February 20, 2018 - Work Session Agenda Item #2

Subject Short Term Rentals Briefings All Contact and/or Presenter Information

Presenters:

   Ken Burton, Jr., County Tax Collector

   Jeff Bowman, Code Enforcement Chief

   Kate Zamboni, Assistant County Attorney

Action Requested No action necessary; this is a work session. Enabling/Regulating Authority N/A Background Discussion

Commissioners requested this work session regarding short term rentals and tourism taxes related to this item.

● Ken Burton to discuss tourism tax. ● Staff to provide power point presentation on short term rentals and options related to such.

County Attorney Review Not Reviewed (No apparent legal issues) Explanation of Other Reviewing Attorney N/A Instructions to Board Records N/A

Manatee County Government Administrative CenterFourth Floor, Manatee Room

9:00 a.m. - February 20, 2018

Cost and Funds Source Account Number and Name N/A Amount and Frequency of Recurring Costs N/A Attachment:  Short Term Rentals Presentation.pdf

Manatee County Government Administrative CenterFourth Floor, Manatee Room

9:00 a.m. - February 20, 2018

Commission Work Session

B&B ESTABLISHMENTS

AND

VACATION RENTALS

February 20, 2018

PURPOSE OF WORK SESSION

• Provide background on vacation rental markets.

• Describe current State and County requirements.

• Describe how other communities are accommodating vacation rentals.

• Identify options for consideration.

Background

• Airbnb and VRBOs are part of a “home sharing”economy.

• Hosts advertise availability. Airbnb and VRBO do notown any lodging establishments.

• According to 2017 Airbnb report, Bradenton attracted1,700 Airbnb guests during the Grapefruit League’sspring training schedule.

Background

Background

Airbnb

• Website that brokers transactions.

• No fee for advertising; but Airbnb receives a percentage of the services fees from hosts and guests.

• Financial transactions are processed through Airbnb.

VRBO / HomeAway

• Online classifieds.

• Hosts pay to advertise accommodations on site. Guests pay a service fee when they book a property.

• Hosts may process payments on their own.

Background• Manatee County Tourist Development Tax (TDT) is

owed by every person who rents or leases “living quarters or accommodations” for a term of 6 months or less.

• Generally, hosts are responsible for collecting tax from guests and remitting the tax to the Manatee County Tax Collector.

State Requirements

• Transient Public Lodging Establishments defined by Section 509.013(4)(a), F.S.:

any unit, group of units, dwelling, building or group ofbuildings within a single complex of buildings which is rentedto guests more than three times in a calendar year forperiods of less than 30 days or 1 calendar month,whichever is less, or which is advertised or held out to thepublic as a place regularly rented to guests.

State Requirements

• Transient Occupancy defined by Section 509.013(12), F.S.:

occupancy when it is the intention of the parties that theoccupancy will be temporary. There is a rebuttablepresumption that, when the dwelling unit occupied is notthe sole residence of the guest, the occupancy is transient.

State Requirements• Bed & breakfast inn is a type of transient public lodging

establishment defined by Section 509.242(1)(f), F.S.:

a family home structure, with no more than 15 sleepingrooms, which has been modified to serve as a transient publiclodging establishment, which provides the accommodationand meal services generally offered by a bed and breakfast inn,and which is recognized as a bed and breakfast inn in thecommunity in which it is situated or by the hospitalityindustry.

State Requirements

• Vacation rentals are a type of transient public lodging establishment defined by Section 509.242(1)(c), F.S.:

any unit or group of units in a condominium or cooperativeor any individually or collectively owned single-family, two-family, three-family, or four-family house or dwelling unitthat is also a transient public lodging establishment but that isnot a timeshare project.

State Requirements• Role of the State of Florida Department of Business and

Professional Regulation (DBPR)– Section 509.032, F.S., authorizes the DBPR to regulate and inspect public

lodging establishments to safeguard the public health, safety, and welfare.– Duties include issuing a license to such establishments.– The regulation of public lodging establishments, including sanitation

standards, inspections, training and testing of personnel, is preempted bythe State.

– Local governments retain authority to inspect public lodgingestablishments for compliance with the Florida Building Code and theFlorida Fire Prevention Code.

State Preemption• Section 509.032(7)(b), F. S.:

A local law, ordinance, or regulation may not prohibitvacation rentals or regulate the duration orfrequency of rental of vacation rentals. Thisparagraph does not apply to any local law, ordinance, orregulation adopted on or before June 1, 2011.

State Preemption• Some cities and counties have grandfathered regulations, which has

created a patchwork of rules of regulations.

– Orange County

– City of Orlando

– City of Miami Beach

– City of St. Petersburg

– Sarasota County

• Most HOAs have standard covenants/restrictions that limit rental periods or frequency.

Manatee County

Land Development Code

• Definition of B&B:

any building of residential character or portion thereofwhich provides lodging with no more than eight (8)rental room units for transient occupancy on a daily orweekly basis, where food may be served family style andnot from a menu.

Manatee County

Land Development Code

X = not permittedAP = Administrative PermitSP = Special Permit

Manatee County

Land Development Code

Manatee County

Land Development Code

• Sanitation standards are preempted by Section 509.32(7), F.S.

• Authority for compliance with the Florida Fire Prevention Code lies with the local fire district.

Manatee County

Land Development Code

• There are no County-specific regulations that governshort-term rentals of an entire home or dwelling unit,aside from those that apply to hotels or motels.

• All vacation rentals, including B&Bs, within ManateeCounty, must have a license issued by the DBPR andare responsible for collecting and remitting the TDT.

County Code Enforcement

• Code enforcement is pro-active and re-active driven.

• Complaints

• Nature of complaints?

•Noise

•New “guests” daily/weekly

Examples from other Florida

Jurisdictions

Options for Consideration

• Maintain Status Quo.

• Establish a Registration Requirement.• Amendment to the County Code of Ordinances.

• Contract with a vendor (e.g., Vacant Property Registration).

• Additional staff needed for compliance.

• Registration fee.

Options for Consideration

• Create a new Accessory Use, e.g., Homestay

Accessory Use.• Amendment to Chapter 5 of the LDC (Land Development

Code)

• No permit requirement.

• Permitted in any dwelling unit, like other accessory uses such as home occupations.

• Subject to certain standards and limitations.

Options for ConsiderationAccessory Use, e.g., Homestay Accessory Use

Suggested Standards

• Primary use of full-time residence would have to be established.

• Maximum room rental of three rooms (four or more would require an AP or SP).

• Prohibit parking on road or right-of-way• Must obtain required applicable approvals from State.• XX

Options for Consideration• Revise Definitions

• B&B has ability for multiple tenants / lease agreements at a time.• Limit permit requirement for B&Bs with 4 to 8 rental rooms (first 3 will be

Homestay Accessory Use)

• Vacation Rental has ability for single tenant / lease agreement at a time.

• Residential Rental Property has single lease agreement for more than six months.

• Homestay is an accessory use established by full-time resident of the dwelling unit who rents such dwelling unit or up to three bedroomsbedrooms within the dwelling unit for transient occupancy.

Homestead Exemption

Implications

• Renting all or part of one’s homestead property for more than 30 days per year could jeopardize its exemption.

• There may be penalties with interest for any year the property was rented within the past 10 years.

2018 Legislation• SB 1400 would preempt all local government entirely in the

field of vacation rentals.

• HB 773 would prohibit local governments from establishingordinances specific to short term vacation rentals, but wouldallow grandfathered (pre-2011) ordinance to remain in place.

• SB 1640 would expand state oversight, but still allow localregulation over vacation rentals in SFH that are not owner-occupied.