Short-term Transient Rentals A White Paper on Planning and Economic Considerations Prepared for the City of Ojai, California June 24, 2015
TABLE OF CONTENTS 1
Introduction ........................................................................................................................................ 3
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Background ......................................................................................................................................... 5 2.1 Sharing Economy ........................................................................................................................ 5 2.2 Defining Short-term Transient Rentals .................................................................................. 5
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Key Issues ............................................................................................................................................ 7 3.1 Zoning ........................................................................................................................................... 7 3.1.1 Intent of the Code .................................................................................................................. 8 3.1.2 Enforcement of the Code ...................................................................................................... 8 3.2 Property Rights ............................................................................................................................ 9 3.3 Safety ............................................................................................................................................. 9 3.4 Neighborhood character ............................................................................................................ 9 3.5 City Revenues and Economic Development........................................................................ 10 3.6 Housing Supply and Affordability ....................................................................................... 10 3.6.1 Impact on available supply of rental units ...................................................................... 11 3.6.2 impact on cost of housing................................................................................................... 12
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Further Study .................................................................................................................................... 14 4.1 Categorize Ojai Short-term Transient rentals ..................................................................... 14 4.2 Market Research on Ojai LoDging Alternatives................................................................. 14 4.3 Primary Research of Ojai Hosts of Short-term Transient Rentals................................... 14
Table 1-1 Summary of Key Issue Findings and Considerations Table 2-1 Comparative Summary of Regulated Uses Simalar to Short-term Transient Rentals Table 3-1 Airbnb Listings for Ojai, CA, July 3-5, 2015, and 2 Guests (as Posted June 19, 2015)
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1 INTRODUCTION Short-term transient rental online hosting services (e.g., Airbnb, VRBO, craigslist) enable users to rent out their home, or part of their home, as temporary lodging. These marketplaces are recognized as part of the sharing economy, which leverages internet applications to make peerto-peer exchange of goods and services possible. Like other components of the shared economy, short-term transient rentals are a recent development and have provoked local governments and community groups to consider the costs and benefits of such property use. Although quantitative data on this topic is relatively limited, local governments should explore this issue to determine an initial course that suits its public interest. This white paper is intended to serve as a primer for economic and planning considerations for the City of Ojai as it explores the benefits, costs, and potential actions regarding short-term transient rentals. Given time and budget constraints, the City did not request comprehensive Ojai-specific research on this topic at this time. Further, in deference to community and public process prescribed by the City, this white paper does not recommend an ultimate course for policymaking or regulation. This effort is intended to inform discourse on the subject. Section 2 provides background and context for the key issues by describing the sharing economy and uses similar to short-term transient rentals. As discussed, the novelty of the sharing economy is its ease of access and frequency of activity relative to the traditional economy. Further, short-term transient uses do share relative characteristics with other regulated uses. Section 3 outlines the key issues presented by short-term transient rentals. Table 1-1 below summarizes the findings and considerations for each issue.
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TABLE 1-1 SUMMARY OF KEY ISSUE FINDINGS AND CONSIDERATIONS Key Issue Zoning
Findings and Considerations1 Short-term transient rentals may subvert the intent and complicate enforcement of zoning codes. Regarding the code's intent, short-term transient rentals may not alter the physical character of the neighborhoods, but may present land use compatibility concerns given the use's income generation and relatively high occupancy turnover. Regarding the code's enforcement, the anonymous and temporary nature of short-term transient rentals may complicate enforcement of applicable regulations.
Property Rights
Although regulating short-term transient rentals may be considered by some to be an encroachment of a profitable use of property, California courts have the jurisdiction of municipalities to regulate this activity.
Safety
Short-term transient rentals present a number of neighborhood and personal safety issues. Like hotels, but unlike traditional rentals, short-term transient occupants do not undergo background screening.
Neighborhood Character
Potential impacts to neighborhood character from short-term transient rentals should be considered on a neighborhood-by-neighborhood basis (e.g., the impacts to rural areas versus village areas or the town center). Potential impacts to be considered include, but are not limited to, traffic and parking patterns, occupancy turnover, and the sustainability and compatibility of neighborhood uses with neighborhood form. Short-term transient rentals may affect both sides of the City’s ledger—causing not only a decrease in transient occupancy tax (TOT) from hotels, but also an increase sales tax from more tourists.
