Home sharing ordiance

[BBatesokc]

Saw this in the paper this week....

http://newsok.com/oklahoma-city-cons...rticle/5538663

Thoughts?


My personal opinion is that there needs to be some leeway here - but not sure what it should be.

I can see people abusing this practice by basically turning their property into full time motels and neighbors having to deal with it while the property owner profits at everyone else's loss.

But, it's unrealistic to expect a person who simply rents out a room or their house only occasionally to have a public hearing and pay thousands in permits.

[Zuplar]

I saw this the other day mentioned somewhere and thought how unrealistic it would probably be for the occasional room or house rental. Would probably keep a lot of people from using this service. I agree with you there has got to be some kind of limit maybe like you can only rent it so many times a year or month without a permit. Will be interesting to see what happens.

[FighttheGoodFight]

I think they should crack down on the "companies" that rent out tons of spaces across city full time. I don't think an individual doing it is a bad thing but when you have these operators basically turning these rooms in hotels it can be bad.

You also get into another issue of insurance, liability and safety regulations.

[BLJR]

I have heard that the hotel industry isn't pumped up about these places either. They are putting a dent in hotel revenue, and the younger generation (millenials) prefer Airbnb over hotels also.

[FighttheGoodFight]

I have heard that the hotel industry isn't pumped up about these places either. They are putting a dent in hotel revenue, and the younger generation (millenials) prefer Airbnb over hotels also.

I'm sure they are. It is another disrupted technology (like uber/lyft) that people are using because it is cheaper. The companies see it as bad because they have to follow a ton of rules and fees as Airbnb can skirt local laws.

[BBatesokc]

I have heard that the hotel industry isn't pumped up about these places either. They are putting a dent in hotel revenue, and the younger generation (millenials) prefer Airbnb over hotels also.

I have to say, we often rent Airbnb offerings whenever we travel. I'm not into the 'rent just a room', but we've rented entire homes in OKC, Breckenridge, Costa Rica and Belize on more than one occasion and it is always so much better than traditional motels/hotels.

I find guests in OKC also prefer the Airbnb concept over traditional guest houses.

I could definitely see the need for a permit, I just think it needs to be rethought.

[bradh]

We just stayed at our first AirBNB place in Aurora, CO this past week. The house definitely appeared it is a full time rental place. It was in an okay neighborhood, but the house was beautifully remodeled and comfortably held myself, wife, 6 year old, 50lb dog and another friend of ours.

[Zorba]

I use short term rentals a decent amount, mostly because the product is much better/different than hotels. But I really don't have an issue with requiring a permit and charging normal taxes on the units. Although I think the whole public hearings and a $2700 fee is way over the top for a one of person.

Most of the places I've rented, I've had to pay taxes on, so I have a feeling that will be coming to OKC too, and the city will likely back off the more over the top requirements.

[jerrywall]

I know someone who run an Airbnb out of their house. They have two rooms, 5 beds, and can accommodate 6 people. Their place has a totally separate private residence. I could see this being a problem for the neighbors, and it definitely has crossed a line from occasionally renting out a room or renting while you're on vacation out of town, to being a full business. And hotels are regulated, inspected, are in line with ADA requirements, etc. So definitely something to be looked at. I do think the fee is too high.

[catch22]

The unintended consequence of this is that excessive fees and tangling red tape will force many of the "weekend" rental providers to stop listing their rooms which can affect incomes and discretionary spending. The people who want to keep listing their homes and rooms will remove them from AirBNB and instead list on craigslist for cash. This forces renters and providers to both enter the dark side of the internet and where transactions are not secure, no one is reviewed, and people can easily be scammed or robbed.

This will impact budget travelers with fewer options, higher prices to cover fees, and compromise safety by avoiding AirBNB all together.

I think some regulation in the market is good for the city as well as the buyers and sellers, but excessive government intervention here will negatively affect buyers and sellers and the result is no one wins but the hotel industry and craigslist scammers.

[Harbinger]

The unintended consequence of this is that excessive fees and tangling red tape will force many of the "weekend" rental providers to stop listing their rooms which can affect incomes and discretionary spending. The people who want to keep listing their homes and rooms will remove them from AirBNB and instead list on craigslist for cash. This forces renters and providers to both enter the dark side of the internet and where transactions are not secure, no one is reviewed, and people can easily be scammed or robbed.

This will impact budget travelers with fewer options, higher prices to cover fees, and compromise safety by avoiding AirBNB all together.

I think some regulation in the market is good for the city as well as the buyers and sellers, but excessive government intervention here will negatively affect buyers and sellers and the result is no one wins but the hotel industry and craigslist scammers.

Yes.
Something that isn't accounted for in the NewsOK article is the tourism benefits in other areas because of AirBnB guests. There are a number of guests that come to OKC BECAUSE there are cheaper options-guests who come who wouldn't have considered traveling because of high hotel rates. More lodging options may adversely affect the hotel/motel industry, but it has a positive economic effect on entertainment, dining, and retail. If the hotel industry wants to win over AirBnBers, then adapt.

[bradh]

I tend to go towards AirBNB when I have a big group, bringing the kiddo, or bringing the dog on a trip. If it's just me and wife, we're likely to just get a hotel in the middle of it all since we're typically out and about the entire time we're on vacation anyway. I'll still look at the AirBNB options but unless it's more than just us we're going hotel usually.

