HomeMy WebLinkAbout11. 161220 RBO FinalTO:
FROM
DATE:
SUBJE
I.
II.
Vail
: Fina
Eco
Dec
ECT: RBO
SUMMARY
Since Janu
businesses
$155,242 in
companies
The purpose
tax collectio
Staff is ask
2017 and c
Destimetric
BACKGRO
Communitie
challenges
Council pas
obtained by
the cost of t
unit fee is a
located in Z
units within
location of t
If an owner
individual lic
service cove
owner’s beh
that rental o
Town Cou
ance Depar
nomic Deve
cember 20,
O Update
Y
uary 1, 201
(representi
n lodging tax
licensed in V
e of this mem
ons, as well a
king for Co
consideratio
cs.
UND
es nationwid
in enforcem
ssed an Ord
y owners ren
the license i
assessed ba
Zone 2. Sh
the Town o
he managem
is (only) usi
cense is not
ers the indiv
half. Howev
or managem
ncil
rtment
elopment D
2016
6 the town
ng 335 uni
x from renta
Vail, another
mo is to upd
as quantifyin
ouncil’s sup
on of the fir
de are strugg
ent of local
dinance (eff
nting units fo
s $150; for r
ased on loca
ort term ren
of Vail bound
ment office.
ing a proper
t required.
vidual owner
ver if the ow
ent service,
Department
has licens
ts) and has
al activity thr
r 620 short t
date Council
ng the RBO
pport and fe
rst phase o
gling to qua
regulations
fective Jan
or greater th
rentals of gr
ation of the u
ntal establis
daries are r
rty managem
The Town o
r and the ma
wner advertis
then a busin
t
sed approxim
s collected
rough Septe
erm rental u
with plans f
inventory in
eedback re
of a compre
antify the nu
and impacts
1, 2016) re
han 14 days
reater than tw
unit(s): $17
hments or p
equired to o
ment service
of Vail busin
anager is als
ses and rent
ness license
mately 310
$443,548 in
ember. Thr
units are also
for further co
Vail.
egarding pla
ehensive RB
mber of RB
s to long ter
equiring an
s per year. If
wo units the
7 per unit if l
property ma
obtain a bus
e or short ter
ness license
so responsib
ts the unit in
e is required
individual
n sales tax
rough 24 pro
o on the mar
ompliance of
ans for com
BO study to
BO units and
rm housing.
annual bus
f two or few
e cost is $32
located in Z
anagement c
siness licens
rm rental es
e for that pro
ble for remitt
ndependentl
.
“Rental by
x and an es
operty mana
rket.
f RBO licens
mpliance ef
o be compl
d have enco
In the fall
iness licens
wer units are
25. In additio
one 1 and $
companies t
se regardles
stablishment
operty mana
ting sales ta
ly of rentals
Owner”
stimated
agement
sing and
fforts in
leted by
ountered
of 2015,
se to be
e rented,
on, a per
$12.75 if
that rent
ss of the
then an
agement
x on the
through
- 2 -
Sales and lodging taxes have always been required of any short term rental activities, however the
new licensing has helped to educate owners in this responsibility as well.
All advertisements for rental by owner units must include a Town of Vail sales tax account number.
There are no land use regulations or additional/increased building code requirements affecting short
term rentals of individual properties in Vail. The town does not monitor or rate properties for quality of
amenities or guest service levels.
Implementation of RBO regulations
Once the Ordinance was passed, staff began steps to implement the licensing requirement. Several
press releases were posted in the newspaper and on the town’s website. In September 2015 a
postcard mailing went to all homeowners in Vail to educate them on the new requirements. Beginning
January 1 2016, business license applications started coming in.
Throughout 2016, staff has conducted some research of rental listings to verify compliance and has
responded to various calls from concerned neighbors reporting suspected rental activity. Research of
“rental by owner” listings can be quite lengthy, as the rental websites do not provide adequate
information in order to identify property owners. Once research is completed and if the property or
owner is not licensed already, we have a process to send out letters or make phone calls to the
owners to encourage compliance. To improve the amount of resources dedicated to compliance
efforts, Council approved the addition of a part time employee in the 2017 budget discussions.
