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Tag: Vacation Rentals

Governor suspends vacation rentals

ANNA MARIA ISLAND – Florida Gov. Ron DeSantis has suspended vacation rentals for two weeks.

“We’re going to suspend for two weeks any new vacation rentals in the State of Florida. The concern is people in some of these hot spots wanting to come here. Now’s not really the time to do that, so the vacation rentals will be suspended for two weeks. If you’re in one now, then finish and go home – but for any new rentals there’s going to be a suspension on that,” DeSantis said during Friday’s press conference.

These actions are set forth in Executive Order 20-87.

Governor suspends vacation rentals, mayor suspends rental reservations
Florida Governor Ron DeSantis issued a two-week suspension on new vacation rental stays. – www.flgov.com

“I hereby order all parties engaged in rental of vacation rental properties, as defined in Florida Statutes, to suspend vacation rental operations. Vacation rentals are prohibited from making new reservations or bookings and shall not accept new guests for check-in for the duration of this order,” according to the executive order.

The directive includes any house, condominium or dwelling unit that is also a transient public lodging establishment as defined under Florida Statutes.

The governor’s directive does not include hotels, motels, inns, resorts, non-transient public lodging establishments, time share projects or long-term rentals. The order does not include rental stays at which the guests are already occupying the rental unit or have previously booked a stay and are scheduled to check in no later than March 28.

The order does not apply to those performing military, emergency, governmental, health or infrastructure response, or travelers engaged in non-vacation commercial activities.

“DBPR shall revoke the vacation rental license of any party that violates this order or otherwise advertises vacation rental opportunities during the duration of this order; and DBPR shall alert the state authorities to evidence of violations or attempts to violate this order,” the executive order says.

“This executive order shall expire in 14 days unless extended by subsequent order,” the order concludes.

Restrictions in Anna Maria

On Tuesday, March 24, Anna Maria Dan Murphy issued an emergency order that temporarily prohibits new reservations for vacation rental stays of less than 30 days in Anna Maria. The order took effect at 4 p.m. on Wednesday, March 25.

Governor suspends vacation rentals, mayor suspends rental reservations
On Tuesday, Anna Maria Mayor Dan Murphy issued an emergency order suspending new vacation rental reservations. – File Photo | Joe Hendricks | Sun

“There shall be no new reservations for an arrival date of March 26 through June 30 of less than 30 days. Reservations with an arrival date on or subsequent to July 1 are excluded from this order,” Murphy’s order says.

“If a rental of 30 days or more during the period between March 25 and June 30 is cancelled before the end of the 30-day period, that vacation rental shall not be permitted to be made available for rental, or be rented, for the balance of that 30-day period,” the order says.

According to the order, it is now considered fraudulent and unlawful to advertise a short-term vacation rental unit in Anna Maria that does not state all restaurants on Anna Maria Island are limited to takeout service only and all bars are closed.

It is also considered fraudulent and unlawful to not include mention of the governor’s 14-day mandatory self-quarantine requirements that apply to visitors from specific states and cities.

“This order is deemed necessary to protect the health, safety and welfare of the citizens of the city of Anna Maria,” the order says.

The order notes violations shall incur punishments that include but are not limited to the suspension or revocation of the vacation rental unit’s annual registration; removal of tenants; criminal penalties levied against the vacation rental owners and the rental management companies and personnel that represent them.

“Every day of non-compliance will be punished by separate fines levied against both the vacation rental owner and the vacation rental management company in the amount of $500 per day of non-compliance,” the order says.

Murphy is required to review his emergency order at least once every seven days to determine whether it needs to remain in place or be lifted.

On Wednesday, Murphy sent city commissioners an email update on the decision he made.

“Our city is the only one in the county with this type of order. I was on a conference call this afternoon with all cities and county officials in Manatee County. I was asked to explain our rationale/position for this order. I explained that part of our rationale was based upon reducing the churn of people coming into and out of Anna Maria weekly,” Murphy’s email said.

The mayor’s email expressed concerns about visitors being at a higher risk of infection while traveling; about potentially infected visitors using public facilities and visiting city beaches; and about potentially infected visitors being in close proximity to Anna Maria residents, many of whom are senior citizens.

“I acknowledge that there is pressure and displeasure with this order from some quarters. But I still feel this is in the very best interest of our community,” Murphy said in his email.

