B&B ESTABLISHMENTS AND VACATION RENTALS - February 20, 2018 - Commission Work Session - Manatee County

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 not
  own any lodging establishments.
• According to 2017 Airbnb report, Bradenton attracted
  1,700 Airbnb guests during the Grapefruit League’s
  spring training schedule.

Background

Background
         Airbnb                     VRBO / HomeAway
• Website that brokers            • Online classifieds.
  transactions.                   • Hosts pay to advertise
• No fee for advertising; but       accommodations on site.
  Airbnb receives a percentage of   Guests pay a service fee when
  the services fees from hosts      they book a property.
  and guests.                     • Hosts may process payments
• Financial transactions are        on their own.
  processed through Airbnb.

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 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.

State Requirements
• Transient Occupancy defined by Section
  509.013(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.

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 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.

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 cooperative
or any individually or collectively owned single-family, two-
family, three-family, or four-family house or dwelling unit
that is also a transient public lodging establishment but that is
not 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 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.

State Preemption
• Section 509.032(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.

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 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.

Manatee County
        Land Development Code

X = not permitted
AP = Administrative Permit
SP = 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 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.

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 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

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.

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 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 owner-
  occupied.