Title
Short-term Rental Status Report
Recommended Action
Committee Recommendation:
Briefing only. No action requested.
City Manager Recommendation:
Briefing only. No action requested.
Report
Issue:
Staff will introduce an overall approach to addressing short-term rentals, including key policy considerations and methods for engaging the community and key stakeholders.
Staff Contact:
Stacey Ray, Senior Planner, Community Planning and Development, 360.753.8046
Presenter(s):
Leonard Bauer, Deputy Director, Community Planning and Development
Stacey Ray, Senior Planner, Community Planning and Development
Background and Analysis:
Short-term rentals are one of the best known and widely used examples of the rapidly growing sharing economy. Web-based booking services have exponentially expanded the ability for nearly anyone to participate in the vacation rental market. Some of the most commonly known online short-term rental platforms include: Airbnb, HomeStay, VRBO, and Flipkey.
A quick online search reveals that many of these platforms offer rental options in Olympia. Planners in Community Planning and Development regularly field phone calls from citizens who are interested in hosting a short-term rental. Code enforcement staff receive inquiries about properties suspected to be operating as short-term rentals.
City Councilmembers and staff have also received requests from bed and breakfast operators and hoteliers to look into a perceived regulatory and cost advantage for short-term rental operators, who don’t have the same level of local and state regulatory, tax, and licensing requirements.
Project Purpose and Intent
The city’s zoning code does not currently define a “short-term rental”. As a result, properties advertised and used as short-term rentals are not currently regulated any differently than a long-term rental property.
The purpose of this project is to take a thorough and methodical approach to formalizing an equitable process and set of rules to address short-term rentals. The intent is to establish clear and objective standards for short-term rentals that protect public interests, promote fairness, help to meet our community’s unique social and economic needs, and align with our community priorities.
Policy Decision Areas
As a new and emerging market, addressing short-term rentals doesn’t fit neatly as only a zoning issue, or only an economic development issue. Instead, it requires a broad and comprehensive analysis that takes into account such things as equity and fairness, economic opportunity, neighborhood quality, housing affordability, and community values.
Other communities similar to Olympia have already taken steps to address short-term rentals. Their processes and adopted approaches, as well as current planning and law literature provide a good framework for considering the varied policy questions:
• Defining length of stay
• On-site/off-site hosts
• Licensing and inspections
• Taxes and fees
• Equitable process (as compared to other transient rental types)
• Neighborhood impacts
• Enforcement
Proposed Approach
For this agenda item, staff will share more about an overall proposed approach to address short-term rentals in Olympia, including more detail on a proposed policy framework, a purpose and methodology for engaging the community and key stakeholders, and approximate timeframes for project milestones.
Neighborhood/Community Interests (if known):
Short-term rentals have citywide impact. In response to neighborhood interest, staff provided a briefing to the Coalition of Neighborhood Associations (CNA) in July 2017. Short-term rentals have also been raised by community members and neighborhood representatives during the Missing Middle housing discussion as being closely related to concerns about housing affordability and neighborhood character and quality.
Financial Impact:
Staff resources in Community Planning and Development have been allocated to start this work effort in 2018.
Attachments:
None