Agenda Packet_2025-08-05 - Laserfiche WebLink

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Long-Term Solutions to Short-Term Rentals 2024-2025 Orange County Grand Jury Page 6 o Review of websites, interviews, testimonials, and other materials produced by companies serving the STR and hospitality markets or from contractors with products for cities managing STRs o Review of academic papers on STRs and their history o Review of non-governmental agency white papers on STRs • In-person interviews of city personnel • Review of: o City meeting minutes and recordings of residents’ concerns o Various cities’ STR complaint processes o City ordinances as well as state statutes o California Coastal Commission guidance o Third-party STR surveillance software used by cities o Various cities’ STR complaints from June 2022 through June 2024 o Relevant legal rulings • Analysis of TOT INVESTIGATION The Grand Jury learned that in most cases, STR operators are required to obtain a business license, register with their city for a permit, submit reports, pass an inspection, and pay TOT. This is a city-level tax levied on any temporary lodging that is occupied for fewer than thirty days. All hotels, motels, and bed and breakfasts must remit this tax. Short-term rentals permitting and other policies vary by city. A short-term rental’s TOT is paid either monthly, quarterly, or annually. Most cities allowing STRs require a twenty-four-hour, in-person contact to address complaints, within either thirty or sixty minutes. Short-term rental operators often use one of the numerous OBAs, such as VRBO (from the phrase Vacation Rentals by Owner), Airbnb, Zumper, and HomeAway. In addition, some operators may advertise via direct booking sites (a website for their specific property) or through local rental agents. Multiple OBAs mean that a unique property may have as many as a dozen listings. City Council 10 – 8 8/5/2025