B&B ESTABLISHMENTS AND VACATION RENTALS
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1 Commission Work Session B&B ESTABLISHMENTS AND VACATION RENTALS February 20, 2018
2 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.
3 Background Airbnb and VRBOs are part of a home sharing economy. Hosts advertise availability. Airbnb and VRBO do not own any lodging establishments. According to 2017 Airbnb report, Bradenton attracted 1,700 Airbnb guests during the Grapefruit League s spring training schedule.
4 Background
5 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.
6 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.
7 State Requirements Transient Public Lodging Establishments defined by Section (4)(a), F.S.: 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.
8 State Requirements Transient Occupancy defined by Section (12), F.S.: occupancy when it is the intention of the parties that the occupancy will be temporary. There is a rebuttable presumption that, when the dwelling unit occupied is not the sole residence of the guest, the occupancy is transient.
9 State Requirements Bed & breakfast inn is a type of transient public lodging establishment defined by Section (1)(f), F.S.: a family home structure, with no more than 15 sleeping rooms, which has been modified to serve as a transient public lodging establishment, which provides the accommodation and meal services generally offered by a bed and breakfast inn, and which is recognized as a bed and breakfast inn in the community in which it is situated or by the hospitality industry.
10 State Requirements Vacation rentals are a type of transient public lodging establishment defined by Section (1)(c), F.S.: any unit or group of units in a condominium or cooperative or any individually or collectively owned single-family, twofamily, three-family, or four-family house or dwelling unit that is also a transient public lodging establishment but that is not a timeshare project.
11 State Requirements Role of the State of Florida Department of Business and Professional Regulation (DBPR) Section , 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 by the State. Local governments retain authority to inspect public lodging establishments for compliance with the Florida Building Code and the Florida Fire Prevention Code.
12 State Preemption Section (7)(b), F. S.: A local law, ordinance, or regulation may not prohibit vacation rentals or regulate the duration or frequency of rental of vacation rentals. This paragraph does not apply to any local law, ordinance, or regulation adopted on or before June 1, 2011.
13 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.
14 Manatee County Land Development Code Definition of B&B: any building of residential character or portion thereof which provides lodging with no more than eight (8) rental room units for transient occupancy on a daily or weekly basis, where food may be served family style and not from a menu.
15 Manatee County Land Development Code X = not permitted AP = Administrative Permit SP = Special Permit
16 Manatee County Land Development Code
17 Manatee County Land Development Code Sanitation standards are preempted by Section (7), F.S. Authority for compliance with the Florida Fire Prevention Code lies with the local fire district.
18 Manatee County Land Development Code There are no County-specific regulations that govern short-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 Manatee County, must have a license issued by the DBPR and are responsible for collecting and remitting the TDT.
19 County Code Enforcement Code enforcement is pro-active and re-active driven. Complaints Nature of complaints? Noise New guests daily/weekly
20 Examples from other Florida Jurisdictions
21 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.
22 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.
23 Options for Consideration Accessory 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
24 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 bedrooms bedrooms within the dwelling unit for transient occupancy.
25 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.
26 2018 Legislation SB 1400 would preempt all local government entirely in the field of vacation rentals. HB 773 would prohibit local governments from establishing ordinances specific to short term vacation rentals, but would allow grandfathered (pre-2011) ordinance to remain in place. SB 1640 would expand state oversight, but still allow local regulation over vacation rentals in SFH that are not owneroccupied.
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