Emily Harris-Shears, housing policy specialist in the Community Planning, Development and Innovation department provided an update on the next steps and recommendations regarding Tourist Homes and Short-Term Rentals (STR). She recapped the data provided earlier in the year including current STR registration fees, the STR growth, unit characteristics and use estimates. She presented the tourist homes licensing and registration fee increase recommendation and the rationale behind the increase. Ms. Harris-Shears highlighted the community outreach initiatives regarding STR’s and the feedback received from these interactions. For more information, please see the attached video.
Ms. Harris-Shears discussed the following with the committee:
- Clarification on the current and proposed fee structure.
- Whether the fee increase would decrease compliance in registering STR’s.
- The make-up of community members during the outreach sessions.
- Lack of information available regarding the number of STR’s operated by out-of-state investors versus local operators and the potential impact of the fee increase on individuals that depend on STR’s as an income source.
- The composition of community members at the outreach events including STR operators and concerned community members.
- The breakdown of the proposed fee structure and services, the separate Health Department fee, whether the proposed fee increase is on par with peer communities, the industry recommendations on pricing, the potential for incremental fee increases over time and who the registration applies to.
- The measured approach to community STR registration outreach and how that approach would look including registration education and expectations.
- The average nightly rate charged for short term rentals, the multiplier used to determine the proposed fee, ways to encourage registration compliance, the present system does not include penalties currently.
- Staff time currently dedicated to STR’s and staff time that would support the proposed new process of active monitoring and registration guidance.
- Clarifying the registration requirement including whole home rental and state law definitions.
Committee member Becerra made the recommended motion.
Public Comment:
Erin Smith, short-term and long-term rental operator, gave experiences regarding operating a STR. She expressed concerns with the fee increase and staffing plan. She provided suggestions including an incremental increase and merit-based fees.
Janna Moser, short-term and long-term rental operator, commented on the report data regarding STR’s impact on the housing stock. She remarked on the differences between long term and short-term rentals, the taxes imposed on STR’s, questioned the benefits of the proposed fee and the communication of the registration requirement.
Jim Nugent, City of Missoula Attorney, noted the penalty provisions outlined in the Missoula Code book and provided observations regarding the structure of licensing.
Kevin Hunt, of the Rattlesnake area, commented on the fee goals, STR’s breakeven point, STR’s impact on the housing in Missoula, and gave views on the use of funds from the fees.
A committee member reiterated the motion and recommended holding the item in committee for further discussion.
Chairperson West kept the motion in committee for further discussion. There was no objection.