City Revenues and Economic Development Housing Supply and Affordability
Given limited data, the impact of short-term transient rentals on housing supply and affordability is unclear. However, initial research shown that hosted rentals (home sharing) may have less impact than un-hosted rentals. Regarding housing supply, the number of dwelling units removed from the long-term market for the short-term market seems at this point to be minimal, but regulation may be needed to curb future imbalances. Regarding housing affordability, the number of dwelling units on the short-term market that would constitute affordable housing on the long-term market may also be minimal. However, short-term transient rentals may be one way to supplement the income of homeowners and renters to improve existing affordability conditions.
As mentioned above in Section 1, the findings and considerations do not at this point reflect comprehensive Ojai-specific research.
1
Finally, Section 4 presents options for future study in which the community may define its own metrics for assessing the impact of short-term transient rentals. These options may point to the generation of more comprehensive Ojai-specific data to further localize the findings and considerations discussed in Section 3.
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2 BACKGROUND As background on the discussion of short-term transient rentals, Section 2 provides a brief discussion of the sharing economy and definition of short-term transient rentals relative to other similar uses.
2.1 SHARING ECONOMY The sharing economy is simultaneously a corporate and a grassroots phenomena. Internet startups and individual providers and customers are driving this $26 billion industry. 1 Renting out apartments, automobiles, or even power tools are not novel endeavors, but were difficult for individuals given limited information and high transaction costs. 2 Online platforms developed by Airbnb (for lodging), Task Rabbit (household errands and skilled tasks) as well as Uber (for ridesharing) eliminated many of these hurdles and empowered individuals to earn income and enabled those companies to generate profits. However, the access, ease, and frequency of activity in the sharing economy raised concerns and presented challenges among local governments, established industries, and neighborhood groups. To examine whether short-term transient rentals, as part of the sharing economy, are truly “disruptive” 3 to the traditional economy, the use should be considered in context relative to more conventional, less controversial uses.
2.2 DEFINING SHORT-TERM TRANSIENT RENTALS The definition of short-term transient rentals may seem self-explanatory and simply illustrated by an Airbnb listing. However, for purposes of furthering public discourse and city policymaking, short-term transient rentals should be defined relative to similar and regulated uses—conventional lease, sublease, vacation rental, hotel room, and home occupation. Although other jurisdictions have more rigidly delineated between hosted and un-hosted rentals, for the purposes of this white paper, short-term transient rentals include both hosted and un-hosted rentals and is distinguished from vacation rentals. Table 2-1 below presents a comparative summary of these uses.
1 “The Rise of the Sharing Economy,” The Economist, March 9, 2013, http://www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy 2
Ibid.
3
Susan McLean, “The Rise of the Sharing Economy,” Computers & Law Magazine of SCL 26, no. 1 (2015), 3.
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TABLE 2-1 COMPARATIVE SUMMARY OF REGULATED USES SIMALAR TO SHORT-TERM TRANSIENT RENTALS
Arrangement Conventional Lease Sublease Vacation Rental Hotel Room
General Land Use(s)1 Residential Residential Lodging Lodging
Period Term2 Years or Months Months Months Days
Host Status3 Hosted or Un-hosted Un-hosted Un-hosted Un-hosted
Occupant (By Degrees from Owner)4 1 2 1, 2, or 3 1
Level(s) of Regulation and Policymaking5 Federal, State, and Municipal State and Municipal State and Municipal Federal, State, and Municipal State and Municipal
Home Residential and Years or Hosted 0 Occupation Commercial Months Short-term Residential and Days Hosted or 1, 2, or 3 Municipal6 Transient Rental Lodging Un-hosted 1 General land uses listed correspond with those typically defined in zoning codes. 2 The period terms listed represent the likely most common for the arrangements. They do not represent any minimum or maximum of period for the respective arrangements. 3 Host status represents whether host (i.e., the owner or tenant who arranged for the occupant) is present during the tenant or guest’s occupancy. 4 Occupant defined by degrees of contractual relationship from property owner: 0 = Owner, no other contract; 1 = Tenant who contracts with owner; 2 = Subleasor/other occupant who contracts with tenant/agent who contracts with owner; 3 = Other occupant who contracts with subleasor/agent who contracts with tenant/agent who contracts with owner. 5 The jurisdictions (federal, state, and municipal) represent the bodies of law immediately relevant to current regulation and policymaking for the respective arrangement. These jurisdictions are not intended to convey exclusive control or enforcement of rules governing the respective arrangements. 6 Discussed in Section 3.1.2 of this white paper, short-term transient rentals may present issues concerning enforcement of applicable law.
