0:00And welcome to our public safety and criminal justice committee hearing where we will review the current policies and procedures on managing short-term rentals in the City of Columbus.
0:10Several city staff members are in in attendance today to present and share these processes, share more about these processes.
0:18In addition, we will learn about policies and ordinances in other cities in relation to regulation regulating short-term rentals.
0:25I would like to welcome our presenters today, Deputy Chief Smith Weir from the Columbus Division of Police, Tony Celebris, Deputy Director of the Department of Building and Zoning Services, Kevin McCain, Senior Policy Advisor for Columbus City Council, and Rashida Hansard, the Director of Income Tax for the Auditor's Office.
0:44Of course, we have other staff here today, but we thank you for coming in to help answer any questions.
0:49I'm Councilmember Emmanuel Reemy, I chair the public safety and criminal justice committee.
0:53I'd like to thank my colleague, Councilmember Otto Beatty, for attending today.
0:58And a reminder that this hearing is currently live on YouTube and Facebook and also live and being recorded for rebroadcast on CTB Columbus's government television channel three.
1:09I want to share before we get begin that this hearing is exploratory and informational in nature.
1:16That means we are not currently considering any language changes to the Columbus City Code.
1:21Our goal today is to share with the community the work city staff currently engage in to regulate short-term rentals, hear about what other cities are doing, and then hear from our residents.
1:32My office will work in partnership with the community going into the new year to identify the best improvements possible to ordinances and policies that work for everyone.
1:42So without further ado, I would like to turn the floor over to our first presenter, Deputy Chief Smith Weir from the Columbus Division of Chief.
1:50The Deputy Chief will present on the current situation regarding trespassing individuals at short-term rentals.
1:56So thank you all for thank you, sir, for being here.
1:59And Deputy Chief, the floor is yours.
2:05On behalf of Chief Elaine Bryant and the rest of the Division of Police, thank you for the opportunity to come here and address City Council today.
2:35Typically, when officers respond to residents or properties in the City of Columbus, they are contacting an owner or somebody or a responsible party of that of that establishment.
2:48When we are responding to short-term rentals, uh, the agent or owner is not always readily available, nor is a landlord or a responsible party.
2:57We receive these calls for service all hours of the day and night.
3:01Oftentimes when the responsible parties are at work or at home or even asleep.
3:07Sometimes when seconds count, when minutes count when we have to a situation we are dealing with, uh we are faced with a situation where we do not have the ability to contact where the owner is unavailable.
3:19In those situations with businesses and other properties throughout the City of Columbus, for years, the City of Columbus and Division of Police have utilized the agent authorization letters or otherwise known as the trespass authorization letters.
3:33These are signed by the owner or the landlord or responsible party and authorize the division of police and the city of Columbus to act on agents on the owner's behalf to conduct trespass of individuals that are on the property that are not acting legally or under the authority or the rules of the short-term rental in this instance.
3:55The division of police currently has 2,273 agent authorization letters on file from properties throughout the City of Columbus and utilize these on a day-to-day basis throughout the City of Columbus.
4:07It is our belief that requiring agent authorization letters to be signed as part of the permitting process for short-term rentals would be a responsible way for the short-term rental companies or owners to authorize us to solve problems when they are unavailable to solve them themselves.
4:28Thank you, Deputy Chief.
4:29Um, thinking about, you know, I maybe we should have prefaced this a little bit that you know, one of the things that we're trying to solve here is the few uh short-term rentals that happen to have parties, whether they be, you know, more than likely the hosts don't know about it, but but certainly this does happen in many of the platforms.
4:49They ban those types, you know, that type of number of people and et cetera, but we know that they've occurred across the city.
5:00Um I'm familiar with, certainly per familiar as a community leader back in my old days uh with trespass forms and trying to, you know, especially at shopping centers and others where you might have semis parking and other you know reasons why you might need to get on to the property.
5:14Um we used to encourage the owners to sign those things.
5:18I kind of want to just illustrate to the hosts again, like what tell me some types of things that these things would apply for beyond a party for for instance.
5:28Like would when would this be applicable for you know to make sure that our officers can get on the property?
5:35Yeah, I obviously the the number one reason or the number one thing we're concerned about are those large parties that have resulted in uh altercations or on a couple instances they've resulted in shootings over the past couple years.
5:47Uh that being said, the number one offense that we've responded to at uh short-term rentals has been domestic violence.
5:55Uh and then second, you know, secondary to that are domestic disturbances, which don't haven't risen to the level of violence yet, uh, but in which we have parties that are uh arguing that are uh in conflict that are having uh having issues and having troubles.
6:10So in that instance, having an agent authorization, even though the illegal activity has not occurred yet, whether that assault is not occurred yet, but when we're trying to solve the problem of separating the parties, uh that would give legal authority for officers to act as an agent on behalf of the owner and trespass one of those individuals or both of those individuals from that property uh, you know, for the duration of that that evening or for the duration of their contract, uh their rental contract.
6:37Uh so in that instance, it would be a way that prior to uh situation escalating the violence, we could solve the problem uh in instances where the owner or agent may be unavailable.
6:49So explain today what what some of the problems have been for officers, you know, without this form today.
6:56Yeah, I I think you know, again, the the big problem has been those large-scale parties.
7:02Um because they typically, when we're getting called, it's middle of the night, it's 11, 12, 1 in the morning.
7:08Uh officers are there.
7:09Uh we've had instances where there are promoters that are promoting these parties that are at the door that are checking, you know, that are basically charging admission.
