Holmes Beach is working to create a level playing field for short- and long-term rentals and the owners of rental properties.
Some vacation units rent by the month.
City commissioners Sept. 24 approved the first reading of an ordinance taxing longer term vacation rentals — monthly and seasonal rentals.
Additionally, the commission unanimously approved the second and final reading of an amended weekly vacation rental ordinance.
Both ordinances stipulate a service fee of $545 for two years.
Previously, the city proposed a $695 fee for a term of two years for weekly rentals, while long-term rental owners paid no fee. A rental certificate program for monthly and seasonal rentals has not been established.
Mayor Judy Titsworth has said administering monthly rentals requires the same amount of work for city staff as weekly rentals, and she determined rentals should pay the same and directed city treasurer Lori Hill to calculate the cost of the service and the fee.
At a meeting Sept. 10, Commissioner Carol Soustek, who owns a long-term rental, said she is concerned the new fee could lead to fewer monthly rentals in the community and suggested the fee cover three years, instead of two years for long-term rentals.
At the Sept. 24 meeting, Police Chief Bill Tokajer said the code compliance department determined three years is too long between safety inspections.
The commission was split 3-2 on two-year renewals for long-term rentals. Soustek and Commissioner Rick Hurst dissented.
Hurst, who missed the Sept. 10 meeting, said he didn’t understand why long-term rental owners should be hit with the same fees as short-term owners, who generally have more impact on noise and trash problems.
But Commission Chair Jim Kihm said the government work required for inspections is the same for both lengths of stay at rental properties.
“Whether it’s weekly or monthly, it really doesn’t make a difference for code,” Kihm said.
Kihm said monthly rentals can become a public safety issue. He said people have offered their homes as commercial lodging, so the city must make sure their rentals meet safety regulations.
“We also have a responsibility to make sure that people are playing by the rules,” he said, adding the rental certification program ensures people do not illegally advertise rentals for shorter durations than allowed.
Soustek said, “You’re looking at a very small population that is an asset to this island. Trying to treat them like the same category as a short-term rental is comparing an apple to an orange.”
Kihm responded that the public safety concerns are the same.
Commissioner Pat Morton added, “You get 95% doing exactly what they are supposed to do. But then you have the other 5% that say, ‘I don’t have to worry about an inspection. So I don’t care if that window opens or not.’”
City attorney Patricia Petruff recommended that because Soustek owns rental property, she not vote on the ordinance.
A motion on the first reading of an ordinance to add long-term rentals to the vacation rental certificate program passed 3-1, with Hurst voting “nay,” and Soustek abstaining.
The next city commission meeting will be at 6 p.m. Tuesday, Oct. 8, at city hall, 5801 Marina Drive, with a work session to follow.
As a property owner seeking some income to pay for flood insurance and taxes, I really wish the ordinances limited the number of renters to one per month in the monthly rental zones. This would allow finding renters who wish to stay less than a month and limit to one rental per month. This would have home occupied by renters for shorter periods in the residential zones and help the owner find people who might want to rent the property in off summer season and holidays.