SHORT TERM RENTALS City of Little Rock, - PowerPoint Presentation

1. SHORT TERM RENTALSCity of Little Rock,Planning & Development Department May, 2022

2. general Proponents of STRs suggest that hosting short-term guests enables residents to offset the cost of housing, make efficient use of otherwise unused space, and benefit directly from tourism dollars and cultural exchange, as well as be a tool to help revitalize an area. general Opponents suggest that the short-term rental of residential units negatively impact local housing stock (mostly in big major US cities), neighborhood quality (traffic/parking, noise, trash, transient population), and conventional hotels. Equally, opponents are concerned of uncaptured tax revenues.What is a Short Term Rental (STR)?A short-term rental (STR) refers to a room or housing unit that is rented to a person or group for a short period of time, typically under 30 nights. 

3. Current STR statistics for Little RockSource: LRCVB Annual Report (AirDNA, 2021)Year20202021Available Listings598667Booked Listings517600Occupancy Rate56%59%Avg. Daily Rate$111$138Revenue per Available Room6381

4. Short Term Rental Regulations in Arkansas:Little Rock(draft)FayettevilleHot SpringsNorth Little RockConwayAvailable Listings5438831,78799(currently modeling draft ordinance on Hot Springs)unknownTypesOwner occupied & non-owner occupiedOwner occupied & non-owner occupiedOwner occupied & non-owner occupiedOwner occupied & non-owner occupiedonly single-family, entire dwelling Business License Required✔✔✔✔✔Density LimitNoneMaximum density of 2% all units or 10% of single-family unitsMax 500 permits per yearMax 500 permits per yearNoneLicensing Fee$100Permit FeesPermit FeesPermit FeesStarting at $100Safety StandardsFire & carbon monoxide safetyAll applicable Unified Development Building CodeFire and building codesFire and building codesFire & carbon monoxide safety& applicable provisions for transient accomodationAnnual ActionsSafety Inspection,STR-1: $100 - $500STR-2: $500Renewal & Inspection Fee$50 per person/year based on occupancy$50 per person/year based on occupancyLate fees apply for renewalOwner Availability24/7 with 1 hour response24/7 with 3-hour response24/7 with 1 hour response24/7 with 1 hour response24/7 with 1 hour responseListing Source: LRCVB Annual Report (AirDNA, 2021)

5. How City of Little Rock is Handling STRs currently? Our current zoning code does address short term rentals, but a few amendments are needed to address this specific issue.Section 36-2 defines a dwelling or dwelling unit as “any room or group of rooms located within a structure forming a single habitable unit with facilities which are used or intended to be used for living, sleeping, cooking, eating and sanitation by one family. And defines of residence, “a building or part of a building containing one or more dwelling units or rooming units. Residence does not include: 1. such transient accommodation as a transient hotel, motel, tourist home or similar establishment.”In each of the City’s single and two-family residential zoning districts, the permitted uses are single family and/or two family residences. Based on the definition of residence, short term rental, of a portion or the entirety of a dwelling, is not a permitted use. The code currently does allow, as a Special Use Permit, Bed and Breakfast House which is defined as an owner occupied single-family residence which contains not more than five (5) guest rooms which for a fee may be occupied by a guest no longer than fourteen (14) consecutive days (Ordinance # 21168). Special uses require approval by the Planning Commission and are appealable to the Board of Directors. Section 36-54 of the code establishes the development criteria for bed and breakfast as follow: - The occupancy fee may include a continental breakfast (coffee, juice and pastry) to be served to paying guests with no full meals. - The owner must provide one (1) paved off-street parking space per guest room and one (1) additional for the residence use. - Allowable signage is that permitted by the single family standard. - No receptions, private parties or tours for a fee are allowed.

6. Proposed STR regulations in Little RockThe public and/or STR owners interests to be protected include:Maintaining the quality and character of the neighborhood, Controlling the spread of unregulated parking on residential streets, Preventing the conversion of residential neighborhood to commercial, Creating equity in municipal tax collection, Maintaining life-safety standards for visitors/renters, Allowing reasonable latitude for the use of private residences to generate income, and Assuring accountability for issues associated with short-term rentals

7. Comments received Little RockDesire not to allow STRs (concern about conflicts with Bill of Assurance)Desire to not regulate STRs at allConcerns about the parking requirements and not counting on-street parking, also concern impacts from parkingDefinition of Owner-occupied - should allow if one lives in the neighborhood or area not just the site/building All STRs should be treated the same (use the PC review method only or no review at all) Draft is burdensome and punitiveThe additional regulation of STRs would discourage the investment in ‘marginal’ neighborhoods Concern that zoning for STRs will have unintended consequences (use may more transient than zoning)Annual fee is too high (particularly for small owner STRs, current taxes should already pay for inspections)Needs to have some flexibility (different regulations for different areas of the City)Should have a density limit on number of STRsShould allow RVs to be used as STRsToo much power given to the ‘complaining party’Response time for ‘Responsibly Party’ too short (draft is 60 minutes)

8. What We ProposeChange the definition of Bed and Breakfast house as follows:Short Term Rental / Bed and Breakfast house means an owner-occupied single family or two family property which contains not more than five (5) guest rooms, no more than one (1) of which may be located in an approved accessory dwelling, which for a fee may be occupied by a guest for no longer than thirty (30) daysThis change would address owner-occupied short term rentals through the Special Use Permit (SUP) process.Currently existing STR Owner Occupied; Give a Grace Period (6 Months): come to City and register for SUP; Staff level review and approval of their application. The property owner is required to contact/notify adjacent property owners of the STR use and all neighbors must approve use. Owner agrees to comply with all requirements. If the owner does not live on the premise, it would be considered non-owner occupied and would have to be reviewed and approved through the Planned Zoning Development (PZD) process since the use of the property is no longer a dwelling and in fact has become a commercial use.

9. REVISE THE CURRENT EXISTING CODES :All short-term rentals, including those classified as bed and breakfasts shall obtain a business license to operate in the City; Adequate parking such as: on the same lot as the residence involved, for all permanent residents and guests (or approved parking plan);All proposed rentals must obtain an annual inspection from the Building Code Office and the Fire Marshal.  Working smoke detectors codes placed in all sleeping rooms and common areas as approved by city staff. Carbon monoxide detectors shall be installed as directed by city staff if there are fuel fired appliances in the unit or the unit has an attached garage. Five-pound ABC type extinguisher mounted where readily accessible.  All sleeping areas must have two ways of egress, one of which can be an operable window. There will be an annual fee to partly defray the cost of this service;Placard displaying address in each rental unit to help the renters tell where they are staying as an address in case of emergency; Codes for the unit containing a fireplace; there must be a record of a cleaning by a professional within the last year;  Designate a ‘Responsible Party’ with contact information to address complaints from guests and neighbors;  Require conformance to land use and life safety regulations (SUP or PZD process).What We Propose

10. DISSCUSSION:Questions?