City scopes short-term rental rules

The discussion comes in the wake of community uproar spurred by a party last month at an Airbnb rental which ended with gunshots. While no one was injured in the incident, it did promptly inspire residents to flood a City Council meeting and call for more stringent controls designed to prevent another similarly unruly outburst.

In response, Mayor Gina Papan pledged a willingness on the part of officials to approve rules addressing the issues raised by residents.

“Absolutely,” responded Papan when asked if it is reasonable to expect councilmembers would direct staffers at the upcoming meeting to develop new policies. “I think it’s important for all cities throughout the Peninsula. We had preliminary regulations, but we need to tighten them up so we protect the citizens.”

For the company’s part, Airbnb said it is willing to work alongside officials to draft ordinances best suiting Millbrae, where 70 hosts list properties.

“We want to work with the city of Millbrae to help ensure that local residents can continue sharing their home and to help hosts comply with the city’s local laws,” said company spokeswoman Jasmine Mora in an email.

Mora added the incident last month was exceedingly rare, as the company offers countless listings across the globe with limited disruptions. But when such misbehavior does occur, she said the company takes pride in trying to be as responsive as possible to quelling local concerns. To that end, Papan lauded the company’s response as well as Airbnb’s willingness to collaborate on future regulations.

As it stands, city policy does not include specifications addressing the rentals hosted online which have become increasingly common in recent years, according to a city report. Such rentals are regulated under the code pertaining to boarding houses, according to the report detailing options for more refined rules.

Looking forward, opportunities include allowing enforcement on a complaint basis — responding to calls from neighbors frustrated by a short-term rental property nearby — or modifying the zoning code to require business licenses, hotel taxes and other payments designed to seek accountability from renters and property owners alike, according to the report.

The latter option, recommended by staff, may require additional city staffers to inventory all the properties listed on the short-term rental market then work to bring them in alignment with any new policies, according to the report.

While there are additional costs associated with bringing in the requisite help to monitor the industry, the report notes imposing taxes or fees could also work to build Millbrae’s income base.

Hotels are currently required to pay a 12 percent transient occupancy tax to the city when a visitor stays overnight, generating abut $8 million annually for the general fund.

During the previous discussion of short-term rentals, residents called at the very least for a tax to be imposed on such properties as a means of leveling the playing field with hotels and also generating revenue.

Papan also noted the opportunities presented by potential regulations, while adding officials’ attention was guided by an obligation to preserve public safety ahead of seeking additional funds.

“This is also a revenue stream, but the primary focus is protecting the residents,” she said.

Beyond the financial advantages, Papan added an enhanced regulation could also work to address complaints of boarding houses in Millbrae, such as shared living arrangements used by airline industry workers.

In previous discussions of the short-term rental market, some residents complained about properties which they claimed were being rented to house dozens of rotating pilots, airline attendants and more.

The properties allegedly were makeshift dormitories serving as crash pads for those who sought cheap and easy access to San Francisco International Airport. Residents suggested those who stayed there were disrespectful, disorderly and often compounded existing traffic and parking problems by relying on ridesharing services or rental cars to get to work.

Papan said she is uncertain how common such arrangements are in Millbrae, but said generally similar issues are faced by a handful of local communities near the airport.

Beyond neighborhood concerns, the report adds the short-term rental market may be further constraining an already limited housing market by giving another option to property owners who otherwise would seek more permanent tenants.

Considering the variety of potential areas of concern brought by the industry, Papan said she expects councilmembers to take an expansive view on reform while considering a variety of perspectives.

“We are taking an all-inclusive approach,” she said.

The Millbrae City Council meets 7 p.m. Tuesday, May 8, in City Hall, 621 Magnolia Ave.

austin@smdailyjournal.com

(650) 344-5200 ext. 105