Short Term Rentals
Program Update
TOWN OF FAIRFAX, CALIFORNIA
TOWN COUNCIL, JULY 22, 2026
Range of Options for STR
Regulations
Outright Ban
STRs not permitted anywhere
No HUT revenue
STRs persist due to inadequate
code enforcement
No Regulation
Allowed everywhere
No registration required
No code enforcement
No HUT revenue
Fairfax Target
Allow some STRs
Regulations to protect neighbors
Registration required
Some revenue (Hotel User Tax)
Active code enforcement
Short Term Rental Program
Works in conjunction with zoning,
focused on licensing
Occupancy requirements
Permitted: STR host = permanent
resident of unit (“hosted”)
Not-permitted: Investor owned or if
owner lives elsewhere (“non-hosted”)
Short Term Rental Program
Registration
Annual registration required
Status
15 current registrations
22 lapsed registrations
31 not registered
New listings appear frequently
Enforcement Process
Enforcement Activities to date
Letter sent encouraging registrations (up to three letters) 17 denials (could not qualify under zoning and/or residency requirement)
Three warning letters to all hosts (when address
determined)
Have not initiated code enforcement beyond warning
letters
Collection Agreement with AirBnB
Benefits
AirBnB collects Hotel User’s Tax from hosts using platform AirBnB represents 90% of all host in Fairfax
Generates more than $100,000 per year in HUT
Downsides
Still need a registration system for short-term rentals Some AirBnB short-term rental may not be able to legally operate under Fairfax rules (e.g. investor owned, not
permitted)
HUT collection system needed non-AirBnB hosts
Hotel User’s Tax (HUT) Collections
2023 2024 2025 2026 2027
with AirBnB assist.
Fairfax Inn (est.) $16,000 $16,000 $16,000 $16,000 $16,000 STR (Town portal) -- $2,000 $11,000 $8,000* $2,000*
STR (AirBnB) -- -- -- $40,000 $82,000
Total HUT $16,000 $18,000 $27,000 $64,000 $100,000**
* AirBnB to start collecting HUT on August 1 & collection through portal is non-AirBnB hosts only ** Highly variable – could approach $200,000 or be reduced if illegal STRs drop-off Top 2 Hosts
Fairfax has two prolific short-term rentals hosts that have not registered
#1 (Maggie) – up to $165,160 is potential revenue (up to $16k in HUT) #2 (Paul) – up to $119,548 in potential revenue (up to $12k in HUT) (note that 3 of the top 5 hosts are registered)
Code Enforcement so far – letters
Anticipated code enforcement
Determination of full HUT past due (Deckard est.)
Citations issued with requests for full HUT payment
Continuous follow-up until resolved
Not registered
Registered
Max. revenue
based on listing
sites, not actual
Current listing on AirBnB –
Not Registered with Town
Senate Bill 346: California ShortTerm Rental Facilitator Act Authorizes local governments to require platforms to
share host and property data to bolster enforcement
Not automatic - requires ordinance amendments
Sausalito example:
Adopted ordinance earlier this year
City bans short-term rentals
Requires remittance of TOT
Authorizes additional fines for non-compliance
Requires disclosure of addresses upon request
Fairfax could adopt similar ordinance
Next Steps
1. Initiate Collection Agreement with VRBO
(AirBnB agreement in place)
2. Initiate code enforcement actions for
unregistered units
3. Work with previously registered Hosts to re- register Questions
??