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3 KEY ISSUES As the City of Ojai and its community contemplate policy in regards to short-term transient rentals, the following key issues may serve as planning and economic guideposts: • • • • • •
Zoning, Property rights, Safety, Neighborhood character, City revenues and economic development, and Housing supply and affordability.
As mentioned in Section 1, the discussion of key issues is not intended to offer conclusions or resolutions to debate. The intent of the discussion below is help the City facilitate a robust and comprehensive discussion of the key planning and economic issues for this matter in preparation for making informed decisions.
3.1 ZONING The City of Ojai’s parameters for land are set, in part, by the General Plan’s Land Use Element. 4 All City land use regulations, including the zoning code, must be consistent with the General Plan. 5 While the Land Use Element, and the other elements of the General Plan, “focus attention on issues of greatest community concern,” legislative instruments such as the zoning code provide greater specificity and procedures for implementation and enforcement of the General Plan’s goals, objectives, and programs. 6 Like in many other jurisdictions in California, Ojai’s zoning code does not directly address short-term transient rentals. As noted by the City Attorney’s office, the City, in one case, relied on its conditional use permit procedure’s standards for determination of similar use as a means to regulate short-term transient rentals. 7 The key issues here may be whether or not short-term transient rentals subvert the intent and complicate enforcement of the code.
4
City of Ojai, Ojai General Plan: Land Use Element, (Ojai, CA, May 13, 1997), 3.
5
Cal. Government Code, § 65860.
6
Land Use Element, 3.
7 City of Ojai, Office of the City Attorney, Overview of Transient Rental Regulations by Other Cities, by Matthew T. Summers and Megan Knize, 152565.1, (Ojai, CA, June 15, 2015), 1. The City’s standards for determination of similar use are codified in City of Ojai Municipal Code, § 10-2.303.
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3.1.1 INTENT OF THE CODE One stated purpose of the City of Ojai’s zoning code is to “[m]aintain a balanced distribution of land uses and provide for land use compatibility.” 8 Because short-term transient rentals are generally located in residential neighborhoods, one concern may be that such activity is not compatible with its location from a land use perspective. As discussed in Section 2.2 of this white paper, short-term transient rentals (hosted or un-hosted) share some characteristics with sublease arrangements as well as hotels. Sublease arrangements are generally considered compatible with most residential zones, but hotel uses in neighborhoods are more carefully scrutinized given hotels’ commercial nature, higher rates of tenant turnover, and imposition of physical structure. Like hotels, short-term-transient rentals generate income for the property owner or primary occupant and may increase neighborhood-wide tenant turnover. However, unlike hotels, shortterm transient rentals retain the neighborhood’s physical character (i.e., operating out of existing dwelling units) and are not necessarily as active as hotels in terms of frequency of guest turnover and presence of related amenities (e.g., restaurants, gift shops, etc.).
3.1.2 ENFORCEMENT OF THE CODE For many jurisdictions, enforcement of zoning codes can be a challenge of resources. Unlike other elements of the municipal code, zoning is generally not monitored by patrol. Zoning violations are typically made known by complaints from neighbors and handled by a zoning enforcement officer. Because of its relatively anonymous listings and temporary nature of use, short-term transient rentals may present complications in enforcement of the zoning. Given the relative anonymity of Airbnb listings, enforcement of ordinances pertaining to shortterm transient rentals may be exceedingly difficult. Sites like Airbnb keep listing addresses private until an arrangement is finalized between a provider and a tenant. Further, unlike Uber, which requires its drivers to place the Uber logo visible the car, those listing rentals on Airbnb do not outwardly mark their homes to signify their participation in the marketplace. Although short-term transient rentals must still comply with building, health, and safety codes and other codes governing dwelling units, the use’s temporary nature makes applicability of the law less clear. For example, California law mandates that dwelling units must include at least one room of at least 120 square feet, that other rooms used for living must be at least 70 square feet, and any room used for sleeping must increase the minimum floor area by 50 square feet for each occupant in excess of two. 9 However, with infrequent guests for a hosted or un-hosted short-term transient rental, the opportunity for neighbors to report possible violations may be
8
City of Ojai Municipal Code, § 10-2.102(c).
9
Cal. Health & Safety Code, § 17922.
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fleeting. Other municipal code standards, such as tax and business license requirements, may also govern short-term transient rentals.
