Vacation Rentals: Overview & Pompano Beach Research

Shane Laakso, AICP

KEITH

FAPA Conference

September 14, 2018

Destin, FL: “The more you can sleep, the more you can charge”

• After 2008 recession, many houses were bought by investors, converted to “mini-hotels”• Some small units advertised for 99 people (Occupancy issue)

• Example: 800 sft advertised for 99 people; Hotels sleep 25 or more• Short-term rental advisory taskforce

• Occupancy restrictions• Signs• Annual inspections• Prohibition on weddings

• City Ordinance• Vacation Rental definition: single-family dwelling units rented from 1 day to 6 months• Condos and apartments do not need to be registered• Registration Cost: $200• Registrations: 700 in May 2018; 1,600 in June 2018

www.nwfdailynews.com/news/20180613/occupancy-is-out-of-control-destin-targeting-short-term-rentals-issue

Broad Issues

• Disrespectful renters • Noisy/late nights• Parking• Trash• Traffic

• Increased cost of housingExample: https://www.citylab.com/equity/2017/08/where-airbnb-is-raising-rents/535674/

What is a Vacation Rental?

Transient Public Lodging is defined in State Statute and includes:

• Unit, group of units, dwelling, building, or group of buildings

• Rented more than 3 times per year • Less than 1 month or 30 days

• Vacation Rentals are subcategory of transient rentals (along with hotels, motels, transient apartments, non-transient apartments, Bed and Breakfast, and Timeshare

“Transient public lodging establishment” means

any unit, group of units, dwelling, building, or

group of buildings within a single complex of

buildings which is rented to guests more than

three times in a calendar year for periods of less

than 30 days or 1 calendar month, whichever is

less, or which is advertised or held out to the

public as a place regularly rented to guests.

Section 509.013(4)(b), Florida Statutes (F.S.)

State Licensing ProcessForm - DBPR HR 7028 For Vacation Rentals and Timeshares

• Address• Property Location• Signature

• Type of VR• Dwelling or Condo• Single, Group, or

Collective• Inspection?

• No initial inspection required

• When complaints occur

Vacation Rental Themes

Economic

Political

Social Themes are

connected…

Vacation Rental Themes: Economy

• Families renting homes out for extra income

• Companies renting properties as a business model

• Renters – more options cost (amenities, location)

Economic

Political

Social

Vacation Rental Themes: Social Component

Economic

Political

Social

• Tensions between:

• neighbors and renters

• neighbors and business

• Neighbors and local government

Vacation Rental Themes: Political Component

- Economic and Social forces drive political initiatives

- Local Governments want to legislate

Economic

Political

Social

Local Government Responses to Vacation Rentals

Existing regulations respond to local issues.

Local Government regulations are a mixed bag.

State Response?

Preemption on new regulations:

• Limits Local Governments to

regulations in place on June 1, 2011

• Preemption somewhat determines local

government approach and options

• Currently, new local governments

cannot:

1.prohibit vacation rentals, or

2.regulate the duration or frequency

*Section509.732(7)(b)

Pompano Beach

Short-term Rental Research &

Recommendations

History• 2017: Short-term rental ordinance (1-4 units)

• 2017: Moratorium on short-term rentals (5+ units)

• 2017 – 2018: Community residences

• 2017 – 2018: Short-term rentals (5+ units)

Purpose

• Understand whether problems exist

• Understand options

• Make recommendations

Methodology

• Mapping analysis• Compare Pompano with

other cities• Licenses• Units

• DBPR Data• Definitions

• State regulation review• Florida Building Code

review

Multi-unit public lodging establishments are concentrated in east.

State public lodging licenses and units are consistent between cities.

▪ Public lodging includes transient apartments, motels, hotels, and non-transient apartments

Transient apartment licenses are consistent between cities.

Transient Apartment> 25% of the units in the apartment building or complex are available for rent as transient occupancy

Transient apartment units are consistent between cities.

Recommendations: Transient Apartments

● Monitor transient apartment

licenses

● Categorize complaints○ City complaints are not associated

with properties

● Evaluate trends

• Certificate of Occupancy are tied to the FBC “use category”

• Change in use may lead to a change in category

FBC Section 310.3 Residential Group R-1

• Hotels (transient)

• Motels (transient)

• Boarding houses (transient) with more than 10 occupants

FBC Section 310.4 Residential Group R-2

• Apartment houses

• Vacation timeshare properties

Florida Building Code Use Categories

Changing uses from apartmentto short-term rental may require owners to update the Certificate of Occupancy designation.

Group Condo Vacation

RentalsPompano data diverges from other Cities

Pompano Beach has more CondoVacation Rental Group licenses and units than other similar cities.

Pompano Beach has more Condo Vacation Rental Group units than other cities.

Pompano Beach has a disproportionate number of group condo units

Large number of units for some licenses causes large number of overall group condo units.

Summary of

Recommendations

1. Monitor transient apartment licenses

and complaints associated with these

licenses

2. Monitor group vacation rental licenses

3. Monitor vacation rental bills in Florida

Legislature

4. Analyze how group vacation rentals

relate to any state preemption

Shane Laakso, AICP

KEITH

slaakso@keithteam.com