Land Use, Sustainability and Resilience Committee
TO: LAND USE, SUSTAINABILITY, AND DATE: DECEMBER 11, 2023 RESILIENCE COMMITTEE MEMBERS FROM: COMMUNITY & ECONOMIC DEVELOPMENT WARDS: ALL DEPARTMENT SUBJECT: REGULATION OF SHORT-TERM RENTAL HOMES
ISSUE:
Receive a report on the current regulations regarding short term rentals and potential strategies to enhance enforcement strategies moving forward.
RECOMMENDATIONS:
That the Land Use, Sustainability, and Resilience Committee:
Receive and file a report on current enforcement efforts related to short term rentals and potential regulations moving forward; and Provide staff direction on possible code amendments regarding short-term rental properties in the City of Riverside.
BACKGROUND:
On August 14, 2023, the Business Tax Division of the City’s Finance Department presented an update on the status of short-term rental business tax certificates and transient occupancy taxes (attachment 3.) During this meeting, the Committee had numerous questions regarding enforcement of short-term rental regulations and requested a report on current enforcement and possible options to enhance regulations moving forward. The Committee expressed concern with certain short-term rentals having negative impacts on residential neighborhoods including noise, parking, trash, parties, and other associated nuisances. The City of Riverside does not currently have an ordinance directly related to operational standards specifically for short-term rental properties in the City but does have other mechanisms aimed at mitigating the negative secondary affects these properties may create.
DISCUSSION:
Short-term rentals (a.k.a. STR’s) are defined as: “The rental of a dwelling, or a portion thereof, by the owner to another person or group of persons for occupancy, dwelling, lodging, or sleeping purposes for a period of less than 30 consecutive calendar days. The rental of units within city-approved hotels, motels, and bed-and-breakfast inns shall not be considered to be a short-term rental.” These units are frequently used for vacation or business travel, are fully furnished, stocked with basic supplies, and are advertised on various host sites such as Airbnb, Homeaway and VRBO.
Statistics
There are currently approximately four hundred fifty-four (454) short-term rental properties registered and publicly advertised as available in the City of Riverside. Three hundred (300) of those are the entire home while the remainder are single rooms within a home. The City of Riverside Code Enforcement Division does not currently track the number of complaints associated specifically with STR’s since they are currently permitted in the city with a City Business Tax Certificate. The Riverside Police Department also does not currently keep data on STR’s specifically but reported that in a one-year period (10/01/2022-10/01/2023,) there were a total of 3951 calls for service in the City for “Party” or “music” related complaints. This is in no way indicative that these incidents were taking place at STR’s. Those calls were service were also queried for any reference to “Airbnb,” “VRBO” or “Short Term Rental” in the responding Officer’s comments which identified seven (7) such locations in the same one-year period.
Common complaints have primarily been related to noisy parties/events taking place, different people coming and going from a property, trash/debris left behind and street parking being impacted by numerous guests.
Current Regulation
The City of Riverside does not have a short-term rental ordinance. The City Council did recognize the need to put controls in place in response to concerns about short-term rental homes being used frequently to host large scale events and parties in single family residential neighborhoods. As previously stated, the most common complaint regarding these homes has been the noise disturbances generated by the guests, usually from parties, and the impact these events have on the surrounding neighborhood. To this end, Riverside Municipal Code 9.04.710-780 was adopted in 2019. (attachment 1) Among other things, this law defines a loud and unruly gathering as:
“a gathering of persons on any property whether residential, commercial or industrial or any public right-of-way for a social occasion or other activity upon which loud or unruly conduct occurs and results in a public nuisance or a threat to the public health, safety, welfare, or the comfortable enjoyment of life and property.” Loud or unruly conduct is further defined as:
Excessive or loud noise;
Excessive traffic;
Obstruction of a public street or public right-of-way, including a sidewalk; Public intoxication or drinking in public;
The service of alcoholic beverages to minors;
Possession and/or consumption of alcohol by minors;
Assault, battery, fights, domestic violence or other disturbances of the peace; The sale or service of alcoholic beverages without a required State license; Vandalism or destruction of property;
Litter;
Urinating or defecating in public;
Trespassing.