For the RBO accounts that have been licensed, staff made changes in the sales tax software to
enable better tracking of these accounts. Specifically, a new “RBO” category was created within the
lodging segment, and parcel numbers were added to the account information. The parcel number
enables staff to easily confirm if a unit is licensed when we get a call from a concerned neighbor for
example. The “RBO” category enables reporting of sales taxes collected specific to that type of
rental, separate from property management companies or other lodging properties and hotels.
III. DISCUSSION
Recently, staff has been working with Destimetrics to come up with a method to determine the
number of short term rental units, investigate other resort communities’ efforts and attempt to quantify
the impact to long term housing inventory and the lodging market in Vail. In tonight’s budget
supplemental ordinance, staff is requesting $24,150 to begin the first phase of work to be completed
by Destimetrics. A memo from Destimetrics is attached which provides more detail on the proposed
RBO study.
Town staff has also identified a workplan as we head into 2017, which is summarized in the chart
below along with tasks identified in the first phase of the Destimetrics RBO proposal.
- 3 -
Staff plans to work on the following objectives in the upcoming year:
Workplan TOV Destimetrics
1. Better Quantify the short term rental market inventory
Establish an initial benchmark of estimated number of RBO
units and the respective use
Obtain addresses of all units represented by property
management companies.
Create a report of units represented by currently licensed
RBO accounts
Map out the licensed units on the town’s website for use by
both internal staff tracking compliance and available to the
public for verification of licensing
X
X
X
X
2. Increase compliance efforts
Hire approved part time employee for internet research
Coordinate with Code Enforcement Officers to inform us of
complaints that indicate short term rental activity
An assessment of the Vail licensing, compliance and
enforcement compared to other communities and related
recommendations such as new technology
X
X
X
3. Increase public education on short term rental requirements
Another outreach effort similar to when the ordinance went
into effect
Establish a ‘”hotline” that concerned citizens / neighbors can
report potential short term rental activity
Reach out to Vail Board of Realtors to communicate with real
estate agents about short term rental requirements
X
X
X
4. Determine impact of RBO market on long term housing X
IV. ACTION FROM COUNCIL
Does Council agree with staff’s recommended workplan?
Does Council support proceeding with the first phase of Destimetric’s proposal?
Town of Vail: Rent By Owner Plan
Memorandum
To: Town of Vail Staff, Council
From: Ralf Garrison, DestiMetrics, in collaboration with Chris Cares, RRC Associates
Ref: 2017 Comprehensive Rent-by-Owner Study – Phase 1 Primary Strategies
Date: Dec 11, 2016
This summarizes a proposed agreement between Town of Vail and DestiMetrics/RRC Associates, to
provide research/consulting services related to monitoring and measuring the rent-by-owner market in
Vail and its related impacts to the broader resort/community as provided below and represents one of
two phases proposed and targeted for 2017 implementation.
OBJECTIVE: Conduct a research study that monitors and measures the rent-by-owner housing market
metrics along with its relationship to the broader short term rental and overall bed base. The result will
provide the Town of Vail staff, Council and committees with the best available information to better
inform their policy decisions and actions. Upon completion, the related deliverables will be:
- A broad-based inventory of housing/bed-base, specific short term rental inventory, including an
estimate of rent-by-owner units specifically in the Town of Vail, along with several other metrics
including their average rate, occupancy, and overall economic contribution.
- The results of a review of current Town of Vail Rent-by-Owner policies and procedures including
licensing, compliance and enforcement, along with a comparative evaluation of several other
similar resort town programs.
- A set of recommendations and sample strategies for consideration and optional implementation,
along with such specific implementation tactics and enabling technology as can be provided within
the scope of this project phase.
Summary:
- Project Name : Vail Rent- by-Owner 2017 Comprehensive Study: - Phase 1 Primary Strategies
- Funds Request: $ 24,150
- Work Start Date: Immediately upon Execution
- Resulting Deliverable Date: No later than April 1, 2017