Title
Short-term Rental Ordinance. Discussion of issues and alternatives for regulating short-term rentals.
Body
CITY OF ALAMEDA
PLANNING BOARD
WORKSHOP
STAFF REPORT
ITEM NO: 5-A
PROJECT
DESCRIPTION: Short-term Rental Ordinance. Discussion of issues and alternatives for regulating short-term rentals.
GENERAL PLAN: Citywide
ZONING: Citywide
ENVIRONMENTAL
DETERMINATION: Exempt - A workshop discussion has no possibility of an effect on the physical environment.
PROJECT PLANNER: Steven Buckley, Planning Services Manager
Heather Coleman, Consultant
PUBLIC NOTICE: No notice is required for a workshop discussion; the agenda was posted at City Hall and on the City’s website. Notice will be given more broadly when warranted.
EXHIBITS: 1. Staff Report for 2/10/25 Planning Board meeting
2. Meeting Minutes, 2/10/25 Planning Board meeting
3. Other Jurisdictions’ Regulations
4. Sample Housing Safety Checklist
BACKGROUND
At the Planning Board meeting on February 10, 2025, staff introduced a plan to develop regulations for short-term rentals (STRs), i.e. the rental of rooms or entire homes for short periods, usually less than 30 days, also known as home sharing or vacation rentals. The staff report for that meeting (Exhibit A) describes the context and need for STR regulations, identifies key issues that the regulations need to address, and provides a preliminary project timeline.
Board members asked questions of staff, highlighted topics they would like more information on, and provided initial comments on key issues. Members of the public, including a number of local STR hosts, spoke at the meeting, describing the character and benefits of their STRs and advocating for being able to continue them.
The purpose of the current Planning Board workshop is to:
• Report back on staff’s additional research;
• Expand the discussion of main issues and decision points for the STR ordinance;
• Provide a set of initial staff recommendations and alternatives to consider; and
• Seek feedback from the Board on the recommendations and alternatives.
Staff requests that the Planning Board provide comments on this set of initial recommendations and alternatives. Staff will use the input from this workshop to develop draft regulations, which will then be presented to the Planning Board and City Council for consideration.
CONTEXT AND PURPOSE
The Board was previously presented with a staff report at its February 10, 2025 meeting (Exhibit 1), which describes the context for developing STR regulations, including:
• The policy context for developing STR regulations, namely that Alameda’s adopted 2023 - 2031 Housing Element recommends limiting short-term rentals to minimize the impact to the city’s housing supply.
• The prevalence and nature of STR regulations in nearby jurisdictions.
• Estimates of the number of STRs currently operating in Alameda.
• The existing regulatory context, particularly the lack of land use regulations for STRs in Alameda’s zoning ordinance.
• The presence of STR regulations in nearby cities may be driving increased demand for STRs in Alameda, where such regulations are currently lacking.
• Ensuring the City receives the appropriate transient occupancy tax (TOT).
It is worth restating and clarifying the purposes of adopting regulations for STRs. As the Board and staff review alternatives, develop the regulations, and incorporate public input, these principles can serve as reference points.
The primary purpose of the STR regulations is to prevent or minimize conversion of permanent long-term housing units to transient lodging in order to maintain Alameda’s housing stock. Other purposes of the STR ordinance include:
• Implement Policy H-19 of Alameda’s 2023 - 2031 Housing Element, which states, “Limit short-term rentals, conversions to hotels, which reduce the supply of long-term housing units for sale or rent.”
• Protect housing supply and affordability. Prevent the conversion of existing housing units to transient lodging uses and reduce speculative investment. Maintain Alameda’s housing stock for long-term rental and ownership, and reduce vacancy.
• Allow residents of Alameda (including property owners and long-term renters) the opportunity to rent their residences to guests on a short-term basis. This can provide income to Alameda residents, offsetting the price of owning or renting a home. It can also provide residents with flexibility for travel and remote or seasonal work, and can showcase Alameda to visitors who desire alternatives to hotel accommodations.