7:19Uh the line is out the door down the sidewalk, uh, and officers are trying to deal with this uh in you know, in real time, uh in the middle of the night, and try to figure out who the owner of the rental is, try to find the contact information, try to wake them up and contact them.
7:36Uh meanwhile, we've got uh you know young adults and even some juveniles that are trying to attend this party that are in their house, and the officers are again trying to get the authorization to solve the problem, to you know, break up the party to get you know those juveniles uh taken home uh to get the young adults to to go their separate ways.
7:57Um and in in the matter of minutes, those are those are important things for us to have to deal with.
8:02And sometimes it's uh it's very difficult in the middle of the night to get a hold of a responsible party.
8:07If there was a trespass form, how would that same scenario be handled?
8:11Well, if we had the trespass form on site and uh we had that authorization, officers uh the way we work it is that those authorizations, once they're signed, get uploaded to a system that the officers have access to in their cruisers on their phones, uh 24 hours a day, seven days a week.
8:27So whenever the time is, uh once they identify that the property itself is a short-term rental, they can look up, make sure that that authorization form has been signed, and then they have the legal authority to detain somebody.
8:39They have the legal authority to issue that trespass.
8:42If the you know the rules that have been established in the permitting process are not being followed, we don't have to wait for the owner uh to answer the phone to drive from an hour away or or wherever they may be.
8:53Uh we don't have to wait for that to solve the problem.
8:56And in the middle of the night, like I said, as things are happening, uh, we're not always uh you know afforded the luxury of time.
9:06Councilmember, do you have any questions?
9:09Well, we appreciate the recommendation.
9:12I know these discussions have been occurring and trying to figure out ways that we can help solve that one that one problem in particular.
9:21Um, you know, it's it's clear based on our our um regulations now, they can't have parties, and certainly, like I said earlier, the host or the uh platforms typically do not allow them as well.
9:34But we we do not want those that type of violence in our community.
9:37And so just this is the way that we think might have the most impact on solving, you know, or at least minimizing this type of a problem in the future.
9:46So appreciate the recommendation.
9:48We're certainly um as we move forward, we'll consider you know how that'll look and hopefully make it as easy as possible through the application process just to make it one more thing you sign.
10:00So want to thank you for coming in today, Deputy Chief.
10:04I know you got to run, but uh appreciate it.
10:07Thank you for your time.
10:08Yeah, thank you, sir.
10:10Our next presenter is uh Tony Celabriasy, the deputy director of the Department of Building and Zoning Services.
10:15He is here to talk to us about the current short-term rental permitting process.
10:20So, Deputy Director, I'm gonna send it right over to you.
10:25Thank you, uh Councilmember Remy, Councilmember Beatty, thank you for being here and for the opportunity for building zoning services to weigh in on this on this critical matter.
10:34Uh, I'm I'm accompanied tonight with uh by uh Latasha Kearns, who is our licensing officer in the licensing division within the department, and then with our other deputy director, uh Wendy Boots.
10:46Uh and so I've got a short presentation we can go through.
10:54And so the initial short-term rental or STR legislation passed in 2018 and was uh modified again in 2021 over concerns with neighborhood and guest safety.
11:08Um at that time, uh we restricted who can apply for this to the property owner or a permanent occupant, which helped re helped us get more accountability in that process.
11:22We also implemented background checks uh for all the relative parties, uh, not only the applicant, but uh their statutory agent, their partner or managing member uh from that.
11:33We also added a 24 hour local contact.
11:36We've had uh good communication with uh public safety, the police uh with this, and we continue to try to uh improve that communication.
11:46Uh we also require um background checks on whether it's a host or a property manager, just depending on what type of of uh setup that the owner has put into place for that short-term rental.
12:01Uh to give you a background, this these are the numbers of the short-term rental licenses per year.
12:07We are right now at a 1535.
12:10That's the blue number.
12:11As you can see, uh, we started this in 18 and then 19, we had quite a few.
12:18Uh COVID took a big chunk out of us in 2020, and then it has grown and held steady over the last three years.
12:25Uh, the red bars up there are the units that are that do not have uh or that are non-primary uh resident, which means that uh the owner does not live there.
12:38Um it is a house or a unit that is or a carriage house or an ADU that is uh rented out as a uh short-term rental, whereas the remainder above the red line to the top, those are short-term rentals such as uh a room or a portion of a house where the owner lives on site.
13:00And so as you can see, we've got a lot of units that don't have an owner on site, they're an investment property uh for these individuals to uh uh to rent out and uh and provide themselves with income.
13:15So talk about a little bit about the application process and the information we we require.
13:20We do require a 24-hour local contact, as I said earlier, phone, email, and their home address.
13:27Um we also require information about the host, whoever is actually doing the listing of the property on an online platform.
13:36We want to know who that is.
13:38Uh we want to know who the man property manager if one is being used, and then we work with uh number of bedrooms as the county has it recorded, and our maximum number of occupants is three times that number of bedrooms.
13:54And some of that is derived from the state building code with how many people can be housed in a single bedroom before you turn into uh a different different class of house.
14:05Um we also want to know all the listing platforms.
14:08We've got very good relationships with most of the platforms, and uh they work well with us when we have questions or concerns.
14:16Uh and then we also want to know um the list of all other short-term rental properties that an individual has within the city.
14:24Um again, unfortunately, with our experience through code enforcement over the years and with short-term rentals, um, you know, some landlords or owners, uh, if they treat one of their properties without without respect and don't maintain it, they tend to do that to other properties.