3.2 PROPERTY RIGHTS The United States Supreme Court has held that local authority to regulate land use is derived from the police powers—capacity to regulate for health, safety, and welfare. 10 The government’s land use regulation potentially collides with the individual’s property rights. Jurisdictions that pass laws that restrict or prohibit short-term transient rentals encroach, justifiably or not, on the use of one’s property. California courts have upheld zoning ordinances that prohibit short-term transient use of residential property, in part on grounds that such regulation does not violate the Fifth Amendment Takings Clause. 11
3.3 SAFETY Short-term transient rentals may present a number of neighborhood and personal safety concerns to be properly addressed by local regulation. Similar to hotels and other lodging uses, occupants of short-term rentals do not undergo background and financial screening which is common, and often mandatory, under normal rental terms. Especially in un-hosted short-term transient rentals where the owner is not present to monitor activity, there is concern over neighborhood safety.
3.4 NEIGHBORHOOD CHARACTER One objective of the General Plan’s Land Use Element is to “preserve Ojai’s small town character and maintain a built environment that does not detract from Ojai's natural environment.” 12 As discussed in Section 3.1, any regulation, zoning or otherwise, of short-term transient rentals must be consistent with the General Plan. Accordingly, the Ojai should consider how short-term transient rentals affect existing neighborhoods and conform to the desired community attributes and structure, defined by the Land Use Element as “a place for people and families to live quality lives…that successfully blends…small town lifestyle and a tourist economy.” 13 The impact of short-term transient rentals may vary across communities, and between neighborhoods within each community. The impacts, if any, to the City of Ojai should be considered within the context of the neighborhood in question (e.g., the impacts to rural areas versus village areas or the town center). Potential impacts to be considered include, but are not limited to: 10
Village of Euclid v. Ambler Realty Co., 272 U.S. 365, 388 (1926); See also California Constitution, Art. 11 § 7.
11
Ewing v. City of Carmel-By-The-Sea, 234 Cal.App.3d 1579, 1592 (1991).
12
Land Use Element, 2.
13
Ibid., 6.
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• • •
Traffic and parking patterns, Occupancy turnover, and Sustainability and compatibility of neighborhood uses with neighborhood form.
Concerned with potential alterations to neighborhood character, homeowner associations (HOAs) have, in the past, acted restrict the ability of a homeowner to rent or lease the property as short-term rental. However, California’ Davis-Sterling Act limits the ability of HOA’s to impose such restrictions upon members. 14
3.5 CITY REVENUES AND ECONOMIC DEVELOPMENT Short-term transient rentals may affect both sides of the City’s ledger—causing not only a decrease in transient occupancy tax (TOT) from hotels, but also an increase sales tax from more tourists. Ongoing study by Boston University researchers found that Airbnb’s impact to hotel revenue might be approximately eight to ten percent in cities where the service is most popular, thus decreasing the revenue generated from TOT. 15 In response, some jurisdictions have passed ordinances requiring hosts of short-term transient rentals to pay TOT and other local business fees. 16 However, services like Airbnb may also attract more visitors and tourists who may spend money at shops, restaurants, and local events, thus generating new sales tax revenue. 17 For example, a report produced by Airbnb for the City of Los Angeles estimated “more than $200 million in spending by guests, supporting an estimated 2,600 jobs.” 18 In all, the data on shortterm transient rentals is relatively scant, so it remains unclear how these impacts to city revenue will balance out.
3.6 HOUSING SUPPLY AND AFFORDABILITY In some communities, concerns have been raised that short-term transient rentals may negatively impact housing supply and affordability. Per the discussion in this section, there are many factors to consider when examining the short-term transient rental market’s effect in this realm.
14
Cal. Civil Code, § 4740.
Georgios Zervas and David Prosperio, “The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry,” Boston University School of Management Research Paper No. 2013-16, May 7, 2015, 3. 15
16 City of Santa Monica, Vacation Rentals and Home-Sharing (City Council Report), by David Martin, (Santa Monica, CA, April 28, 2015), 6-7. 17
“Estimating the Impact of Airbnb,” 27.
18 Tim Longa, Emily Alpert Reyes, and Ben Poston, “Airbnb and Other Short-term Rentals Worsen Housing Shortage, Critics say,” Los Angeles Times, March 11, 2015, retrieved from http://www.latimes.com/business/realestate/la-fiairbnb-housing-market-20150311-story.html#page=1.