• Ensure neighborhood compatibility and minimize potential nuisance impacts on Alameda residents living near STRs and maintain the safety of residents and visitors.
• Provide clear regulations and procedures to enable straightforward compliance with planning, building, business, rent and tax regulations.
PENDING STATE LEGISLATION
The League of California Cities is sponsoring SB 346 which would allow cities to request each short-term rental facilitator to report the assessor parcel number of each short-term rental during the reporting period, as well as any additional information necessary to identify the property, including, but not limited to, the physical address of the host property, listing identification number, and property type. This would be an opt-in program and would provide cities with a more efficient process for collecting data to assess the impacts on the long term rental market as well as a mechanism for better collecting TOT.
ADDITIONAL RESEARCH SINCE PRIOR WORKSHOP
At its February 10th meeting, Board members asked for more information on a number of topics, which can be grouped into five general areas: impacts of STRs on the housing market, protections for affordable housing, STR market trends, nuisance impacts, and administration and enforcement of STR regulations. This staff report notes Board member inquiries and reports back on the topics on which staff has been able to gather information to date.
STRs and the Housing Market. Board members asked for information on:
• The relationship between STRs and housing supply and prices.
• The likelihood that existing STRs, if restricted or prohibited, would be converted into long-term rentals.
Staff has been able to gather, review, and summarize several articles on the effect of STRs on the housing market. While results of studies on STRs and the housing market have been mixed, some studies have found a drop in rent prices associated with STR regulations. For example, one study of 88 jurisdictions in Los Angeles County found that STR ordinances reduced the number of STR listings by 50% and rent prices dropped by 2% (Koster, van Ommeren & Volkhausen, 2021). A study of communities across British Columbia estimated that neighborhoods with a principal-residence restriction on STRs had rents that were 3.3% lower than they would have been without the principal-residence restriction. In Vancouver, BC, rents were 6.9% lower than they would have been without STR regulations (Wachsmuth & St. Hilaire, 2024). Although Alameda as a community and marketplace is unique from those places, these studies are illustrative of possible outcomes from adopting local regulations.
The studies consistently find a drop in the number of STR listings after adoption of STR ordinances. However, they find that not all units previously used as STRs return to the long-term rental market after regulations are adopted, as was stated by several of the attendees at the prior workshop who are current STR hosts. It’s worth noting that STR regulations can, however, help prevent future conversion of housing units to transient lodging uses.
Restrictions on Affordable Housing. Board members asked whether below-market-rate housing units are restricted from being used as STRs. The answer is that most agreements for deed-restricted affordable housing units do prohibit their use as STRs. Staff agrees that it is worth including a provision in the ordinance for clarity and emphasis.
Nuisance Impacts. Board members asked whether there is any data on police activity related to STRs. The Alameda Police Department does not have specific data on this topic, but there is limited anecdotal evidence of calls for service related to STRs. Rent Program staff indicated that they receive occasional complaints from tenants who believe neighboring units are being used as STRs and that there is an impact on their living environment.
Administration and Enforcement of STR Regulations. Board members asked:
• Could the City require hosts to get business licenses through the platforms?
• If the City had a business license requirement for STRs, what mechanism could be used to enforce the requirement?
• How do cities like San Francisco, which sets a maximum number of days per year for STRs, track and enforce these time limits?
• What are the trends in the transient occupancy tax (TOT) in recent years?
Regarding business licensing, the City currently requires a business license, but few hosts have obtained one. The annual fee for a typical property rental business is around $200. The TOT is paid by the guest, not the host (and remitted to the City by the host or platform). The City could also require that hosting platforms refrain from listing rentals that do not have a business license. In addition, the City could require platforms to list the business license number on their host profiles. This type of regulation has been implemented in other jurisdictions.
The City/County of San Francisco requires STR hosts to submit quarterly reports that detail the number of nights that they had STR guests, whether the stays were hosted or unhosted, the listing platforms they used, and their listing identification number.
STR Characteristics and Trends. Staff has not yet been able to identify sources of information on the following issues:
• Trends in the STR market between hosted vs. unhosted STRs.
• Whether unhosted STRs are more frequently managed by outside entities as opposed to residents of Alameda.
KEY ISSUES AND ALTERNATIVES
When crafting regulations for STRs, the City will need to consider key issues and determine which approaches will best fulfill its policy goals, reflect the purposes of the STR ordinance, and be most appropriate for Alameda. Decision points revolve around what types of buildings and spaces may be used as STRs, whether annual time limits should apply to STRs, what operational standards should apply to STRs, and what type of permit requirements and enforcement procedures to adopt, among others.
For each of these issues, this report includes an introduction and overview, an initial recommended approach, and alternative approaches to consider. Where relevant to the topic at hand, it describes how nearby cities approach the issue.
1. Primary Residence and Other Host Requirements
2. Hosted vs. Unhosted Rentals and Time Limits
3. Types of Buildings and Spaces
4. Tenant Protections and Affordable Housing
5. Operating and Performance Standards
6. Health and Safety Compliance
7. Type of Permit Required
8. Business Process for STR Registration
9. Monitoring and Enforcement
Issue 1: Primary Residence and Other Host Requirements
Many cities have adopted requirements that any dwelling unit rented as an STR be the host’s primary residence. In practical terms for STR operations, this implies that the host can either stay in the unit while guests stay there, or the host may be away while guests stay there for some portion of each year, but it must be the host’s usual home. Such measures are intended to discourage speculative investment in properties by nonresidents and prevent the full-time conversion of permanent housing stock to transient lodging. It is also meant to keep earnings in the community and discourage nonlocal or corporate management of and profit from STRs.
Some cities have adopted additional requirements regarding who can host an STR. A few nearby cities (e.g., San Leandro, San Francisco) require that hosts be natural persons rather than corporations. Others (e.g., Fremont) have regulations stating that no person may host more than one STR address within the jurisdiction.
Recommended Approach. Staff recommends requiring that any dwelling unit to be rented as an STR be the primary, permanent residence of the STR host or on the same property as a host’s primary residence. In order to operate an STR in Alameda, hosts would be required to present documents demonstrating that the STR address is their primary residence, such as a state ID or driver’s license, motor vehicle registration, voter registration, income tax return, or property tax bill. A person would not be able to claim more than one address as their primary residence.
Alternatives. Additional measures and alternatives include:
• In addition to requiring that STRs be the host’s primary, permanent residence, adopt requirements for hosts such as:
o Limiting each host to one STR address within Alameda.
o Requiring that hosts be natural persons rather than corporations.
• Allow short-term rental of units that are not the host’s primary residence.
Issue 2: Hosted vs. Unhosted Rentals and Time Limits
While the primary residence requirement would ensure that housing units are not completely converted into commercial lodging, the City may also wish to adopt a maximum number of days per year that STRs can be unhosted.
There are three basic varieties, or configurations, of STR hosting:
• Hosted STRs, in which the host stays in the dwelling unit while guests stay there. This often takes the form of renting out a room or set of rooms within a house or apartment.
• Semi-hosted STRs, in which the host lives in one unit on the property but rents out a different unit or habitable space as an STR. In this arrangement, the guest has a complete unit or space to themselves.
• Unhosted STRs, in which the host does not stay on the property during the guest’s stay and may not live at the site.
Most nearby cities allow hosted STRs but not semi-hosted or unhosted STRs. Where they do allow semi-hosted or unhosted STRs, they limit them to a certain number of days per year. See Exhibit 4, which summarizes nearby jurisdictions’ allowances for hosted and unhosted STRs and any annual time limits that apply to STRs.
While time limits can be difficult to monitor and enforce, setting a maximum for unhosted STRs would clearly state the City’s goal and intention, reinforce the primary residence requirement, and inform hosts of expectations. If the City chooses to contract with a third-party monitoring service for enforcement of the ordinance, these services could approximate the number of days per year that a location is rented as an STR and discover egregious violations.