14:40And so we want to know what their portfolio is so that we can work with them to get them up to up to uh uh you know get the place up to speed so that it's uh it's a good uh contributing um parcel within the city.
15:00Um so right now the the applicant provides a proof of identity, they're resident, uh a letter of good standing from Columbus Division of Income Tax.
15:07Uh again, we do BCI background.
15:09Um there is ways for people to do it in person in our office or online uh through the web check agency.
15:16They also, if they're an out-of-state owner, fast fingerprints outlets are nationwide, and they can do that there as an application fee of $20.
15:25Should they get approved for a uh a short-term rental, and that part of that is the background checks sometimes uh disqualify people.
15:34But if you do get approved, then if you are a permanent occupant in the in the house, uh it's $75.
15:42If it is a vacant unit that the entire structure is or unit is uh rented out, and that's $150 per year, and is one year uh license from the date of issuance.
15:55Um talk a little bit about uh suspension or or penalties.
15:59Um licenses can be suspended or revoked for uh uh with any felony within the last seven years.
16:07Uh mainly we look at drug-related activity, prostitution, human trafficking, gang related or offenses of violence.
16:15Uh and then also we do uh account for working with with police department uh excessive calls for service of three or more in a 12-month period.
16:24Some of those can be noise or trash, but there can also be other issues that uh when PD is out there.
16:31There's a level of of subjectivity that we have to apply, and we try to use some common sense.
16:36Um, but obviously we want owners with these with owners that are quality individuals that are going to um you know be renting out a space that someone would want to be in and not disrupting the rest of the neighborhood.
16:51Um so with that, I'm willing to answer any questions.
16:54I'm looking forward to hearing what a lot of the private sector folks have to say, and and we we recognize that uh you know city code can always be made better, and so we're willing to sit down and listen and and potentially adjust the uh the code going forward.
17:08So thanks for the opportunity.
17:10Yeah, thank you, Deputy Director.
17:12Um, there are several cities around that have required uh, for instance, the license verification to be the onus to be on the platform.
17:22Um I'm just curious if if we were to do something move in that direction where before there's different models, but one is before they're ever listed on say an Airbnb or VRBO, the platform itself have has verified the license with the city.
17:40Um would that be something that would be helpful to you today?
17:43Because I believe the staff is doing it backwards, right?
17:46Is that is that correct?
17:48Yeah, we would we would anything that helps us verify or helps the the platforms verify on the front end before anything is registered, that would prohibit or that would prevent uh what we do see today, which is that there's a number of individuals that just blatantly decide, well, cost of doing businesses, I'm gonna list it, and if I get caught, I get caught, then I'll ask for forgiveness later.
18:10I'd much rather have us be able to run that BCI check and ensure that we've got people with uh with good backgrounds running these operate running these these facilities.
18:23Well, I know one of the things that I want to talk about is a little bit more, you know, at some point in time get moving this process a little bit more online and and updating it.
18:32We've you know, looking at other cities, it's pretty easy online to submit an application.
18:39The the licensing section uh was was moved over to BZS uh about a year and a half ago, was it?
18:45About a year and a half ago, and we uh among with among other uh licenses that we issue, and we are in the process of working that into our online um platforms so that it does make it easier because bottom line is we don't want to be a hindrance for that for people to do this, but we do want to make want to make it as easy as possible for them to get a apply, and then uh we can do our our proportion, our review on the back end and and then hopefully move forward and have a good Airbnb or a good short-term rental.
19:15So just to expound upon you know the process.
19:19So these these guys are over licensing.
19:21But when there are complaints that come in about a property, say trash or other things that like that, who which part of the the zone or zoning process?
19:31Who's going out there and investigating that?
19:33So the majority of the complaints will um aside from maybe the 911 complaints that that the police department handles in real time, uh, we would get complaints through 311.
19:45Uh also I think the licensing division occasionally gets some, but mainly through 311, and that would be um funneled most likely to code uh code enforcement, which is also a division within our department.
20:00They would send a code officer out there with something like trash or debris, probably within uh 48 hours to get out there and look and see if there's a problem, and if there is, they would write of a violation for it.
20:10And then they would do the research through our systems to uh see who owns it if they can't, if it's not in our system, then they will begin working with the auditor's office to find out who's the owner, and we will track them down and try to get them, get them set up properly.
20:27Have there been any issues contacting the owners or the contact person that's listed on the on the license?
20:34I don't think we've we've had much issue.
20:36Our code officers are very good sleuths.
20:39Um they know they know a lot of different ways to track down who is an actual owner, even with it being an LLC.
20:45Uh, because as we know, uh so many of these investment properties now are being put into individual LLCs and they have a a um an agent somewhere, usually an attorney.
20:56And so there is some hoops for our folks to jump through, and that's why you know we do ask for a lot of this information from multiple people's information so we can track it down a little easier.
21:07All right, thank you, Deputy Director.
21:11I appreciate the uh opportunity to hear from you this morning or this this evening, excuse me.
21:17Our next um we're gonna, you know, I appreciate the work that the licensing section is doing.
21:22I know that it was a big move over to uh from one department division of police over to building and zoning services, but we're we're happy with the work that's being done, to make sure people are properly permitted and and all the due diligence.
21:35So I want to thank both of you guys for that.
21:37And then we're gonna continue to work uh with your office to ensure that there's continuity and efficiency for the residents of Columbus.
21:46So thank you very much.
21:47Our next presenter is Kevin McCain, our senior policy advisor with Columbus City Council.
