Housing Trends and Best Practices in Short-term Vacation Rentals 1 - - PowerPoint PPT Presentation

New York State City/County Managers Association

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Housing Trends and Best Practices in Short-term Vacation Rentals

Ag Agenda

• Introductions
• Understanding the Challenge
• Best Practices for Enforcing STR Regulations
• Available Solutions to Help
• Questions

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Introdu

• duct

ction:

• n:
• Providing technology solutions

to Local Government for over 20 years

• Launched Host Compliance

when asked by local town council to study possible ways to address its short-term rental compliance issues

• Met with over 400 cities and

counties on the topic of Short- term Vacation Rentals.

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• Over 120 City and County

customers coast to coast

• First provider of efficient

short-term rental permitting, compliance monitoring and enforcement solutions for local governments

• Team of seasoned local

government technology executives and data-scientists Paul Hetherington Co-Founder & CCO

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More than n 120 120 leadi ding ng citi ties es and count nties es are looking ing to Host t Compli lianc ance e for guidan dance ce, , data and solu lutio tions ns to their ir short-ter term rental al challe llenge nges

Select Metropolitan City Clients Select Southern CA Clients

Ag Agenda

• Introductions
• Understanding the Challenge
• Best Practices for Enforcing STR Regulations
• Available Solutions to Help
• Questions

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Th The Challe leng nge: e: Ad Address ss and Contac act info

• is

Hidden en on Host t Pl Platfor form Listin tings gs

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Th The Va Vacatio tion n Renta tal l Pl Platfor forms s Refuse se To To Ex Exchan ange e Detaile iled d User Data With h Local al Gover ernme ments nts

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Ke Keeping ng Tr Track ck Of 100s Or 1,000 00s s Of St Str List stin ings gs Is A A Sp Spreads dshe heet et Nightm tmar are

IT JUST DOESN’T WORK

Listin tings gs (And Duplic icates ates) ) Change, e, Come And Go Al All The Time

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HomeAway Listing FlipKey Listing

Market ket Context: ext: AirBnb nb, VRBO and 100’s of other vacation renta tal website tes s have turned ned vacat ation n renta tals s into a booming g (underground) economy…

Sources: AirBnB, Expedia, TripAdvisor and Booking.com

100+ other web platforms

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The short-term rental market has grown 800% since 2011 Market is fragmenting

Millions of STR listings

Sh Short-ter term Re Rental al By By Jurisd isdictio iction n (To Top 10)

To Tompkin ins s County ty Da Data Br Breakd kdown wn

Ag Agenda

• Introductions
• Understanding the Challenge
• Best Practices for Enforcing STR Regulations
• Available Solutions to Help
• Questions

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Best t Practi ctice ce # 1: 1: Re Require e hosts, ts, property erty managers ers (and pla latf tforms)

• rms) to register

ister and provide ide detail ailed ed record

• rds

s of their ir rental tals, s, renta tal acti tivity vity and TOT T remitt ittance nces s by renta tal l unit

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Allowing permit holders to register multiple units under one permit number or remitting TOT for multiple properties in one payment makes it impossible to verify compliance Property #1 Property #2 Property # 3 Propterty # 4

Best t Practi ctice ce # 2: 2: Make e sure e the ordinan ance ce is enforce

• rceab

able e by specifying ifying that at advertisem rtisement nt of unpermitted mitted STRs Rs wi will be considere idered d prim ima facie cie evid idence ce of il ille legal l activi ivity ty

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Best practice ordinance language example 1: "An advertisement promoting the availability of short term rental property in violation of City code is prima facie evidence of a violation and may be grounds for denial, suspension, or revocation of a license" Best practice ordinance language example 2: "Advertising that offers a property as a Residential short-term rental shall constitute prima facie evidence of the operation of a Residential short-term rental and the burden of proof shall be on the owner,

• perator, or lessee of record to establish that the subject property is

being used as a legal Residential short-term rental or is not in operation."

IN IN GE GENERAL LE LESS THAN 10 10% OF F STR OWNERS VOLUNTARILY GE GET A PERMIT AND PAY ALL OF F THEIR HOTEL TAXES Best t Practi ctice ce # 3: 3: Plan for r the reality ity that at wi without ut system stemati atic c and proact ctive ve enforcem rcement, ent, only a f fract action n of short rt-te term rm rentals tals wi will ll get permits mits and pay their ir fair ir share e of taxes Large potential for increasing permit fee and tax collection

Best st Practice actice # 4: Understa nderstand d that hat the he STR market arket is in constant

• nstant flux

ux so the e City ty will ll need eed to consta

• nstantl

ntly y moni

• nito

tor r 50+ + website ebsites s fo for r new ew non

• n-com

compli liant t opera perato tors rs

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Active STR listings as of 10/13/16 3,014 New STR listings between 10/13/16 and 9/16/17 +1,832 4,846

• 1,488

Total # of Listings active between 10/13/16 and 9/16/17 Listings deactivated between 10/13/16 and 9/16/17 Active STR listings as of 9/16/17 3,358

54%

• f the

currently active listing were created in the last 11 months

South Lake Tahoe example:

Best Practice # 5: Don’t expect that traditional code- enforceme

• rcement

nt tech chniq niques ues and processe esses s can ensure re complia liance nce

Rental property listings are spread across 100s of different websites Address data is hidden from listings making it time-consuming or impossible to locate the exact properties and identify owners There is no easy way to manually find out how often each property is rented and for how much The vacation rental platforms refuse to provide the detailed data necessary for enforcing local ordinances Manual compliance monitoring and complaint-based enforcement often leads to claims of selective enforcement

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Best t Practi ctice ce # 6: 6: Make e it easy for r STR R operat ators rs to register ster and pay their ir taxes

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Make it simple, stupid!