[Richard at Remax]

I might be wrong, but read somewhere that if you rent two or more rooms you have to have a permit. One room you don't have to, but still have to pay hotel tax, ect on all monies collected.

[Pete]

Council to consider restrictions on home sharing in two historic neighborhoods

While the city considers an ordinance to address home sharing businesses like Airbnb, HomeAway and Vacation Rentals by Owner, an amendment is to be voted on that places much stronger restrictions on two exclusive neighborhoods.

Councilwoman Meg Salyer, who represents Ward 6 in central Oklahoma City, has introduced an amendment that singles out Heritage Hills and Edgemere Park – known for historic and increasingly expensive homes – and requires residents there to obtain a Special Exception from the Board of Adjustment and to be present during any rental.

The amendment also proposes reducing the Special Exception fee from $1,200 to $300.

The over-arching ordinance for the entire city of Oklahoma City has yet to be formally adopted and outlines new rules for home sharing, such as rentals not to exceed 30 consequetive days, compliance with applicable building or fire codes, obtaining a license and paying fees and hotel taxes.

After first being heard and forwarded by the Planning Commission with no action on July 12th, the ordinance was introduced to council on August 14th.. The annual license would be $24. In advance of final adoption of the new ordiance, the City has already started to collect fees.

A group of concerned homeowners has hired local attorney Cameron Spradling to represent their interest as they generally oppose the amendment proposed by Salyer.

Spradling has forwarded a memorandum to the Municipal Counselor's office that outlines several issues that could result in lawsuits against the city should such restrictions be enacted. The memorandum cites case law and suggests the amendment may be 'arbitrary or caprcious', the Special Exception may represent an ulawful tax, and the problematic nature of singling out two neighborhoods without showing detrimental impact or why they would be subject to special treatment.

The memo goes on to point out that requiring the 'owner must occupy' clause improperly imposes a restriction without showing a rational basis for treating these specific areas in a unique manner.

Airbnb is a privately-held company based in San Francisco that is the most popular service for facilitating home sharing, with 2017 revenues reaching $2.6 billion. Guests search for lodging on their online site and are matched with home owners who are willing to rent out some or part of their residences. The practice has seen rapid growth in recent years as travelers seek alternatives to traditional hotels.

Edgemere Park is roughly bounded by NW 30th, NW 36th, Walker and I-235. Heritage Hills is located between the Midtown and Uptown 23rd Steet districts just north of downtown.

The new lodging ordinance being considered in Oklahoma City is in direct response to services such as Airbnb and its competitors and an attempt to regulate and collect tax similar to those paid by hotels and motels.

An online search through Airbnb's website yields more than 300 current listings within the boundaries of Oklahoma City.

City Council will consider the amendment at their next meeting, Tuesday, September 25th.

[Mballard85]

I don,t really see the point of this, you can rent mansions all over the country on these platforms, but apparently not in Edgemere or Heritage Hills.

[Pete]

The city council meeting tomorrow should be very interesting.

Spradling -- the attorney representing homeowners who do not want this -- is set to speak and outline how the city could be opening itself up to all types of legal problems.

And you can bet there will be cries of elitism.

[CloudDeckMedia]

Certainly similar ordinances have been effectively implemented elsewhere in the US. How do they differ from this proposal?

[Pete]

Certainly similar ordinances have been effectively implemented elsewhere in the US. How do they differ from this proposal?

The issue is not the city's proposed ordinance which follows those in other cities but rather this particular amendment designed to make it almost impossible to rent out homes in HH and Edgemere.

[CloudDeckMedia]

The issue is not the city's proposed ordinance which follows those in other cities but rather this particular amendment designed to make it almost impossible to rent out homes in HH and Edgemere.

Is this based upon their designation as historic neighborhoods?

[Pete]

Is this based upon their designation as historic neighborhoods?

No specific reasons were given for singling out these particular neighborhoods.

Lots of other historic 'hoods in OKC that were not included.

[chuck5815]

Sounds like the Good Councilwoman could be opening the city up to Takings liability.

[CloudDeckMedia]

Bob Blackburn (OK Historical Society) led a bike tour in Heritage Hills earlier this month. He briefly discussed the history of rental houses in OKC, and how they played a role in HH seeking its historic designation. Briefly, during the Great Depression homeowners took in boarders to help make ends meet. WWII resulted in a scarcity of building materials and labor, and after the war, returning GIs sought rental housing. Some rental houses fell into disrepair and were demolished, and others were demolished for commercial development, so Heritage Hills residents sought protection through historic preservation restrictions. Personally I'm in favor of this, both as a way to preserve a beautiful neighborhood of beautiful homes, and to also preserve the neighborhood's non-commercial status.

[Pete]

^
There are already all types of restrictions and covenants for various districts and neighborhoods. You can't touch the outside of a home in dozens of neighborhoods without prior approval from the Historic Preservation Commission.

This amendment specifically seeks to target 2 particular neighborhoods, not all those that are historic or beautiful.

[SouthSide]

When I was looking for a hotel in London, I noticed Marriott is offering Airbnb like accommodations in certain markets. At a minimum rental platforms should be forced to collect taxes.

[Pete]

Just learned this item will be continued (no formal vote today) for further analysis and public input.