Recommended Approach. Staff recommends allowing STRs with the following time limits:
• Unhosted STRs: Maximum 90 days per year
• Semi-hosted STRs: Maximum 90 days per year
• Hosted STRs: No limit on number of days per year.
Note that a traditional short term rental is limited to less than 31 days. If a transient occupies a unit for longer than 30 days, they are generally re-classified as a tenant and may benefit from various tenant protections under the City’s Rent Program. Also, TOT may only be collected for the first 30 days of a transient’s rental.
Alternatives. Alternatives include:
• Omit rules on hosted vs. unhosted STRs from the ordinance and simply rely on the primary residence requirement.
• Allow unhosted and semi-hosted STRs for a lesser or greater number of days per year, such as 60 days or 120 days.
• Allow semi-hosted STRs, in which the host stays in a separate unit from the guests but on the same property, for an unlimited time. For example, the host could live in one unit of a duplex, triplex, or multifamily dwelling and rent another unit as an STR or rent a separate basement or cottage space that is not a full dwelling unit. Note that per State law, STRs are not allowed in ADUs created after 2017, so the other unit would need to be a primary unit or have been developed pre-2017.
Issue 3: Types of Buildings and Spaces
Another important component of STR regulations is establishing the types of buildings and spaces that may be rented. The regulations will need to address whether entire houses, entire apartments, or individual rooms within houses and apartments can be used as STRs.
Some cities (e.g., Emeryville, Piedmont) allow only single-family dwellings, not apartments within multifamily dwellings, to be rented as STRs. In general though, tenants should be afforded the same opportunity to generate additional income as owners of homes or condominiums would be able to do. Although rental agreements may preclude subletting and commercial activity in a rental, some cities simply require written landlord permission.
Alameda already prohibits ADUs from being used as rentals for less than 30 days.
Some local ordinances also address whether RVs, boats, commercial spaces, and other nontraditional spaces may be rented as STRs. The City could consider allowing STRs only in habitable space, as defined in the Building Code. This could include houseboats.
Recommended Approach. Staff recommends the following:
• Allow rental of individual bedrooms within dwelling units, with the host staying in another room in the same dwelling unit.
• Allow rental of an entire dwelling unit, as long as the unit is the host’s primary residence. (See section above on primary residence requirement.)
• Allow STRs in single-family and small multi-unit buildings, such as duplexes, where the host lives in one unit.
• Prohibit short-term rental of ADUs that were constructed after 2017, consistent with California law.
• Restrict STRs to habitable space. Specifically:
o Do not allow short-term rental of spaces that are not considered habitable due to factors such as low ceiling height, or unconditioned space.
o Do not allow short-term rental of RVs, tents, yurts, tree houses, and other nonpermanent structures.
o Allow the rental of floating homes, but not of boats unless they are legal live-aboards.
o Do not allow rental of buildings that only have certificates of occupancy for commercial use.
Alternatives. Alternatives include:
• Allow rental of different rooms within a dwelling unit to different parties without a host staying there, i.e. a rooming house.
• Allow short-term rental of RVs, tents, yurts, tree houses, and other nonpermanent structures.
Issue 4: Tenant Protections and Affordable Housing
Preventing conversion of rental housing to transient lodging would in itself help to maintain long-term rental housing in Alameda. The STR ordinance may need to include additional measures to protect affordable housing, rent controlled units and tenants’ rights and prevent displacement. Many cities exclude any deed-restricted affordable housing from being used as STRs. Others exclude units where tenants have been evicted under the Ellis Act or for owner move-ins.
Recommended Approach. Staff recommends the following:
• Prohibit deed-restricted affordable housing from being used as STRs.
• Prohibit the use of units from which tenants have been evicted under the Ellis Act or for owner move-ins from being used as STRs.
