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Item 3A .. AGENDA ITEM #3A JUNE L, 2006 STAFF REPORT City of Atlantic Beach Commission Meeting AGENDA ITEM: Report on Short-term Rentals DATE: May 31, 2006 SUBMITTED BY: David E. Thompson, Chief of Police/DPS Alex Sherrer, Code Enforcement Officer BACKGROUND: Complaints: The Code Enforcement Officer has received complaints from full time residents ~"' concerned primarily with complaints about lack of parking, loud parties at all hours, trash and beer cans left all over the place and the inability to utilize common facilities such as the community pool at Seaplace. One of the Condos was advertising their ability to '"` accommodate as many 11 people. In 2005, thirty-one (31) short-term rentals were identified: nineteen (19) condominiums, '""' eleven (11) houses and one (1) garage apartment. Rentals varied from $400.00 per week to $3,500.00 a month. All properties involved were residential, and none were licensed or inspected as required by the state and therefore were not paying any of the required ~"" taxes. At the time of the investigation, only one (1) property was advertising for 3-day rentals. All of the violations involving houses and the garage apartment were discovered through researching the classifieds and Internet, while most of the condominiums were the result of complaints from full time residents. Most of the complaints and violations came from Seaplace at 901 Ocean Blvd, whose covenants and res~ictions forbid such rentals. Most owners were quick to respond to their notices, and even the realtors involved with short- term rentals, with the exception of one, agreed to stop advertising short-term rentals. Code Enforcement was successful in gaining compliance with the exception of the single realty company. This year there was a marked improvement with only twelve (12) short-term rentals identified, several of which were being advertised by the same realty company noted above, that was unwilling to comply. There have been three (3) houses and nine (9) condominiums being advertised and, as before, most of the violations discovered were the result of complaints from full time residents at Seaplace. Rental prices varied from $500.00 a week to $5,500.00 a month and once again these were residential properties that are not permitted to rent on a short-term basis and are not being licensed and inspected as required by state. Four (4) of the twelve (12) short-term rentals were advertising as daily rentals as well. Since amending Chapter 24, Sec 24-17 to better ... AGENDA ITEb1 #3A JUNE 12, 2006 ~. define our already existing restriction against short-term rentals, Code Enforcement has ~„ received two (2) additional complaints about short-term rentals at Seaplace and one (1)complaint at the Cloisters. Code Amendments: The prohibition of short-term rentals in Atlantic Beach under Chapter 24, Sec 24-17 & ~. 24-82 is nothing new. Atlantic Beach has restricted short-term rentals since at least 1990. This was previously defined under the definitions section of Chapter 24, but some people argued that a definition was not an ordinance. The new section of the proposed amendment is the inclusion of the wording that forbids the advertising of short-term rentals. Since short-term rentals are illegal, we should not allow people or businesses to advertise something that violates the law. One realtor who insisted on continuing to advertise short-term rentals claimed it was only a violation if they were caught renting short term. If we eliminate the advertising, then we will reduce the incidences of unlawful short-term rentals. Additionally, Florida Statute 509.242 (1) (g) requires properties rented or advertised to be rented more then 3 times a yeaz for less than 30 days have to be licensed and inspected by '"' the state. The state requires taxes to be paid to the county and the state. The majority of the short-term rentals aze not owned by Florida residents, and in one case ~"' several condos aze owned by the same person, who resides in Ohio. Cleazly, this is an example of running a business in a residential neighborhood. BUDGET: None RECOMMENDATIONS: For information only ATTACHMENTS: REVIEWED BY CITY ITEM NUMBER: