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Pasadena Home-Sharing No Longer ‘Gray Area’
News Oct 05, 2017
Founded in 1998, Au79 Teahouse is owned by the Lee family, who has been involved in the East Asian tea industry for generations. - Courtesy photo||Au79 has three locations: Au79 Teahouse in Arcadia (shown here), Au79 Tea Express in Pasadena and Au79 Tea Spirit in San Gabriel. - Photo by Emily G. Peters
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“I don’t think all the renters are grandmas and cancer patients … but I don’t think the character of these renters is something that should terrify us,” said Mayor Terry Tornek. – Photo by Terry Miller / Beacon Media News
City council approves short-term rental regulations by vote of 5-1
By Gus Herrera
At their most recent regular meeting, the Pasadena City Council approved zoning code amendments that will regulate short-term rentals (STR).
By a vote of 5-1 (Council Member Gene Masuda in opposition; Council Member Steve Madison recused), the city’s legislative body effectively lifted STRs and their hosts out of the proverbial “gray area” and laid down a pathway to legal home-sharing.
Pasadena residents who earn a little cash on the side by renting out their homes can now rest assured, so long as they fall in compliance with the city’s forthcoming regulations and obtain a special permit.
According to staff’s report, the city will now allow home-sharing as an accessory use for residences, town homes, multi-family units, and accessory dwelling units (legally-permitted or constructed before Jan. 1, 2017).
In addition to renewing their home-sharing permit annually, hosts must also obtain a city business license, self-certify the safety/legality of the unit, and remit transient occupancy tax (TOT) to the city.
Occupancy will be limited to two guests per bedroom, plus two additional guests. The property cannot be used for commercial parties or events, parking must be provided on-site, and renters must adhere to all city ordinances (especially pertaining to noise and litter).
The STR regulations will utilize a three-strike policy, to be enforced by the city’s code compliance department. Listing a property without a permit will result in a strike, as will any documented incidents by the police or fire departments. The city will also be capable of immediately suspending or revoking permits under “egregious” circumstances, a clause strongly supported by Council Member Victor Gordo.
According to city staff’s presentation, home-sharing TOT can potentially produce between $600,000 and $700,000 in revenue annually.
Ulrik Binzer, founder/CEO of Host Compliance, revealed that the Pasadena home-sharing market has increased 13-fold over the past years – as of Sept. 2, there were 534 unique rental units listed in the city.
More than 30 individuals turned up for the comment portion of public hearing, which lasted until past 11 p.m. Speakers included members of various neighborhood associations, a representative from Airbnb, and a number of local hosts who vigorously defended their right to earn extra income and the character of renters.
Many self-proclaimed “superhosts” revealed that the majority of renters are visiting grandparents, scholars, locals repairing their homes, and even medical patients from Huntington Hospital – a stark contrast to the image of reckless party-goers portrayed by critics of home-sharing.
Council Member Gene Masuda vehemently opposed short-term rentals and argued the need to protect Pasadena’s neighborhoods. – Photo by Terry Miller / Beacon Media News
Some hosts even argued that renters contribute to the fabric of their neighborhoods, as well as the local economy – a notion which Council Member Masuda found difficult to believe, “speakers say STRs contribute to neighborhoods, I don’t believe that … right now, I’m just having a problem with this. For me, we need to protect the neighborhoods and we’re not doing that with this.”
But the District 4 representative was seemingly on an island, as five of his colleagues took a contradictory stance.
“I’ve got to say, I’ve not had one complaint at all … I think we should see how it goes. If we have a problem, we can deal with that problem,” said Council Member Margaret McAustin.
“The best way to help our neighborhoods is to take action,” said Council Member Andy Wilson, “by not doing anything, it’s going to continue to be the wild, wild west.”
Mayor Terry Tornek was similarly “persuaded” of the need to regulate STRs, arguing that the city would be sailing “contrary to the tides of history” by not taking a slice of the home-sharing pie.
“This has been pretty thoroughly vetted,” said the mayor, “I don’t think all the renters are grandmas and cancer patients … but I don’t think the character of these renters is something that should terrify us.”
City Attorney Michele Beal-Bagneris will now attempt to work out the kinks and will return to the council with an ordinance within the next couple of months.
“There’ll be more on this … ” concluded Tornek.
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