thank you, Paula and Tarrik Shawa, 16822 Edgewater Lane.
From: Fikes.Cathy
To: Agenda Alerts
Subject: FW:HBCC July 16,2024 Study Session on Short Term Rental Program
Date: Tuesday,July 16,2024 8:55:00 AM
Attachments: 5TRs Study Session 7-16-24.odf
From: Keith.Bohr<keith.bohr@gmail.com>
Sent: Monday,July 15, 2024 8:54 PM
To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org>
Cc: Parra, Eric (PD)<EParra@hbpd.org>;Villasenor,Jennifer<JVillasenor@surfcity-hb.org>; Hopkins,
Travis<thopkins@surfcity-hb.org>
Subject: HBCC July 16, 2024 Study Session on Short Term Rental Program
Hello Mayor Van Der Mark, Mayor Pro Tern Burns and Council Members,
I have reviewed the staff's PowerPoint presentation for the subject STR presentation.
Staff's analysis of TOT revenues to date, incorporating both hosted and non-hosted STRs,
estimates that if the City Council permits 200 new non-hosted STRs,the City could expect
$1,098,000 in new annual TOT.This estimate is based on a rate of$305 per night with
approximately 50%occupancy(180 nights).
I believe this estimate is extremely conservative. I have provided the attached analysis for the
Councit's consideration,which I believe offers a more accurate"apples to apples"
comparison of projected non-hosted revenues. My projections suggest$3 million annually in
TOT based on 200 new non-hosted permits,which is 3.0 times staff's estimate.
I based my projections on an average nightly rate of$823, reflecting the current advertised rate
range of$512-$1,137 per non-summer season weekend for non hosted stays.
Thank you,
Keith Bohr, Broker
TEAM Real Estate
Huntington Beach, CA.92648
CA DRE License#01216667
714-315-2143 cell
HB City Council Study Session for July 16,2024- Regarding Short Term Rental (STR) Program Update
The spreadsheet belows represents a query on AirBnB.com for 6 guests to stay for a 3 day weekend in HB over the non summer/holiday weekend of 9/19-9/22,
none of the units are located in Sunset or on PCH, in fact all of the units are 5-9 blocks from the ocean,to minimize the inclusion of the highest end units.
Sample
Dates
Current HB 9/19-9/22 Avg Daily
Listings Bedrooms Beds Baths Guests Location (3 Nights) Rate(ADR) 3 Night Total 10%TOT
1 4 5 3 6 Sea Walk 3 $856 $2,568 $256.80
9 Blks to Bch
2 4 6 4 6 Old Town 3 $1,137 $3,411 $341.10
7 Blks to Bch
3 4 6 4 6 Old Town 3 $723 $2,169 $216.90
6 Blks to Bch
4 3 3 2 6 Old Town 3 $1,088 $3,264 $326.40
7 Blks to Bch
5 2 6 1 6 Old Town 3 $512 $1,536 $153.60
6 Blks to Bch
6 4 6 3 6 HunHar 3 $623 $1,869 $186.90
Off Water
All 6 Units
have HB STR
Permits Average $823
Total Gross
More Likely Non Hosted Average 55%Occupancy Annual Annual
Scenario 1 New Permits Daily Rate (200 Nights) Revenue 10%TOT
1 $823 200 $164,633 $16,463 3.00 Triple
100 $823 200 $16,463,333 $1,646,333
200 $823 200 $32,926,667 $3,292,667
300 $823 200 $49,390,000 $4,939,000
Total Gross
More Likely Non Hosted Average 50%Occupancy Annual Annual
Scenario 2 New Permits Daily Rate (183 Nights) Revenue 10%TOT
1 $823 183 $150,640 $15,064 2.74
100 $823 183 $15,063,950 $1,506,395
200 $823 183 $30,127,900 $3,012,790
300 $823 183 $45,191,850 r" r R" 185
Study 49.31% Total Gross
Session Non Hosted Average Occupancy(180 Annual Annual
7/16/24 Staff Report Unit Count Daily Rate Nights) Revenue 10%TOT
1 $305 180 $54,900 $5,490
200 $305 180 $10,980,000 $1,098,000
Switzer, Donna
From: Fikes, Cathy
Sent: Tuesday, July 16, 2024 3:08 PM
To: Agenda Alerts
Subject: FW: Short-Term Vacation Rentals/Study Session 24-498
From:gelliottl@socal.rr.com <gelliott1@socal.rr.com>
Sent:Tuesday,July 16, 2024 12:10 PM
To:CITY COUNCIL(INCL. CMO STAFF)<city.council@surfcity-hb.org>
Subject: Short-Term Vacation Rentals/Study Session 24-498
I've lived next door to a short-term vacation rental. The owner tried to be cooperative but was well aware
of being in violation of city ordinances and took the risk because the rewards were worth it to him.
Weekly rates exceeded monthly rents and allowed the owner to use the home at his convenience. Nice
for him, not so nice for me since the overall effect was like living next door to an international hotel and
party house. The notion that using residential homes like ATMs to help balance the city budget is
unacceptable as is the notion that owners can't make ends meet within existing 30-day minimum
rentals.This is essentially a decision to either prioritize current residents or future transients. C. Elliott
(Resident since 1980)
1