City council revenue stream & STRs

My beach area has a over 30,000 STR condo and home rentals. COVID-19 has deeply affected the local tourism dependent economy. Local occupancy tax revenue is down.

The majority of the vacationers this summer have been young. There has been an extraordinarily large number of rowdy, cops called to the scene, parties

The city council did a STR regulation workshop. I think most of the proposed regulations will pass.

Proposed regulations included:
-2.5 guests per parking space (most condos including 3& 4 BR) limited to 5 guests. Most houses limited to 10 guests (some beach houses were designed to sleep 20 or more)
-$100 licensing fee
-city conducted safety inspections with FEES
-owner Or manager must be able to be on-site within 30 minutes if emergency Or party reported
-signage indicating residence is used for STR and contact information & license number
-min age to rent 25 a residence (hotels still age 18).
-fines & penalties for non-compliance

None of these sound unreasonable for my condo ( if I owned a large house I would be angry). BUT during a year when STRs are taking a financial beating the city is seeking to raise $3m-$6m on the backs of struggling property owners (btw full time resident property tax rates are 1/2 2nd home rates)

To be first in line for a STR license & inspection I’m probably going to list with property management company which will cut my revenue to 1/2 if I get any rentals.

What a pain.

This is a cautionary tale to watch your local government. They want/need revenue to replace the 2020 deficits.

For me the additional fees and requirements feel like being kicked when I’m down.


I think a lot of us feel that way. Every time I see someone without a mask or hear some idiot remark on TV that’s anti science I feel that way. Not being able to travel grates on me. I can’t think of a single summer since I was an 18 that I didn’t take a vacation of some kind.

As for the regulations, I feel for you. I’m still here in my no regulations (other than tax) city. The regulations themselves sound perfectly reasonable, the timing is terrible of course. There’s still a lot of economic pain to come I’m afraid.


So, funny story. Where I live we can’t get the City Council to even attempt to regulate it some. In fact, since the city has no provisions for STR they don’t even have a way to issue us a business license. Having said that, they DO get paid sales tax by Airbnb (we both looked into it). For now they get sales tax and we get to call it personal income. Win/win.

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My area had left STRs alone until they noticed the tax revenue stream was seriously diminished. It will be interesting to see how other tourism dependent areas adjust.

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I pay for membership on a web site, VRMB, hosted by Matt Landau, and his advice ( regarding STR legislation) is to get with other Hosts, and form a group that can represent our interests- similar to the Hotel lobbyists.
I’m only netting it out- and not very well- but you get the idea. Don’t be passive because city council members only know what they read, and the news is negative. They have to be educated about the benefits of STR’s, and the work that we do as Hosts.
Hook up with local businesses and get them on board. You can promote local vendors. How about your cleaners? Cleaning standards, etc.
His point: put a face to the local STR industry. Together we are stronger. Meetup is a good start?