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3.6.1 IMPACT ON AVAILABLE SUPPLY OF RENTAL UNITS Shown in Section 2.1, short-term transient rentals included hosted and un-hosted rentals. Dwelling units listed as un-hosted rentals, where the whole unit is available for rent, might, in some cases, be otherwise available for full-time rental. This would occur if higher per-night rent, compared to pro-rated per-night rent of a monthly rental, caused property owners to exit the long-term rental market entirely, thus decreasing the number of dwelling units available from the housing stock. For example, “Los Angeles Alliance for a New Economy, a laborbacked advocacy group, estimates that more than 7,000 houses and apartments have been taken off the rental market in metro Los Angeles for use as short-term rentals” 19 and in San Francisco, where 5,000 units were listed, “the number of Airbnb homes that appear to not be available on the rental market is significant.” 20 There are two possible qualifications to the above figures, which may suggest the figures are inflated. The first qualification may be that a number of available short-term transient rentals were not part of available housing stock to begin with, like second properties or vacation homes. The second qualification may be that a significant number of available short-term transient rentals would demand greater-than-affordable rents even in the long-term rental market. For example, consider a recent search on Airbnb with the following parameters: Location: Ojai, California, Dates: Friday, July 3 to Sunday, July 5, 2015, and Number of Guests: 2. 21
• • •
Table 3-1 shows the results for the above search. TABLE 3-1 AIRBNB LISTINGS FOR OJAI, CA, JULY 3-5, 2015, AND 2 GUESTS (AS POSTED JUNE 19, 2015) Type of Rental Entire Place Private Room Shared Room
No. of Listings1 44 44 11
Average Per-Night Rate $417 $110 $90
Total 892 $246 Some listings may be near, but not in Ojai’s city limits. 2 Overlap among rental types may account for inconsistency in the total number of listings. Source: “Ojai, CA, United States,” Airbnb, accessed June 19, 2015, retrieved from https://www.airbnb.com/s/Ojai--CA--UnitedStates?checkin=07%2F03%2F2015&checkout=07%2F05%2F2015&guests=2&source=bb&ss_id=bcssnaol 1
19
Ibid.
20 Carolyn Said, “Window into Airbnb’s Hidden Impact on S.F.: How Some 5,000 Impromptu Listings Skirt the Law, Affect Housing Supply — Yet Find Favor with Travelers, Hosts,” San Francisco Chronicle, June 2014, retrieved from http://www.sfchronicle.com/business/item/Window-into-Airbnb-s-hidden-impact-on-S-F-30110.php
“Ojai, CA, United States,” Airbnb, accessed June 19, 2015, retrieved from https://www.airbnb.com/s/Ojai--CA-United-States?checkin=07%2F03%2F2015&checkout=07%2F05%2F2015&guests=2&source=bb&ss_id=bcssnaol 21
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It is likely, the case that not all of the 89 listings are posted on Airbnb at the expense of the Ojai’s housing stock. Some of these units may be in both the short-term and long-term rental markets. Further, absent further study, it is unclear whether the long-term rental rates of these dwelling units would constitute affordable housing if on the long-term market. Gabriel Metcalf, President and CEO of SPUR, a non-profit urban planning research institute, explains that, “’from a policy perspective, the real issue is whether there are a lot of units that have been removed from the housing market because of short-term rentals… It looks like that’s not a big number yet, but that’s what we need regulation to control so it doesn’t become big.’” 22 Research by Tom Davidoff of the University of British Columbia, hired by Airbnb, supports this Metcalf’s argument, stating “the effect on the broader housing market is so small that it's all but irrelevant.” 23 Although Airbnb claims the majority of listings are hosted, and thus not part of the long-term rental market, the research is less conclusive. In Southern California, 35 percent of Airbnb revenue comes from users who rent more than one unit 24 and approximately 67 percent of units listed in San Francisco were for the entire unit. These figures may indicate such units are not primary residences. However, 86.4 percent of listings in San Francisco were for a single listing, 25 perhaps evidencing that residents rent out their own home. From initial research, it is unclear what portion of listings for an entire home are all unoccupied, if the primary resident is on vacation, or if hosts listing a single unit are indeed primary residents.
3.6.2 IMPACT ON COST OF HOUSING Under basic economic principles, scarcity increases the price of a commodity with a fixed (or not easily increased) supply. When the rental housing stock supply decreases, the perceived scarcity of supply encourages landlords to increase rents without fear of reduced demand. Increasing housing costs beyond household affordability leads to economic stress and overcrowding—when families are unable to afford appropriately-sized homes or must move-in with family or friends to reduce housing costs. Additionally, renters must compete with visitors willing to pay higher premiums for short trips, rates in excess of what a monthly renter could afford. For example, as shown in Table 3-1, Airbnb rates in for a private room Ojai average $110 per night (totaling $3,300 per month), 26 whereas the maximum affordable monthly rental price for a moderate-income family of four in Ventura County is $2,679. 27
22
“Window into Airbnb’s Hidden Impact on S.F.”
