short term rentals...• hotels/motels • bed and breakfast inns • country inns • vacation...

Short Term RentalsVIRGINIA BEACH CITY COUNCIL

NOVEMBER 7, 2017

Mark D. StilesCity Attorney

- DRAFT -

Overview• Background

• Community Involvement

• Legislative History

• Alternatives for Consideration

• Next Steps

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BackgroundCity is a tourist destination and multiple short-term* lodging options have historically been available:

• Hotels/Motels• Bed and Breakfast Inns• Country Inns• Vacation Rentals in residential dwellings

* The Commonwealth of Virginia defines a short-term rental as any lodging provided for a period of 30 consecutive days or less.

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Background (cont’d)

City regulation of short-term lodging must address multiple public concerns:

• Public health, safety and welfare (building codes and inspections)

• Fair taxation (transient occupancy tax (“TOT”))

• Planning and zoning compatibility (zoning ordinance)

While “vacation rentals” in residential structures is a long-standing practice, these short-term rentals are neither a permitted nor conditional use in the City Zoning Ordinance.

The advent of online rental platforms (Airbnb, etc.) and the emergence of large single-family homes developed and/or increasingly utilized for the purpose of hosting large events have focused attention on zoning regulations.

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Beaches and Waterways Commission• By resolution dated April 19, 2016 City Council charged the

Beaches and Waterways Commission with investigating and making recommendations regarding “event houses.”

• Between May 12 and July 27, 2016, Beaches and Waterways held several public meetings, including 5 public hearings at locations throughout the City.

• Proposed a draft ordinance designed to curb the potential disruption caused by “event homes” on the neighborhood in which they resided.

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Recommendations: Beaches and WaterwaysPermit required for an “event”.

• 2 per year;• Special event permit if more than 50 people, but no event shall have

more than 100 people;• Notification to all adjacent property owners of special events;• Requirements for parking; liability insurance; employment of an off-

duty police officer; and a certification from building and zoning that the property is in compliance.

These requirements covered many of the issues affecting short-term rentals - parking, trash, noise, etc.

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Online Home Sharing Ad Hoc CommitteeBy resolution dated August 16, 2016 City Council created the Online Home Sharing Ad Hoc Committee.

● Charged with investigating and making recommendations to City Council concerning: Legislation pending in the General Assembly in regard to short-term

rentals; and City’s regulation of short-term rentals.

Met in September and October 2016, and presented their findings to City Council in November 2016.

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Recommendations: Legislation• Short-term rentals cannot be eliminated.

• Taxes should be paid to the locality.

• Require appropriate insurance coverage.

• Grant local authority to promulgate health and safety regulations.

• Protect the neighborhoods.

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Recommendations: City Code Amendments• Distinguish between “daily” – less than 7 days and “short-term”

– 7 to 29 days.• Rentals need to be at least 7 days.• Registration with the Commissioner for taxes.• A responsible party is required who can report in a reasonable

time and has the authority to correct a situation.• Maximum occupancy requirements.• Parking on-site.• Post text of applicable City Code provisions in the rental.• Liability insurance of $1 million dollars.

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Legislative HistoryCity Council adopted an ordinance in August of 2016 requiring that all short-term rental properties be registered with the Commissioner of the Revenue and providing penalties for failure to register.

• Purpose: to facilitate identification of short-term rental properties and collection of transient occupancy tax.

• Properties represented by local real estate agencies and registered by those agencies exempted from new registration requirement.

July 1, 2017 the local ordinance was amended to comply with the legislation passed by the General Assembly:

• Contact person should be named for each rental.

• Real estate professionals still exempt.

• Registration can be withdrawn.

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Where Are We Today?• The City has continued to meet with interested citizens and

incorporate their input into the discussion; however, there is not a consensus about the best way to regulate short-term rentals.

• The three (3) alternate ordinances that follow include many of the recommendations that have come out of these public sessions.

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Short-Term Rental Ordinance MatrixAlternative 1 Alternative 2 Alternative 3

Distinguish Home Sharing From Short Term Rental

Yes Yes No

Short Term Rental Overlay Districts (STROD)

Yes No No

Grandfathering Provisions No Yes No

Home Sharing

Short Term Rental

Home Sharing

Short Term Rental

Short Term Rental

By Right Use Yes No, unless in STROD Yes

No, unless previouslypaid TOT

(grandfathered)

Accessory Use

CUP Required No Yes, unless in STROD No

Yes, unless previously paid TOT

(grandfathered)

No

Registration Req. Yes Yes Yes Yes Yes

Payment of TOT Yes Yes Yes Yes Yes

Parking Must Be Provided On Site Yes Yes Yes Yes Yes

Post City Code Provisions Yes Yes Yes Yes Yes

Trash in Automated Bins Yes Yes Yes Yes Yes

One rental contract per 7-day period Yes Yes Yes Yes Yes

$1 Million Insurance Yes Yes Yes Yes Yes

Maximum Occ. Limitation No Yes No Yes Yes

Sign permitted No Yes No Yes Yes

Contact Person Req'd Yes Yes Yes Yes Yes

Special Event Permit for groups > 50 (100 max.)(3 per year)

No Yes No Yes Yes

Short-Term Rentals

Alternatives for Consideration

Home sharing. A dwelling in which a room or rooms are offered for rental for compensation for a period of thirty (30) consecutive days or less by an owner who utilizes the dwelling as his principal residence and occupies the dwelling during any such rental period.

Short-term rental. A dwelling that does not meet the definition of home sharing in which a room or rooms, or the entire dwelling are rented for thirty (30) consecutive days or less for compensation.

Home Sharing vs. Short-Term Rental

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Alternative 1

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Alternative 2

Any short term rental that has paid transient occupancy taxes to theCommissioner of the Revenue prior to January 1, 2017 shall be consideredgrandfathered and shall not be required to obtain a Conditional Use Permitwhere otherwise required, but must meet the conditions of section 241.2.Any expansion of the footprint of the dwelling housing the short term rentalshall repeal the grandfathered status of the short term rental and require aconditional use permit for such use;

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Alternative 3

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Registration & Payment of TOT

Home Sharing Short-Term Rental Home Occupation

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Onsite Parking

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Posting City Code Provisions


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Refuse Requirement

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Rental Period


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The owner shall provide proof of liability insurance applicable to the rental activity of at least one million dollars ($1,000,000.00) underwritten by insurers acceptable to the city:

Insurance Requirement


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Occupancy Limitation

Home Sharing

No Limitation

Short-Term Rental Home Occupation

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Sign Use

Home Sharing

No Sign Permitted


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Home Sharing

Short Term Rental & Home Occupation

Contact Requirement


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Special Event Permit Requirement

Home Sharing

No Limitation


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Next StepsIf the 3 alternatives are referred to the Planning Commission today, the proposed schedule would be as follows:

November 8 Planning Commission briefing

December 4 Planning Commission workshop

December 13 Planning Commission public hearing and vote

January 2, 2018 City Council public hearing and vote

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