Note that while agreements for affordable housing generally exclude their use as STRs, it is worth reiterating this in the ordinance.
Alternatives. The Board may also want to discuss whether certain rent controlled units (such as sites with more than one unit built before February 1, 1995) should be exempted as well.
Issue 5: Operating and Performance Standards
One of the purposes of adopting an STR ordinance is to minimize potential nuisance impacts on neighbors. The City will need to consider what type of operating standards to adopt to foster safety and minimize any negative impacts of STRs on nearby residents. Such standards could include occupancy limits, prohibitions on parties and special events, curfews on outdoor activities, health and safety standards, noise standards, parking standards, designating a contact person to respond to complaints, and good neighbor practices.
Recommended Approach. Include operating standards in the STR ordinance that foster safety and minimize potential nuisance impacts. Recommended standards include:
• Set a maximum number of guests per bedroom or unit.
• Prohibit special events like weddings, parties, or other large gatherings, in other words, events attended by people other than the STR guests.
• Reference the City’s existing noise ordinance and state that STRs shall operate in compliance with the noise ordinance.
• Require that a contact person be available to respond to complaints within a certain period of time or located within a certain distance of any STR. The contact person would be identified on the application for an STR permit. It could be the same as the host or an additional back-up person.
• Require safety features such as fire extinguishers and smoke/CO2 alarms.
Alternatives. In addition to or instead of the above standards, the ordinance could include:
• Establish curfews on outdoor activities.
• Adopt special noise regulations for STRs instead of simply referencing the existing noise ordinance.
• Advise/educate hosts on how to be good neighbors as part of the STR permit or zoning clearance application.
• Require that hosts have liability insurance. Some platforms already provide a level of insurance to their hosts.
• Set parking standards for STRs.
Staff does not recommend adopting special parking standards for STRs because Alameda’s zoning ordinance doesn’t have minimum parking requirements for other uses, so this would be inconsistent with the City’s parking requirements.
Issue 6: Health and Safety Compliance
Related to the topic of safety standards mentioned under operating standards, the City should determine how to ensure that STRs are operated within safe physical spaces that meet building safety requirements.
Recommended Approach. Staff recommends:
• Require STR hosts to self-certify that they will comply with all safety requirements. A good example of a safety checklist is the City of Berkeley's rental housing safety checklist (Exhibit 4).
Alternatives. Alternatives include:
• Inspect all STRs prior to issuing permits for STRs.
• Inspect a percentage of randomly selected registered STRs each year.
Issue 7: Type of Permit Required
Establishing a permit specifically for STRs to operate in Alameda would help the City keep track of STR locations, assess any impacts to neighborhood livability or the housing stock, and respond to complaints more efficiently. It would also make hosts aware of applicable rules and ensure that proper fees and taxes are paid.
Such a zoning clearance or permit issued by the Planning Division would be a prerequisite for obtaining a business license. The Planning Division will need to coordinate with the Finance Department for implementation. (See “Enforcement” topic for further discussion.) This could also be coordinated with the Rent Program and Housing staff to ensure compliance with other regulations.
Recommended Approach. Staff recommends:
• Ensure that all STR hosts obtain a business license, pay applicable registration fees, and maintain a TOT remittance account if required (if they rent to visitors separately from a platform). This is in keeping with existing regulations in the AMC, but greater compliance is needed.
• Require each STR host to obtain a zoning clearance, or similar over-the-counter permit, from the Planning Division prior to obtaining a business license. Provide hosts with a copy of the regulations governing STRs and require them to acknowledge that they have reviewed and agree to operate in accordance with the regulations.
• Require hosting platforms not to list a STR unless the host provides evidence of a valid City business license and require that the business license number be displayed on the host’s rental profile, for the purpose of monitoring and enforcement.
Alternatives. Alternatives include:
• Establish a new type of minor permit for short-term rentals. This would be a minor planning permit that staff take in and review, not an over-the-counter permit.
