Model Legislation for Short-Term Online Rentals. Menu

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1 Section 1 - Definitions Model Legislation for Short-Term Online Rentals Menu Short-term rental unit means a residential dwelling of any type in the [state/city of ], including, but not limited to, a single-family residence, apartment, condominium or cooperative unit, in which a person can obtain sleeping accommodations for less than 30 days, but not including a duly licensed bed and breakfast, inn, hotel, or motel, or a property subject to a timeshare plan as defined by 11 USC section 101(53D). Short-term rental listing service means a business which facilitates or arranges the renting of short-term rental units, whether through the listing of short-term rental units on a website or through other means. Short-term rental provider means a person who receives payment for owning or operating a short-term rental unit which is occupied for more than 30 days in a calendar year, in the aggregate, by persons renting the unit for less than 30 consecutive days. Substantial provider means a short-term rental provider who owns or operates 4 or fewer short-term rental units.* Large provider means a short-term rental provider who owns or operates 5 or more, but fewer than 10, short-term rental units.* Jumbo provider means a short-term rental provider who owns or operates 10 or more shortterm rental units or 5 or more short-term rental units in a single multi-unit building.* Section 2 - Short-Term Rental Listing Service Responsibilities a) Responsibility to Verify - A short-term rental listing service shall verify, in the manner described in subsection (b), that each short-term rental provider listed on its website or otherwise utilizing its services is in compliance with all laws and regulations with which such short-term rental provider is required to comply. Such verification shall be completed before the short-term rental provider initially utilizes the services of the short-term rental listing service, and annually thereafter. b) Verification Procedures A short-term rental listing service shall, with respect to each shortterm rental provider, comply with subsection (a) by - 1. obtaining proof that the short-term rental provider has complied with any applicable registration requirements and received any license, certificate of occupancy, or other licenses or certifications which such short-term rental provider is required to have, unless no such registration, licenses or certifications are required, in which case the short-term rental listing service shall verify that there are no applicable zoning, land *The various regulatory provisions on this Menu of options can be applied selectively to one or more of these three classifications of short-term rental providers.

2 use, or housing laws or regulations which would prohibit the use of the unit as a short-term rental unit; 2. obtaining any federal, state, and local tax taxpayer identification numbers issued to the short-term rental provider; and 3. posting a statement on its website that all short-term rental providers must comply with all applicable federal, state, and municipal laws and regulations, and conspicuously displaying on its website all such federal and state laws, and all such laws and regulations of each municipality with a population over 250,000 in which a short-term rental unit, being listed through such short-term rental listing service, is located. c) Penalties Failure to comply with any requirement of subsection (a), (b)(1), or (b)(2) is subject to a fine of $5000 per each short-term rental unit for which there is such a failure, and failure to comply with subsection (b)(3) is subject to a fine of $5000 per day of violation. Section 3 Licensing & Registration a) In General No short-term rental provider may engage in the business of providing a shortterm rental unit unless such short-term rental provider is in compliance with the requirements of this section. b) Business License - A short-term rental provider shall obtain a business license from the [Department of ]. c) Health & Safety Inspection - A short-term rental provider shall have each unit inspected by the [Department of ] and obtain certification that the unit is suitable for occupancy. d) Registration & Disclosures - A short-term rental provider shall register each short-term rental unit with the [Department of ], and such registration shall include- 1.the name, street address, mailing address, address and telephone number of the short-term rental provider, and of the owner of the property, if those are different individuals; 2.the name, street address, mailing address, address and telephone number of a local responsible contact for the short-term rental unit; 3.the street address, and any apartment number, of the short-term rental unit; 4.proof of at least $250,000 in property and casualty insurance which covers damage done by, or suffered by, a renter; 5.affirmation by the short-term rental provider that the short-term rental unit does not violate any zoning, planning, business licensing or other laws applicable to short-term rental units; and