21:52Kevin will be walking us through how other cities are handling neighbor notification, for instance, when a license is issued while we're unsure which direction we're gonna go.
22:02We would like to take to take um the opportunity to hear some legislative solutions to community concerns.
22:08So, Kevin, the floor is yours.
22:11Thank you, and good afternoon, Chair Remy.
22:14Uh, Councilmember Beatty, my name is Kevin McCain, senior policy advisor to Columbus City Council as a member of the legislative research office.
22:22Here this afternoon to present a sample of our research on short-term rental notification requirements.
22:29I'll begin by reiterating that we are not advocating for any of these procedures.
22:34Our job here today is to simply share what other cities do when it comes to short-term rentals and notifying neighbors.
22:41We do not have any draft language prepared to pursue because at this stage we are still exploring what options are out there.
22:48We looked at examples from here in Ohio, the U.S.
22:52and even some international destinations to provide an all-encompassing comparison.
22:57Cities in Ohio will present the most obvious comparisons as we all operate under Ohio revised code, so it's probably easiest to consider code language and policy from those examples we found.
23:15So there are four things to consider when regarding neighborhood notifications that we were looking at.
23:20Um and comparing these from municipalities all over kind of gives us a context for developing or amending our own Columbus City code here if we choose to go that route.
23:30But typically we looked at four things.
23:33Who would be responsible for sending the notice to neighbors?
23:37When is it sent, who must be notified, and the method of verification.
23:44Our current practice here in Columbus, uh, as uh said earlier in the presentation, we do collect 24-7 local contact information from our hosts during the application process period.
23:58This information is subject to public records requests.
24:01It's important to note that.
24:03Um but collecting this information was always intended to assist both the hosts and the neighbors to connect when minor issues might arise.
24:13Um, you know, examples being noise, trash, parking, uh, something along those lines.
24:19That information has never been made public, uh, although again it is uh uh subject to public records requests.
24:29This is just excuse me.
24:31This is just an uh list of some of the cities that we examined their code.
24:36So again, we looked at the state of Ohio, some like cities here in the United States, and then again, also looked around the world um at some popular tourist destinations to see what it is, how they handle their neighbor notification requirements there as well.
25:00Looking uh to our neighbors to the north in Toledo, uh, they have in their code in Chapter 70203 F that applicants must send notice to adjacent directly across and diagonally across properties within 48 hours of applying for a short-term rental permit.
25:14Um they can do so by first class mail or hand delivery to all property owners.
25:21Uh and that's something that we saw in a lot of cities around the world that there are options for hosts to notify their neighbors.
25:33Our neighbors to the immediate west in Grandview Heights.
25:36Uh the applicant must notify surrounding parcels as part of the initial planning commission application process.
25:43So, in order to receive a permit there, you have to uh be approved by the planning commission in Grandview Heights.
25:50Um there is a hundred dollar application fee to the building and zoning uh department, but it is the applicant that is required to properly notify the surrounding parcels as part of the Planning Commission application.
26:07Some of the cities across the country that we found that require a special notification, Columbus, Georgia, the applicant must notify adjacent property owners with a proof of receipt, such as a neighbor's signature or a certified mail return receipt.
26:22Uh and then in Sedona, Arizona, we found they require notification by certified mail or hand delivery prior to offering the property on any short-term rental platform.
26:37A few other unique requirements that we found.
26:39Austin, Texas was a city that we found where the city is responsible for handling the notification to adjacent neighbors, uh, with the applicant paying a $50 notification fee as part of the licensing process.
26:52Most cities that we saw, it was the host themselves who were responsible, but in Austin, it's the city.
26:58In Scottsdale, Arizona, the owner must notify adjacent and across the street properties, but also included that you had to notify all units on the same floor in a multifamily dwelling complex.
27:11Um, and then they have within 30 days of receiving the license.
27:14So a lot of cities have different timing requirements of when this needs to be done.
27:19Portland, Oregon uh has a notification requirement and also a two-year renewal in case you have new neighbors that move in.
27:28Um so that would that process is on a cycle.
27:31Uh and also it uh it requires uh hosts to notify the neighborhood association or a civic association, or here in Columbus, that would probably be the area commission in neighborhoods as well.
27:44Norman Oklahoma, uh they sent or require notification with information for the owner and the local contact, but as well as code enforcement and the police resource lines as well.
28:01These are some examples of cities that require the 24-7 local contact information to be shared.
28:07Some cities just require notification that this is going to be a short-term rental, but there are a lot of cities that require the 24-7 contact local uh local information to be shared as well.
28:18Some of those municipalities go a step further uh by including a response time mandate.
28:23So the city of Toledo uh says that uh host must respond within 45 minutes.
28:29Summit County Colorado, one hour, lots of different cities around the world have uh that included as well.
28:36So some key considerations uh to consider for city council if they're going to go down this route is uh the timing of the notification, whether or not this is something that would take place on the front end before a permit is approved or after.
28:54Um then also we would have to consider proof and verification and how we are handling making sure that the notification occurs.
29:06And then again, the the example from Austin, Texas is unique in that it has the city who is responsible for notifying all the neighbors.
29:14That is something we would consider as well.
29:16And then again, the ongoing requirement that you see in Portland, Oregon for every two years renewal cycle.
29:25Uh something I just wanted to point out that while City Council considers all the menu of options that we have listed here and many more, uh, there are resources for neighbors currently.
29:36Uh we have worked with the platforms, both Airbnb, VRBO, Expedia, you know, for many years here, and we know that the platforms take these issues seriously, and they have neighbor resources that they promote as well.
