City Council
September 24, 2024
COMMUNITY
DEVELOPMENT
Discussion and
Overview on
Short-term Rentals
Background
2 A City Council request for a first-step staff report on Short- term Rentals (STRs).
• Provide an overview on previous STR regulation efforts. • Provide STR regulation options.
Feedback Requested: Direction on whether staff should
commence work on regulations
that would permit or expressly
prohibit STRs.
What are Short Term Rentals (STRs)?
3 Type 1
• Un-hosted Stays
• Entire unit is rented
• Owner/Renter absent
Type 2
• Hosted Stays
• A portion of unit is rented
• Owner/Renter present
• Burbank Municipal Code
generally silent on STRs.
• Approximately 300-400
unpermitted STRs.
• 174 Code Enforcement
cases for unpermitted
STRs since 2022
• Cannot levy the 10%
Transient Occupancy Tax
(TOT)on STRs.
Existing Conditions
4 Placeholder for Map
Recommendation
5 2020-2021Proposed STR Regulations
Permitted
Zones
(BMC §§
10-1-602 and
10-1-627)
Definitions
(BMC §
3-4-2803)
*STR
Regulations
(BMC §
3-4-2804)
Business
License
Regulations
(BMC §
3-4-2805)
*Host
Requirements
(BMC §
3-4-2806)
Hosting
Platform
Requirements
(BMC §
3-4-2807)
*Enforcement
(BMC §
3-4-2808) [Intentionally left
blank]
6 STR Survey of Other Cities
Permitted
Hosted(H)
Un-hosted (UH)
Anaheim UH capped at
222, no new
H & UH STRs
Pasadena H & UH
Glendale H Only
Los Angeles H & UH
Santa Monica H Only
Long Beach H & UH
West Hollywood H Only
• Apply host, platform, guest,
and operational requirements.
• Apply caps on the # of STRs,
annual booking dates, nightly
stays, and occupancy limits.
• Require safety standards and
compliance requirements.
• Include enforcement and
penalty regulations.
7 STR Survey of Other Cities – Cont’d
Both Prohibited
Hosted(H)
Un-hosted (UH)
San Gabriel
Irvine
Santa Ana
Sausalito
Arcadia
• Either actively monitor or
reactively enforce.
• If actively monitor, utilize 3rd
party system.
• Apply STR platform
responsibilities.
• Apply high penalty fines
and possible criminal or
civil actions.
8 Option 1: Permit and Regulate STRs
1. Codify STR regulations into BMC.
2. Acquire an administrative and monitoring program.
3. Collect Transient Occupancy Tax.
Permitted Zones Definitions STR Regulations Business License Regulations
Host Requirements Hosting Platform
Requirements
Enforcement [Intentionally left
blank]
Potential Structure of Regulations
Option 2: Expressly Prohibit STRs
9 1. Expressly prohibit STRs in the BMC.
2. Establish enforcement process and increase penalty
fees for violations.
--------------------------------------------------------------------------------- A. Implement a monitoring and enforcement program.
(proactive)
or
B. No monitoring/enforcement program and maintain
existing compliant-based enforcement procedures.
(reactive)
10 1. Continue to prohibit STRs by “omission.”
2. Reactive enforcement.
3. Maintain existing low penalty fees.
4. Unmonitored and unregulated STR activity.
Option 3: Status Quo
Budgetary Considerations
11 Options Expenses Revenue Sources
1. Permit and
Regulate
• Business License Processing
• Monitoring/Enforcement System
• Staff support
• TOT (10%) Collection
• Business License Fees
• Increased Penalty Fees
2a. Prohibit and
Monitor
• Monitoring/Enforcement System
• Staff support
Increased Penalty Fees
2b. Prohibit
w/out
Monitoring
Operational expenses Increased Penalty Fees
3. Status Quo Operational expenses Existing Penalty Fees 12 Pros Cons
Increase in lodging
options
Potential decreases in
housing supply
Revenue Source and
Cost Recovery Fees
vs. Neighborhood
impacts
Increased
Accountability and
Establish Responsible
Practices
Competes with existing
hospitality industry
STR Considerations
• Consistency with Housing Element goals and programs.
• Ongoing tenant protection efforts.
• Community need for short and mid-term lodging options. • Hotel projects in the pipeline.
• Nexus with recently adopted 2024-2028 Economic
Recovery Plan.
• Upcoming International events:
o 2026 World Cup matches
o 2028 Olympics Games
Recommendation
13 Additional Items to Consider
Recommendation
14 Recommendation: Option 1
Staff Recommendation:
Direct staff to commence work on a ZTA to establish STR regulations in the City:
1. Clearly defined regulations for all parties.
2. Sets process and enforcement tools.
3. Establish violation fees and potential legal action to deter bad behavior.
4. Revenue for cost recovery to offset program implementation and enforcement costs.
Regulate STRs
Contact:
Vanessa Quiroz
Senior Planner
(818) 238-5250
[email protected]
15 COMMUNITY
DEVELOPMENT
City Council
September 24, 2024
COMMUNITY
DEVELOPMENT
Discussion and
Overview on
Short-term Rentals