ADMINISTRATIVE REPORT
MEETING DATE: February 12, 2026 AGENDA CATEGORY: Deferred Business TO: Housing and Community Development Committee
FROM: Phillp Burns, Development Services Director
DATE: February 6, 2026
SUBJECT: Short Term Rental Update and Direction
The Committee will receive an update on Short-Term Rentals and the draft ordinance addressing the Short-Term Rentals.
RECOMMENDATION:
1. Direct staff to make additional changes (substantial) and bring back for further review.
2. Direct staff to make additional changes (nominal) and take to Planning Commission and City Council
3. Provide alternative direction.
BACKGROUND:
Short term rentals ( or "STRs") have been a growing staple of the tourism economy, providing an alternative from traditional hotel/motel room lodgings for travelers. Although STRs technically include a hotel room or other traditional form of overnight accommodation, the term "STR" is now usually linked to short-term stays within homes in residential areas of communities, including apartments, condominiums, single family homes, and accessory dwelling units. The common denominator is the rental is for thirty days or less. The difference is that whereas hotels are usually permitted uses within the zones they are allowed, STRs are often not permitted within residentially zoned areas of a community, which are anticipated to provide for more permanent forms of residency.
With the advent of online booking engines such as VRBO, AirBnB and HomeAway, among many others, it has become easier for property owners to list a house, condo, or apartment as a STR and manage that rental without support from more traditional property management companies. These online booking engines have also made it easier to search and book STRs. STRs can be second homes that are used by the owner during a portion of the year, investment properties without a permanent owner- occupant at any time, or rooms or portions of homes rented by the owner-occupant to make ends meet.
The increase in STR activity, especially in residential neighborhoods, has created challenges across the country. Issues ranging from noise, trash and parking to a decline in available long-term housing options are regularly cited by residents in impacted communities. Across the State of California and the United States, counties and cities are attempting to strike a balance between regulating STRs to address neighborhood compatibility and environmental concerns while recognizing property owner rights. Resort communities in particular are attempting to find that balance while also acknowledging the role that tourism economy and revenue plays in particularly the smaller resort communities. STRs can generate millions of dollars in Transient Occupancy Tax (TOT) revenue along with substantial accompanying permitting fees.
The main concerns with any land use regulation are: reasonableness and effective enforceability California municipalities currently have STR ordinances in place, including some comparable cites.
Staff will continue to gather information and look for what will work for our City that other have been able to successfully navigate.
The list demonstrates specific commonalities in STR ordinances, including:
• Separate permit required in addition to Transient Occupancy Tax certificate. • Renewal of permit required.
• Imposition of parking and trash regulations.
• Imposition of noise standards or guidelines.
• Posting of rules/regulations of permit and emergency contact information. • Requirement for a local 24-hour contact.
• Occupancy limits.
• Methodologies for enforcement and associated penalties.
As to enforcement, the ordinances range from administrative citations, nuisance abatement proceedings to the "3 Strike Rule" (3 verifiable violations during a prescribed period of time and consequences to permit occur).
Almost every ordinance reviewed to date charges a fee for the permit, thus allowing potential cost recovery of administration of the permit program. Code enforcement already has cost recovery provisions available.
The review of other municipalities also revealed that the Finance Department is not the department/division that is charged with administering or enforcing the permit program. In most cases, the department charged with these duties is the equivalent of Development Services. This is logical because the TOT ordinance addresses taxation and revenue and most if not all the above permitting regulations fall logically within building and zoning codes. Here in Bakersfield, Development Services is the logical choice for a permitting program as it has the expertise to provide permit issuance via the Planning Division and can also regulate and enforce the ordinance via the Code Enforcement Division. Additionally, the TOT taxation program is vastly different in scope than a land use permitting program. It is not advisable to merge them and, as a result, staff does not recommend that the TOT ordinance be amended to include land use regulatory permits or enforcement. A bridge can be provided in the land use regulatory ordinance to ensure compliance with the TOT ordinance.
At the October 22, 2025 Housing and Community Development Committee meeting, the Committee requested the City Attorney’s Office bring a draft STR ordinance for review. The draft STR ordinance is attached for the Committee’s review and direction.
FISCAL IMPACT:
The cost to mo nitor the STRs throughout the City could be two or three code officers, which would be $200K to $400K program if this is done in house. If the City chose to conduct an RFP to hire a firm to do the Code monitoring the compliance with the new STR ordinance, it could be done for less than $50K plus significant revenue generated from additional TOT over the life of the program. Estimated revenue is
Projected to come to the City from $800,000 to $1,200,000 annually to the City. At this point is getting an unregulated business to pay its fair share.
COUNCIL GOAL:
Economic Opportunity for All
Innovative and Efficient City Government
Safety and Resilience
ATTACHMENTS:
Draft Ordinance