29:51Um I didn't want to miss an opportunity to share that that Airbnb, you can go in to their website and request a call, or you can um you know uh report a concern online.
30:00That Airbnb, you can go in to their website and request a call, or you can you know, uh report a concern online.
30:04VRBO has a very good website that does very similar things.
30:07So neighbors should know that while city council is considering regulations, there are currently resources that exist uh and help.
30:17With that, happy to answer any questions.
30:21I think uh one of the things uh about the Airbnb and B RBO line, my understanding from the host alliance when we met with them was that they um are very responsive.
30:32So if there's a complaint that goes into Airbnb, they're typically getting a hold of their contact uh immediately.
30:41Um thank you for your research on this.
30:45We're hopeful that the um short-term rental owners, the hosts themselves, and certainly the community members, you know, give us feedback on some of these ideas and certainly as we look at the legislative opportunities to um make improvements on our art uh a pretty robust uh set of legislation to begin with, thanks to you and and former council members that that sat in the rule.
31:12So uh our final city staff member um tonight to answer a few questions is Rasita Hansered, the director of income tax at the city auditor's office.
31:22Rashida, my goal is to learn a little bit more about tax processing as it relates to short-term rentals.
31:28So could you walk through some of this, like what what taxes apply to short-term rentals, for instance?
31:35Good evening, Councilmember Remy and Councilmember Batty and those in attendance, and thank you on behalf of City Auditor Megan Kilgore for the opportunity to speak a little bit about tax collection for short-term rental.
31:48Uh simply to answer the first question, uh the taxes that apply to short-term rentals is a 5.1 percent excise tax.
31:58That tax is uh lodged against the guest and it is collected by the host.
32:11A five point one percent excise lodging tax.
32:14Okay, what we're calling it, yes.
32:17And then um how are they collected today?
32:22So currently at this time, when someone goes to a short-term rental, they are automatically charged that 5.1% excise tax.
32:31That tax is subsequently collected by the host or for our purposes, the the owner of the property, and that host is thereafter required to file a tax return and pay the tax for the preceding month.
32:47So they file for the preceding month that it's collected on the 20th of the following month.
32:53So, for example, if I'm renting a property in January, I'm going to be remitting the return in the tax February 20th.
33:03And then are those typically can they be filed electronically or are they filed uh through the mail?
33:09Uh what how how does that work?
33:12Um, and that's a terrific question because at this time, 98% of short-term rental taxes are paid and collected online through our online tax platform CRISP.
33:24Um this was implemented for short-term rental tax um in 2023, 2023, excuse me, and since then 98 percent.
33:35I would probably to be honest, think we're closer to 99 percent, but there's uh no 100 of anything when it comes to tax collection.
33:44But we are very much there close to that.
33:47That would be a miracle if if it was, right?
33:55So um there is uh so of the one the 5.1 percent, excuse me, 0.5% is remitted to the city as an administrative fee to assist with the work that we do to collect it.
34:08Um the re the remainder of that 5.1 percent, all of it goes back to a certain degree to the community.
34:15And so let me give you those specific numbers.
34:18Uh 2.39% goes to the Columbus Convention and Visitors Bureau, 1.68% goes to the Cultural Services and Community Enrichment.
34:28Uh uh 60% goes to emergency human services fund for the city, and uh 0.43% goes to uh the Affordable Housing Trust.
34:45Um do you have a sense?
34:50I I didn't ask you this question ahead of time, but do you have a sense like how many um returns are being uh remitted every month?
35:00We do, and I was actually able to look at this before coming over.
35:02So currently we have in our system uh about 1600 uh short-term rental accounts, and of those 1600, about 1200 are currently active.
35:17And those 400 can be inactive for a number of reasons.
35:20For the most part, it's because they don't have a current short-term rental letter of good standing.
35:28Councilmember, do you have anything?
35:31Well, thank you for giving us a little bit of additional information on the taxation side of things.
35:37You know, I one of the things we've talked about, and I think some of the limitations that we have with our system is having the platform can collect the the tax.
35:45Um, but certainly, you know, that may be something you know to look at in the future is you upgrade and and everything else.
35:54Um, you know, we want to make sure that again trying to make it as com as easy as possible for everybody involved.
36:02But I thank you for coming in today and and having this discussion.
36:08So I'm gonna move on now to our speakers.
36:10I appreciate the opportunity to hear from our presenters.
36:14Um we have uh five individuals that signed up this evening.
36:17So we're gonna invite those speakers to the podium to share their thoughts for up to three minutes.
36:23Um when you get to the podium, please state your name for the record.
36:27And if those who signed up are not present, we will move on to the next speaker that signed up.
36:31We also had four written testimonies that will be submitted to the clerk's office.
36:36So um I'm gonna first up ask Dave Doctor um to come forward.
36:43And again, you have three minutes.
36:46Um thank you for coming down and welcome to council.
36:49Appreciate your testimony.
36:53Hello, and thank you for the opportunity today.
36:55Um I do think the short-term rental license number needs to be on the rental so that people know they're renting from a house that's licensed for the consumer.
37:03Because otherwise they can't tell them.
37:05Also, it sounds like it would help out the organizations here.
37:08Um I really do feel you have to have some contact name that is able to respond within a reasonable amount of time, whether it be an hour or 45 minutes, whatever.
37:15We should have numbers out there because as residents right now, I keep seeing about party houses or other problems, and I don't know how well they're being addressed.
37:21And I know I'm addressing you guys right now, but I'm allowed to ask questions this direction too, like on the short-term rentals.
