Glendale to Reexamine Short-Term Rentals

By Julie BUTCHER

Glendale city officials will revisit the ordinance drafted over the summer to limit vacation and short-term rentals, such as those offered through companies like Airbnb and VRBO, in early December at the council meeting on either Dec. 3 or Dec. 10.

The draft ordinance was introduced in July and would have banned vacation rentals entirely in instances when the host is not present and limit home-sharing rentals when the host is present to 180 days per year. At a council meeting in October, after hearing from several hosts and representatives of Airbnb, councilmembers reconsidered their proposed total ban on vacation rentals and eliminated the cap on the number of home-sharing days allowed each year. Council asked city staff to meet with industry representatives and stakeholders in advance of further deliberations on the rules.

Glendale resident Herbert Milano has addressed the council on this issue several times since the introduction of the initial regulations. On Nov. 19, he summarized his ongoing testimony, responding to each of the five justifications the city has relied upon: concerns about “party houses” nuisances, health and sanitary issues; the changing character of neighborhoods; the potential loss of multi-family and affordable housing; and the collection of transit-occupancy taxes. Milano shared his own research, noting that of the approximately 1,500 loud noise and party complaints received by the city in 2018, only three were related to short-term rentals, one a serious party-house problem, one an Airbnb rental.

“These problems could easily be managed by the city and the Airbnb platform,” he said.

Estimating the average short-term rental in Glendale at two months per year, Milano expressed his concerns that the ordinance may be harmful to people who turned to short-term rentals to help pay their mortgage and were impacted by the recession. He urged the council to take “at least a year” to fully study the issue and its potential impacts.

In 2016 the city estimated 450 of these types of rentals were available in Glendale, reported senior assistant city attorney Yvette Neukian who helped draft the original ordinance. The city delayed acting at the time, waiting for the resolution of numerous outstanding lawsuits brought by other municipalities.

When staff updated the council on the issue in 2018, the council instructed staff to draft the restrictions. During an October council meeting, the council members expressed the overall pros and cons of the argument: nuisance complaints, late-night parties and thefts. Others pointed out the potential loss of rental units that might otherwise be available as housing. Some hosts said that they rely on the income and might not be able to stay in their homes without it.

As written, the rules included a six-month phase-in period and provide the same amount of time for hosts to secure a license.

There has been minimal pushback reported on some of the other provisions: requiring hosts to obtain a license from the city, reporting their earnings, and paying the same taxes as hotel operators pay.

There are no regulations or restrictions currently in place covering short-term or vacation rentals in Glendale. Right now, Airbnb lists more than 300 Glendale rentals. VRBO currently lists 710 houses, 504 condos/apartments, 54 cottages, and 54 bungalows (cottages and bungalows may be the same).

In an advocacy email message, local host Ruzanna Gulakyan wrote, “I am one of the hosts in the area and, being well aware of the positive impact the Airbnb has on our community, I thought it is my obligation to reach out to you all to share my insights.” Gulakyan ended the same communique, “Please also consider the power that the existing host community have in supporting the future elections and voicing their concerns if our voice is not heard.”

The City of Los Angeles passed its own ordinance this summer after more than three years of deliberating. LA’s regulations only permit primary residences to be rented and exclude buildings covered by rent control. Hosts pay an annual fee of $89 for renting up to 120 days per year, with some exceptions, and are obligated to meet established standards. In response to concerns about “party houses,” Los Angeles prohibits amplified sound past 10 p.m. and limits evening gatherings of more than eight adults. Only one set of guests is allowed at a time.

LA plans to enforce its regulations with the help of a third-party monitor.

It is reported that Airbnb spent approximately $1.3 million lobbying the city of Los Angeles.

Pasadena has reached an agreement with Airbnb requiring the platform to collect taxes for the city. West Hollywood and Santa Monica have battled in court with the home-sharing companies for years over enforcement and report ultimately experiencing a decrease in the number of illegal rentals since imposing new restrictions.