3 6.affirmation by the short-term rental provider that operating the unit as a shortterm rental unit does not violate any applicable rules or by-laws of the relevant condominium, co-op, or homeowners association or other such entity. e) Fees and Renewal A short-term rental provider shall be assessed, and pay, a fee of $2500 for the initial registration of each short-term rental unit such short-term rental provider operates, and $250 each year to renew each such registration. Upon each registration renewal, a short-term rental provider shall ensure that all information in such registration is up to date. f) Inspection - Each short-term rental unit must be inspected once a year by the [Department of ]. g) Website & Complaints The [Department of ] shall maintain a webpage which lists the address of each short-term rental unit and the contact information for each short-term rental provider. The webpage shall also provide a mechanism for consumers to file confidential online complaints regarding any short-term rental provider and any short-term rental unit. h) Notice to Community The [Department of ] shall notify all residents within 300 feet of a short-term rental unit when such unit is initially registered pursuant to this section. Section 4 Zoning, Prohibitions & Restrictions a) Zoning A short-term rental unit is not permitted in any location or building not zoned for commercial use, unless an exception is granted by the [Department of ]. b) Multi-Unit A short-term rental provider shall not operate more than three short-term rental units in any multi-family building or operate such number of short-term rental units as would constitute more than ten percent of the total number units in a multi-family building. c) Affordable Housing A residential dwelling may not be used as a short-term rental unit if the owner or resident of the dwelling has received affordable housing funds, with respect to such dwelling, from the federal, state, or local government, unless the owner or resident is residing in the dwelling while renting out other bedrooms in such dwelling. d) Rent Control - A residential dwelling may not be used as a short-term rental unit if the dwelling is rent-controlled, unless the owner or resident is residing in the dwelling while renting out other bedrooms in such dwelling. e) Number of Renters No more than two 21 years old or older per bedroom are permitted to occupy a short-term rental unit at one time. f) Age No short-term rental provider shall rent a short-term rental unit to any person under the age of 21 years.

4 g) Primary Residence No residential dwelling may be used as a short-term rental unit unless it is the primary residence of the short-term rental provider. Section 5 - Taxes a) Occupancy and Sales Tax A short-term rental provider shall be subject to all state and municipal occupancy, sales, and other taxes, fees, and assessments to which an owner or operator of a hotel is subject in the jurisdiction in which the short-term rental unit is located. b) Collection and Remittance Occupancy and Sales Tax - A short-term rental listing services shall, on behalf of each short-term rental unit it lists through its services, collect and remit to the appropriate authorities all occupancy, sales and other taxes, fees, and assessments to which each such short-term rental unit is subject. c) Income Tax - A short-term rental listing service shall report, to the respective income taxing authorities of each short-term rental provider whose short-term rental unit such short-term rental listing service lists, all income received by such short-term rental provider for renting out the unit. Section 6 - Safety & Health a) Sanitary Condition - A short-term rental provider shall maintain the facility in a sanitary condition. b) Cleaning Unit Before Renting Again - A short-term rental provider may not rent a unit to a person succeeding a previous occupant before thoroughly cleaning the unit and providing clean and sanitary sheets, towels, and pillowcases. c) Inspection A short-term rental unit shall be inspected by the [Department of and the Fire Department] once a year. Such inspection(s) shall: 1. verify that the short-term rental provider has obtained all required certifications and permits for electrical, water and sewer, heating, ventilation and cooling systems; and 2. verify that the unit meets acceptable health and safety standards by confirming that: i. there are hard-wired smoke detectors near all bedrooms; ii. appliances are installed properly and in safe working order; and iii. the unit meets any other reasonable safety, emergency, and health standards. Section 7 - Insurance A short-term rental provider shall have at least $250,000 in property and casualty insurance to cover damage done by, or suffered by, any person renting the short-term rental unit from the short-term rental provider.

5 Section 8 - Accessibility Requirements A short-term rental provider who offers to rent out 5 or more bedrooms within one building, whether in one short-term rental unit or multiple short-term rental units, must comply with all accessibility requirements to which places of public accommodation are subject. Section 9 - Anti-Gouging A short-term rental provider shall post a card or sign in a conspicuous place in each unit stating: (1) the daily room rate; and (2) the date on which the card or sign was posted. Section 10 Penalties The [Department of ] may assess a penalty of $5000 per violation on a short-term rental provider who operates a short-term rental unit in violation of sections 3, 4, 5, 6, 7, 8, or 9. Upon repeated or egregious violations, the [Department of ] may suspend or revoke the license of the short-term rental provider to operate a short-term rental unit.

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