37:28How often are licenses being revoked?
37:31What we can do, actually, I'll let you give your testimony.
37:35Uh, and then um we'll have somebody follow up with you, you know, okay right after.
37:38And then also like what percentage of the calls of police are going on are short-term rentals that are actually have a license versus don't have a license for a called short-term rentals.
37:46Uh rental units, I shared a Philadelphia one, but I also know do we require smoke detectors and carbon monoxide detectors in the homes?
37:55Quiet hours should be after 10 o'clock.
37:57You know, so basically, if it's there's so noise after 10, you can notify um the the either the 311 or the the landlord first, they have an hour basically to rectify the situation for the true quiet hours, which are currently 11 o'clock in most of the city here.
38:13I would assume it's still 11.
38:15Um then my feeling is I don't know, it says three per bedrooms the current code, three seems maybe high.
38:23I mean, do a three-bedroom house with nine people.
38:25Is that typical for the residential area for most of the homes in the area?
38:28We get because it's still your do where these homes are rented in residential areas.
38:33So it's two maybe a more accurate number.
38:35And again, if there's no problems, no one's gonna know how many people sleep in there.
38:38I recognize that, but for the problems is three really what a residential neighborhood is meant to be is residential.
38:47And then the enforcement side again, having the contact and the other stuff, and maybe I don't know if they can do a deposit.
38:52So if the call does come in for a thing, so it's some sort of a fine for the noise that goes to the person renting it to help offset the cost that's taking us, whether police calls or other stuff.
39:02Um and then some sort of strikes.
39:03I saw the three or four strikes.
39:05I don't know how, you know, I agree with that in our rolling average to make sure we're getting rid of the problem ones and keeping things, you know.
39:12There are plenty of good short-term rentals.
39:14I think they are never gonna go away.
39:15We just need to be managing the trouble ones.
39:19And then I do think as a neighbor you should know how to call because I I saw the helplines, but we really don't know the listing number or the address and a lot of short-term rentals.
39:27Say this area until you actually have the rental, you don't know the address.
39:30So having either a contact name or the permit number, so we can say this permit number is causing a problem in the neighborhood would help the residents.
39:39Does that make sense?
39:40Okay, that's really my thoughts.
39:43Well, we appreciate those that lists, and again, um we'll have I'll have somebody follow up with you to answer some of the specific questions.
39:50But thank you so much for coming down this evening.
39:52We thank you for the opportunity.
39:54Our next uh uh speaker is uh Susan Summerfield.
39:59Summerfeld, excuse me.
40:00Summerfeld, excuse me.
40:00Uh, and then after that, we'll have Charles Fitch.
40:15Um thank you for letting me speak today.
40:18Um, my name is Susan Sommerfeld.
40:21I live at 51 East Lincoln Street.
40:24Um my house is um entirely surrounded by 14 short-term rentals.
40:31Um that would be on Russell, Brickle, Kerr, and Lincoln.
40:38I didn't go as far as Pearl.
40:41I didn't go up to Summit, and I didn't go over to Warren Street.
40:46There's 14 in that small area.
40:49Um I'm actually not here to complain about that.
40:53Um, there's out of the 140 short-term rentals um in Italian village, these 140 are businesses.
41:02I don't think there's a strong enough recognition that this is a business.
41:07Whether you own one or five or like one of my neighbors, 15.
41:14Um, it's a business.
41:18The one that's right next door to me, um sleeps 16 people.
41:25He's very happy to advertise that.
41:29And it's a four-bedroom.
41:31Um, 50 Lincoln, right across the street, which is the bed and breakfast, also sleeps about 16 people.
41:40So I fail to see the difference between those two.
41:44Um 50 Lincoln, however, is zoned commercial in some way, and had to comply with a lot of requirements before they could be in business.
41:56Um they also have signage, good lighting, they take care of the front yard.
42:04Uh their parking area is clean, well tended.
42:08Um there's the building is maintained.
42:14Um, it's it's a lovely addition to the neighborhood.
42:19Um, the one next door to me is an eyesore.
42:24It's got rotted windowsills, broken screen door, it's got a rubble front yard.
42:29Um, I haul the garbage cans in back and forth.
42:33Um, otherwise they'd sit in the middle of the street.
42:36He's he's a lovely young man.
42:39I haven't had problems with any of the tenants, you know, the guests.
42:43It's been quiet, they've been fine.
42:47But is this an addition to the neighborhood?
42:50Is this really what we want?
42:53He's basically being extractive.
42:56He bought the house and was um, I don't know, I'd have to call it lying to all of us, told us all he was gonna live there.
43:06And as time went on, he wasn't gonna live there.
43:09It just slowly, you know.
43:11So is he getting the homeowner tax exemption?
43:16Did he get a loan because it was going to be a primary residence, even though he bought a house in Dublin and moved there three months later?
43:25You know, I mean, these are he would he went in with the idea that he was gonna extract as much value as possible and then sell.
43:35So I don't think Italian Village is not opposed to the businesses sprinkled through the neighborhood.
43:41That's not what the issue is.
43:42The issue is there's no pride in owning this business.
43:47There's they're not adding anything to the neighborhood.
43:50There's not sprinklers in there.
43:52There's no way I have no idea if they could get out if something happened.
43:57So I would I think it should be probably dealt with in a similar way to a bed and breakfast.
44:04Thank you so much, Miss Summerfield.
44:06We put Summerfield, we appreciate you coming down today.
44:15Okay, let the record reflect that Charles Fitch is not here.