23
“Airbnb and Other Short-term Rentals Worsen Housing Shortage.”
24
Ibid.
25
“Window into Airbnb’s Hidden Impact on S.F.”
26
“Ojai, CA, United States.”
27
City of Ojai, 2014-2021 Housing Element, (Ojai, CA, December 10, 2013), 24-25.
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Conversely, evidence suggests short-term rentals have an economic benefit to the host and the community. From 2000 to 2012, median gross rent in the City of Ojai in the western United States increased over 65 percent (from $814 to $1,261). 28 Additional income from short-term transient rental listings may increase affordability for some tenants. San Francisco resident Kepa Askenasy, for example, says short-term rental income “’has allowed me to pay down my medical bills, pay my mortgage, cover the costs of not being able to work full time.’” 29 Since the financial crisis of 2008, eight percent of Ojai residents are unemployed, 30 37 percent of homeowners and 55 percent of renters are overpaying for housing, 31 and 46 percent of households are of low or very-low income. 32 For these individuals and families, renting their home or rooms in their home may be a valuable income stream. In turn, supplemental income from short-term rentals could make home ownership feasible for some income groups. Home ownership is widely associated with benefits counter to arguments that rentals (long term or other) pose safety and maintenance concerns in certain neighborhoods.
U.S. Census Bureau, “Median Gross Rent,” City of Ojai, California (Universe: Specified Renter-occupied Housing Units Paying Cash Rent),” Census 2000 Summary File 3 (SF 3) - Sample Data; U.S. Census Bureau, “Median Gross Rent,” City of Ojai, California (Universe: Renter-occupied Housing Units Paying Cash Rent), 2009-2013 American Community Survey 5-Year Estimates. 28
29
“Window into Airbnb’s Hidden Impact on S.F.”
30
2014-2021 Housing Element, 19.
31
Ibid., 17.
32
Ibid.
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4 FURTHER STUDY Further study may be necessary for Ojai to develop community-specific metrics to informing policymaking regarding short-term transient rentals. Options for further study include: • • •
Categorization Ojai short-term transient rentals by location, type, and cost; Market research on Ojai lodging alternatives, such as hotels, motels, and bed and breakfasts; and Primary research Ojai hosts of short-term transient rentals byway of interviews and surveys.
These options for further study presented below should be aligned with community priorities and target the impacts most relevant the Ojai’s residents and stakeholders.
4.1 CATEGORIZE OJAI SHORT-TERM TRANSIENT RENTALS To further assess the impacts of short-term transient rentals on Ojai’s housing supply and affordability, the City could research the location, type, and cost of listed rentals in its jurisdiction or sphere of influence. This effort may yield data that helps answer the following questions: • • • •
What are the types of rentals available in the City, and are these rentals taking long-term rentals off the market? How much are these rentals in comparison to hotels, motels, and bed and breakfasts? Where are these rentals in comparison to hotels, neighborhoods, and commercial areas? How often are these short-term rentals occupied?
4.2 MARKET RESEARCH ON OJAI LODGING ALTERNATIVES The City could research the daily rental rates and vacancy rates of hotels, motels, and bed and breakfasts in Ojai over a set interval of time. This data may help the City understand how the increase in short-term rentals has impacted hotel patronage in Ojai. The results may show a net increase in tourism or may reveal a shift in occupancy of hotels to short-term rentals. This analysis could also provide the basis of overall fiscal and economic impacts to the city.
4.3 PRIMARY RESEARCH OF OJAI HOSTS OF SHORT-TERM TRANSIENT RENTALS While secondary research and examples from other jurisdictions throughout California may reveal trends, insights, and quantified data on short-term transient rentals, primary research is an irreplaceable source of information specific to Ojai. The City could identify and contact hosts
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of short-term transient rentals to arrange a one-on-one or group interviews. Questions could include the following: • • • • •
Are you present during the rental of your property? Are you the owner of the property you list on hosting sites? How often do you rent your property for short-term occupancy? What motivated you to list your property for short-term rental? Are you familiar with laws, regulations, taxes, licenses, etc. necessary to operate your short-term rental?
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