In terms of addressing other negative secondary effects short-term rental homes may have on the community, Riverside Municipal Code 6.15 – Public Nuisances (Attachment 2) prohibits trash/debris, outdoor storage, parking vehicles on unpaved yard areas, and numerous other nuisance activity and/or conditions.
Other Jurisdictions
To gain an understanding of how other local jurisdictions have responded to STR’s in their communities, staff explored regulations from the County of Riverside (attachment 4,) City of Corona (attachment 5) and City of Palm Springs (attachment 6). The County of Riverside does have certain “destination” or “resort” areas such as the Temecula Wine Country, parts of the desert area in the Coachella Valley and mountain communities near Idyllwild that may draw a higher number of travelers. The City of Corona is not traditionally considered a vacation destination in and of itself but is in close proximity to local attractions. Finally, the City of Palm Springs can certainly be considered a resort community which also has a significant number of full-time residents living alongside the STR’s in the residential areas.
A common theme that all three surveyed agencies share is that they all:
Require a certificate or permit to operate an STR and charge a fee for that permit, Require a local 24-hour contact person for problems at the STR, Require that all trash/debris be stored out of public view until trash pick-up day, Prohibit any loud, disruptive activity,
Require a guest’s signature agreeing to all rules and receipt of “good neighbor” policy, Allow for criminal and administrative enforcement and revocation of permit for repeated violations, and
Require that property is otherwise in compliance with all other codes and regulations.
The following graph is a comparison of the three surveyed agencies to the City of Riverside.
County of Riverside
City of Corona
City of Palm Springs
City of Riverside
Short term rental permit or certificate required
X
X
X
Limits number of permits issued
X
Requires local 24-hour 7 day/week contact
X
X
X
Limits number of yearly rental contracts permitted
X
Requires trash and debris be stored out of view until pick-up X
X
X
X
Prohibits loud disruptive behavior/activity
X
X
X
X
Authorizes criminal enforcement
X
X
X
X
Authorizes administrative enforcement
X
X
X
X
Allows permit revocation for repeated violations
X
X
X
Requires annual Building and Fire inspection
X
Establishes a 24-hour HOTLINE for complaints
X
Allows onsite parking only for guests
X
X
X
Limits occupancy to 2 people per bedroom
X
X
Requires minimum stay of 2 days/1 night
X
X
Requires guest to sign for good neighbor brochure
X
X
X
STRATEGIC PLAN ALIGNMENT:
This item aligns with Strategic Priority 5 – High Performing Government and Goal 5.2 – Utilize technology, data, and process improvement strategies to increase efficiencies, guide decision making, and ensure services are accessible and distributed equitably throughout all geographic areas of the city.
This item also aligns with each of the Cross-Cutting Threads as follows:
Community Trust – Create a level of confidence that the City of Riverside is effectively governing short-term rentals through regulations and policies that ensure the safety, security, and well-being of both the renters and community.
Equity – The City’s short-term rental policies hope to provide an opportunity to enjoy a peaceful and safe living environment for all while also considering economic opportunities for property owners.
Fiscal Responsibility – The Riverside Municipal Code provides governance and accountability for all business-related activities within the City and fair and equal application of the code. Revenue generated is directly integrated into the general fund and used for Citywide services.
Innovation – The City strives to be creative and innovative in its approach to emerging issues such as short-term rentals and develop policy specific to Riverside that meets the needs of all stakeholders.
Sustainability & Resiliency – Through proper management of short-term rentals, the City of Riverside can create a more livable and resilient community for its residents by promoting long-term environmental and economic stability.
FISCAL IMPACT:
There is no fiscal impact associated with this report.
Prepared by: Gary T. Merk, Code Enforcement Manager
Approved by: Jennifer A. Lilley, Community & Economic Development Director Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachments:
RMC (Loud unruly party/gathering)
RMC 6.15 (public nuisances)
Finance Dept staff report 8/14/23.
County of Riverside Ordinance
City of Corona Ordinance
City of Palm Springs Ordinance
Presentation
Short Term Rentals ● Page 2