44:18Nat Shepard, and then Rob Lowenstein, you're next.
44:28Please state your name and you have three minutes.
44:32My name is Nat Shepherd.
44:33Uh I'm a personal friend of Susan.
44:36Um, and it's gonna sound like I'm saying some things that are uh different than her opinions, but uh I want to start by saying um thank you, Susan, and those are valid concerns, and uh I want to echo them.
44:48Um I run a business that provides co-hosting services and operational support for owners of short-term rentals.
44:58Um we're we're a co-hosting business.
45:00My company manages 26 short-term rental units for 21 different owners.
45:06So far and away, um, mom and pop owners that have moved out of their primary residence for whatever reason, um, decided to rent it, maybe moved out of state, um, and then hired me to help with that.
45:21Um so my business does that.
45:22We also assist them with filing their monthly tax reports.
45:26I have an assistant that files 21 monthly tax reports.
45:29Um so the first point I like to make is that um the I would strongly support having the platforms collect and remit the taxes.
45:37Uh, a lot of other large cities are doing that.
45:39Airbnb and Verbo easily have that capability.
45:42Uh, I would support it in a legislation change.
45:47Um I want to make a comment on notifications and letters to abutting properties.
45:53I I think it's challenging depending on the neighborhood.
45:57There are some of us that live in Italian village in the short north where short-term rentals are extremely dense.
46:04Um I live in Victorian Village, not far from Susan, and I have a four-unit short-term rental building across the alley from me.
46:13I have an eight unit across the street from me.
46:16Um I would get flooded with letters for properties that I already know about, and I wouldn't find it useful.
46:22So I would encourage council and and our legislative review teams to consider the type of property or maybe the zoning of the neighborhood when thinking about a notification requirement.
46:33Um, you know, I I don't for me managing 20 some rentals that would mean you know hand delivering potentially letters to adjacent properties of 20 houses.
46:48It would, you know, I'd have to play um mailman for a couple of days to get that done.
46:53Um other topics that I would encourage the council and our committees to review.
47:01Um around the application and renewal process.
47:06Uh I I strongly support the background check, but the renewal process is equally cumbersome.
47:14Um I would support an online renewal.
47:17Cincinnati, for example, has a three-year license.
47:19Um, and as long as there are no strikes against that property, the license remains valid.
47:24Indianapolis has a one-time lifetime license that is simply renewed with an online form every year, um, and the owner doesn't have to do anything unless there have been strikes against the property.
47:36So I would support considering that.
47:38Um I see that I'm at my time.
47:40I have uh a few quick points if that's all right.
47:43Um I want to touch on occupancy limits.
47:48Um I would encourage consideration of a different rule there.
47:54I know there are some state uh residential codes that we need to try to follow.
47:58Um but I think hosts would agree that a one-bedroom property could comfortably accommodate four people, uh two in a bedroom and two on a pull-out couch is a fairly common layout.
48:09I would I think if we were to look online, we'd see a lot of properties that are currently doing that.
48:14Um but on the flip side, a five-bedroom property sleeping 15 people seems like a lot and a potential risk.
48:21So I encourage a review of that.
48:24Um another point that I don't think has been made yet is multifamily property.
48:30Um at some point a multifamily building becomes effectively a hotel, a four-unit small multifamily that's four Airbnbs, maybe not, uh, but an eight or ten or twelve unit building that has eight or ten or twelve short-term rental licenses is effectively a hotel.
48:52So I don't know where that distinction lies or how to approach it, but I think it'd be appropriate to review.
49:01Um yeah, and then the final point I want to make.
49:05Um, you know, I I'd encourage um data sharing with these platforms.
49:10Um I think collecting and remitting that tax online will be a huge help.
49:14We use a software that looks at and analyzes market data when I go on there.
49:18I see 3100 active short-term rentals in Columbus, which is a lot more than the number of licenses we've issued or the number of people that are paying tax.
49:27So I think there's potentially a lot of tax revenue there that's going missed that could be recovered if the platforms were required to collect that.
49:34Yeah, thank you so much.
49:35I appreciate you coming down and sharing your thoughts, Mr.
49:39Have a great evening.
49:40Yeah, are you willing to you know just engage with us more?
49:43You seem to know a lot about the industry and things like that.
49:48And in your um particular customers, um, what from a business standpoint, why do they choose to go into short-term rentals versus uh full-time rentals?
50:00Sure, great question.
50:01Um the 21, are they all in the Victorian village, uh Italian village area?
50:08Yeah, I'm I live in Victorian Village, and that's where my connections are.
50:12So most of my clients are in Victorian Village.
50:15We have several homes in Clintonville.
50:17Um, and we go out, I have one that's in actually in Westerville municipality and one in Reynoldsburg as well.
50:23Um but typically it's uh an owner that has moved out of their primary residence and they were living there at the time and it was furnished, and they decided that they didn't want to move all their furniture, they want to turn it into a rental property since it was already furnished.
50:37Path of least resistance was to hire a hosting company and run it as a short-term rental.
50:42They still get their own license and hold the license themselves and go through the background check requirement.
50:48Um, but then my company is typically handling the day-to-day operation of that.
50:52We also have um clients that are out of state that um maybe have family here and bought a house to live in when they come here, or a client that has business in Columbus, buys a house here to come stay in once a month when they're here, and then hires my business to look after it when they're not here.
51:11And in the Columbus marketplace, would you say that the yield on a short-term rental is exceeds the yield on a um in most instances on a full-time rental unit?