Issue 8: Business Process for STR Registration
Pursuant to Section 5-2 of the AMC, anyone operating a business in Alameda is required to obtain a business license. However, currently, only a few hosts have obtained a business license for operating an STR. (Some might be getting a business license under another category such as home office, property management, etc.)
Under Alameda’s tax code, the hosting platforms are responsible for remitting TOT.
Currently, the hosting platforms submit bulk TOT remittances that cover all STR sites within Alameda. The platforms do not submit information on where in Alameda the STRs are located. This makes it difficult to confirm that TOT is being fully remitted. Establishing a permit for STRs and enforcing the business license requirement will provide the City with more information about STR locations.
The Alameda Rent Ordinance requires the registration of all long-term rental units, including all multi-unit properties, as well as any single-unit properties rented for 30 days or more. Owners of units that are used primarily for STRs are eligible to apply for an exemption from an annual program fee by submitting documentation. Some units currently registered as “vacant” may actually be used primarily or exclusively as STRs.
Recommended Approach. Staff recommends registering STRs and closing loopholes for unregistered STRs. This can include:
• Coordinate with the Finance Department to ensure a zoning clearance is obtained prior to issuance of a business license for an STR.
• Coordinate with the Rent Program to ensure that property owners are not improperly registering their properties as “vacant” if they are actually being used as STRs.
Alternatives. Staff has not identified alternatives to the recommended approach.
Issue 9: Monitoring and Enforcement
It will be important to determine how the City will enforce the STR regulations. Enforcement strategies fall on a spectrum from voluntary compliance to consistent, proactive enforcement. For example:
• Voluntary compliance could include self-certification and acknowledgement of rules by STR operators.
• As-needed enforcement could include responding to citizen complaints about specific STRs that are creating problems.
• Proactive enforcement could include tracking online STR listings to identify unregistered STRs or those that are violating the STR regulations (e.g., renting entire homes/units year round, renting ADUs, renting nonpermanent structures), sending notices to violating parties, and following up to see that violations are corrected. Proactive enforcement could be conducted by City staff and/or third-party monitoring firms that have special software and expertise in this area.
Higher levels of enforcement come with added costs and may require the creation of additional administrative processes and oversight, potentially adding a layer of bureaucracy to manage the program effectively. The City could use different enforcement strategies in combination. In considering different strategies, the City will need to balance the benefits of enforcement with the financial costs and personnel resources required. The Planning Division will continue to discuss enforcement strategies with affected departments and agencies, including the Finance Department, Rent Program, and Code Enforcement.
Recommended Approach. Staff recommends using a range of enforcement tools, including both voluntary and proactive enforcement:
• Voluntary compliance tools, including self-certification and acknowledgement of rules by STR operators when they apply for a zoning clearance or STR permit.
• As-needed enforcement, including responding to and resolving citizen complaints about specific STRs, including:
o Use existing platforms such as 311/SeeClickFix to register complaints.
o Send Code Enforcement staff to respond to citizen complaints. Following up to see that violations are corrected.
o Rely on the Police Department to respond to 911 and police nonemergency calls.
• Proactive enforcement, including contracting with a third-party monitoring firm to track STRs listings to identify unregistered STRs or those violating the regulations. Additional funding and staffing would be required.
Alternatives. Alternatives include:
• Rely on voluntary compliance by STR hosts, as well as complaint-based enforcement of individual problem cases. Do not proactively monitor STR listings.
• Monitor STR listings but have City staff, instead of a third-party, do the monitoring.
• Set up a special hotline for STR complaints.
Next Steps
Staff will use the Board’s feedback on key issues and alternatives described in this report in order to develop a draft set of STR regulations. Staff will also continue to gather information on requested research topics and discuss implementation and enforcement strategies with affected agencies. Staff expects to bring a draft ordinance to the Planning Board in the summer and to the City Council in the fall.
RECOMMENDATION
Conduct a public workshop discussion and offer comments on key issues and alternatives to inform staff’s development of draft STR regulations.