California Cities Regulate Short-Term Rental Industry
The City of Sacramento has recently approved two ordinances requiring operators
of short-term rentals to obtain a permit and pay taxes and fees associated
with renting their properties. The ordinances come in response to the
growth of the industry within the city and around the country. The Sacramento
City Council hopes to facilitate an atmosphere in which “homeowners
can share their homes and make some extra money without causing problems
for their neighbors.” Some residents, however, raise concerns over
noise levels and the compiling of trash in residential communities which,
they claim, is associated with short-term renters.
Sacramento is one of multiple cities in California which have begun regulating
the short-term rental industry. While Sacramento’s regulations are
comparatively lax on rental owners, other California cities like Santa
Monica, San Francisco, and Los Angeles have initiated much stricter regulations.
The regulations come in response to a combination of factors including
noise, trash, and effects on the property market produced by the short-term
renting practice. Additionally, it comes in response to purported instances
of discrimination in the renting practices of some rental owners.
Meanwhile, San Francisco has recently passed an amendment increasing its
regulations on short-term rentals. The city allows homeowners to rent
their rooms or homes for less than 90 days per year. The law requires
that rental hosts sign on to a city registry carry liability insurance,
and collect taxes. Some residents complain that the new legislation does
not go far enough in regulating the industry. Those opposing the short-term
rental industry also claim that it makes San Francisco’s already
high rent prices even higher.
Other California cities have also initiated regulations on the short-term
rental. While proponents of the industry plead that it helps many people
make ends-meet by supplementing their income, opponents of the industry
are concerned over noise and trash in local communities, as well as its
impact on the housing market.