51:25And I know it can be neighborhood by neighborhood difference, but yes, it does.
51:29Um my opinion is that there are a few market segments that perform better than others.
51:36Um large houses that can accommodate a lot of guests will typically produce more revenue than they would as a long-term rental, to Susan's point.
51:45Um and then I think smaller studio units that are near downtown or Ohio State also have a much greater margin than how they could perform as a long-term rental.
52:00I I'm connected to Jeff Smith and the Clamas Host Alliance as well.
52:03I meant to say that in my introduction, but I'd be happy to participate in follow-up discussions.
52:09And and what type of, you know, what type of trends are you seeing in our market?
52:13I mean, is our market becoming, you know, oversaturated or anything like that?
52:18Is that starting to I know there's some markets mainly in tourist areas, but people like to come to Columbus where there becomes a somewhat of an oversaturation where the yields start going down and people get foreclosed on and other things like that or whatever.
52:35Are you starting to see it see that in Columbus?
52:37I I think I've seen that with some of my own clients not seeing the revenue numbers that they would like and deciding to sell or move into a long-term lease situation.
52:47So uh I don't know definitively if we've hit market saturation, but I would say that it there is some pressure there and listings that have performed well in previous years, maybe uh maybe performing not quite as well more recently.
53:04Thank you very much for that additional information.
53:08Thank you so much again.
53:09Thank you, Councilmember.
53:23I was like, I thought that was wrong.
53:31Um, thank you for uh uh the opportunity to be here, Councilman Remy, Councilman Beatty and City staff.
53:38Um as some of you know, I'm the zoning chair of the Near East Area Commission.
53:43About a year and a half ago, I think there were four or five of the commissions represented at a meeting we had with Councilman Dorans on this issue.
53:53And although the meeting was courteous at the end of it, it was a bit discouraging because um we got the message that um uh maybe not, you know, this might not move forward in any direction.
54:07I do appreciate that the 2021 amendments did improve the situation.
54:13But there are two basic things that our group was concerned about.
54:18One is simply the proliferation of short-term rentals in particular neighborhoods, concentrations of them, and the other one was the lack of regulation, uh particularly in the area of safety.
54:32And I think these remain concerns whether uh short-term rentals are continuing to proliferate at the rate they were before, I'm not all sure.
54:41Maybe it has slowed down.
54:42Um the problem with with this is that short-term rentals really bring nothing uh much of value to the neighborhoods in which they're located.
54:54You know, on I live a block east of the East Market, and we have two of them on the block face across the street from me.
55:01And there's a house that the owners put a lot of money into to fix up, but it didn't sell at half a million.
55:09Is she going to turn around and make it another short-term rental?
55:13Given that there's no control over how many of these.
55:16What we're really hoping for are neighbors to move in.
55:19As we all know, we have a shortage of housing in the community, and this is doing nothing to help.
55:27I understand the economic incentive to try to make the most out of your property, and we do look to market forces as much as we can.
55:36But I I would just emphasize we have a housing shortage.
55:41These are not really doing anything much to help our neighborhood.
55:45We just watch tourists go in and out of them.
55:50And I so I would encourage that we do something in addition to the notification things that you are talking about, that's fine.
56:00But could we limit the number of short-term rentals in a neighborhood, either by census track, zip code, or distance to other short-term rentals, or how many of them on a block phase, some kind of control so that in the areas that they are most focused on that each property as it becomes available doesn't become another short-term rental.
56:23And then in terms of safety issues, um, we we are having something to to do with the number of um uh or the character of the owners and all.
56:37But why are we not inspecting these for safety?
56:41Um there are open stairways to the upper floors.
56:45We have a whole bunch of uh unrelated people there.
56:49These are the kinds of things that we regulate in terms of other related uses like rooming houses or congregate housing, but we don't regulate it here.
56:59Uh we don't have minimum kitchen and bath facility requirements.
57:04We don't have off-street parking requirements and so forth.
57:07So we're not concerned about an owner occupant of a house having a basement or an extra bedroom, or even under the new ordinance uh if they added an ADU, although ADUs were basically promoted in terms of you know, elderly members of the family having a place to stay.
57:29A lot of them are going to become short-term rentals.
57:32Um we would just uh like to limit, we would just like to limit them in the areas like right where near I live.
57:42It isn't anything like it is in the short north, as you heard that testimony.
57:46It's not as intense as that.
57:48But even there, the the person who spoke was, you know, would rather have neighbors than she would rather have transient people coming and going as if you know every building is a hotel.
58:03So we would ask your consideration of those issues.
58:07Thank you very much, and thank you for your um your commitment to the North Near East Area Commission.
58:16Well, thank you very much to all of our um public speakers this evening.
58:20I'd like to end this hearing by thanking our presenters for your participation tonight and the great work that you do throughout the year.
58:27Um short-term rentals bring value to our communities, but also need to be monitored and permitted in order to achieve neighborhood safety and quality of life.
58:36Tonight's presentations are a demonstration of our city's commitment to ensuring that short-term rentals work for all.
58:44Please be in touch with our office as we move into the new year with potential updates to our ordinances and policies.
58:50I want to thank our council team, Nancy Pryor Sully, Pedro Mejia, Dr.
58:55Tanisha Pruitt, the communications team, and to the CTV team for their assistance and preparing for today's hearing.
59:02I also want to thank the community for their support and for and for tuning in to today's hearing.
59:08Thank you, everyone.
59:09Stay safe and stay warm and have a great rest of your evening.
59:13This concludes our hearing.