Best t Practi ctice ce # 7: 7: Allow w STR R operators ators to get permits mits and pay their r taxes es online (and make the online form rms s mobile frien iendly!) dly!)

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Best t Practi ctice ce # 8: 8: Syste stematical matically y captu ture re evidence ce of advertiseme rtisement nt and rental tal activity ivity and take ke we weekly ly scre reenshots enshots to prove ve it

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Best Practice # 9: To eliminate “gaming”, quickly mail notifi ificatio cations ns to own wners s of illegal rental tal units s and include e evid idence ce to maxim imize ize response

• nse

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Best t Practi ctice ce # 10 10: Make it easy for neighbors

• rs to report,

rt, prove e and resolve

• lve non-emer

emergen ency cy STR related ted problems ems in re real-tim ime e

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Step 1 Concerned neighbor calls 24/7 short-term rental hotline Step 2 Complainant provides info on alleged violation and is asked to provide photo, video

• r other proof of the alleged violation

Step 3 If property is registered, Host Compliance immediately calls host to seek resolution Step 4 Problem solved or escalated – Complaints saved in database so serial offenders be held accountable

We have received a compliant!

Ag Agenda

• Introductions
• Understanding the Challenge
• Best Practices for Enforcing STR Regulations
• Available Solutions to Help
• Questions

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• Address Identification: Online dashboard with complete address

information and screenshots of all identifiable STRs in Los Angeles’ jurisdiction

• Compliance Monitoring: Ongoing monitoring of STRs for zoning and

permit compliance coupled with systematic outreach to illegal short-term rental operators (using Los Angeles’ form letters)

• Rental Activity Monitoring and Tax Collection Support: Ongoing monitoring
• f Los Angeles’s STR listings for signs of rental activity. Enables data-

informed tax compliance monitoring and other enforcement practices that require knowledge of STR activity level

• Dedicated Hotline: 24/7 staffed telephone hotline for neighbors to report

non-emergency STR problems

• Mobile Enabled Permitting and Registration: Mobile/web forms and

back-end systems for streamlining Los Angeles’ permitting and registration processes and capturing payments, signatures and required documents

Avail ilable ble Services vices To Help lp

Address ss Identifica tificati tion: : Access ss your r jurisd sdict ctions s short rt-term term renta tal l activi ivity ty incl. l. comple lete te address ess informatio rmation and screensh eenshots

• ts of all identifi

tifiab able e STRs

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TOT Collection: Host Compliance’s online tax collection tools makes s it easy y for host sts s to report rt, , calc lculate ulate and pay their ir taxes es

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Enforc

• rcem

emen ent: t: Host t Compli lianc ance e adva vanced nced call ll cente nter r and web reporting rting solu luti tion

• n ma

makes s it easy sy for conce ncerned rned neighbo ghbors s to anony nymous

• usly

ly report rt inci ciden dents ts and keep p hosts ts accoun

• untab

table le

Step 1 - Concerned neighbor calls 24/7 short-term rental hotline Step 2 – Complainant provides info on alleged violation and is asked to provide photo, video or other proof Step 3 – Host compliance immediately calls host to seek resolution Step 4 – Problem solved or escalated to code-enforcement – violation saved in database and serial offenders can have permits revoked

We have received a compliant!

Benefits fits to using this approach ach

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Ensures fair, continuous and consistent compliance monitoring and enforcement across all platforms Provides the most citizen and staff friendly user-experience possible Frees up valuable IT, code-enforcement, tax collection staff time that can be focused on higher-value added activities Minimizes noise, parking and trash violations Minimizes the impact on law and code enforcement agencies as complaints are first handled by our 24/7 hotline and routed to the appropriate property owner before further enforcement actions are triggered Maximizes tax and permit fee collections REVENUE POSITIVE – the additional permitting fees alone will pay for Host Compliance’s services. The incremental TOT revenue makes ROI very compelling!!! Requires NO up-front investment or complicated IT integration

• > we can be up and running before the new ordinance goes into effect!

Ag Agenda

• Introductions
• Understanding the Challenge
• Best Practices for Enforcing STR Regulations
• Available Solutions to Help
• Questions

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Quest stio ions ns

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Conta tact ct info fo

Please feel free to contact us anytime if you have any questions about home-sharing regulation and how to best address the associated permitting, monitoring and enforcement challenges.

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Paul Hetherington paulh@hostcompliance.com 604.763.7285 www.hostcompliance.com