On Thursday, Murphy and the city commission held their first virtual commission meeting.

Joining the virtual meeting by telephone, several out of state residents expressed concerns about the emergency order impacting their existing reservations.

Pennsylvania resident Rose Jordan said she and several other family members have reservations on Anna Maria Island scheduled to begin on April 18. Jordan said she was not sure which of the three Island cities everyone in her party was scheduled to stay in.

“The order doesn’t apply to existing reservations. You have a legal right to come to the Island and stay,” Murphy said in response – not knowing what Gov. DeSantis would do the following day.

Murphy also cautioned that now is not a good time to travel and he noted the closures and restrictions placed on the Island’s bars and restaurants.

Jordan and others also expressed concerns about some vacation rental companies on the Island not providing refunds to those who wish to cancel their reservations due to the coronavirus pandemic.

Jordan said she was offered a credit that must be used during the 2020 calendar year. Jordan said due to their occupations she and several others in her party must bid out their vacation time well in advance and cannot make it to the Island at any other time in 2020.

New York resident Marco Dipasquale expressed similar concerns. He said he is an Airbnb host and that Airbnb and VRBO hosts, for the most part, are giving refunds for cancellations.

“This is not sitting well with us,” Dipasquale said, noting this might be the “last straw” for him when it comes to dealing with some of the Island’s vacation rental companies.

Holmes Beach logo OLD

Commissioners consider exemption for rental homes

HOLMES BEACH – Vacation rental owners may soon have one less piece of paperwork to worry about filing in one Island city.

During a May 30 work session, commissioners began discussing whether or not to do away with the requirement that vacation rental owners apply for and receive a business tax receipt for every unit they own in the city. City Attorney Patricia Petruff said that for the small amount of income the city receives from the BTR applications from rental owners, $31.90 per unit annually, processing the high number of applications has become a burden for city staff. She said that Mayor Judy Titsworth had requested the commission discussion on the issue.

“It was a nightmare,” Titsworth said to commissioners of the processing of large amounts of BTRs. “Why continue this nightmare of trying to keep track of it all when there’s no benefit?” She added that it costs the city more in staff time to process the applications than is earned through the BTRs.

In a breakdown of the costs to process the BTRs for 506 individually owned vacation and annual rental units provided by the city clerk, with no complications it costs $41.45 in staff time to process a single BTR, which costs $31.90 for the applicant, resulting in a loss of $9.55 per BTR. The total loss to the city is $4,833.90 annually according to the supplied calculations. In total, it’s estimated the BTRs for vacation and annual rentals represent somewhere around $60,000 for the city.

Rather than charge rental owners through the BTR, Titsworth suggested commissioners consider an increase in the vacation rental certificate required for all short-term rental properties renting for less than 30 days to make up the difference in finances.

VRCs are required to be renewed every two years and currently cost $150 for the initial application and renewal. During their June 11 work session, commissioners are expected to consider an amendment to the VRC to raise the cost of initial application and renewal to $600 per vacation rental unit.

If the BTR requirement was removed from rental units, Petruff said the longer term, 30-day rentals would basically have no oversight by the city as they are not required to apply for a VRC. She said code enforcement officers would have to try to catch violators of the minimum rental period or occupancy requirements through advertising. Police Chief Bill Tokajer said that the financial impact to the city from those units, a few hundred in number, could be easily recouped through the around 1,200 VRCs issued to short-term rentals.

Commissioners agreed to consider the issue but said they want to see more information about how the loss of revenue would affect the city and how it could be made up through the VRC program.

Related coverage

Vacation rental changes on hold for now

Holmes Beach vrc presentation chief

Vacation rental changes on hold for now

HOLMES BEACH – It’s been a long, sometimes rough road for the city’s vacation rental certificate program and the code enforcement officers who oversee it since the program’s inception two years ago. Now with the first round of certificate renewals occurring, commissioners are re-evaluating the program.

On second reading, an amendment to the VRC program failed due to a list of questions and concerns voiced by Commissioner Jim Kihm that caused his fellow commissioners to agree to take the amendment back to a work session rather than vote to approve the suggested changes. The amendment will now be studied by commissioners in a work session before returning to regular meetings for two public hearings and votes before any changes can be enacted.

The decision came the same day that Holmes Beach Police Chief Bill Tokajer hosted a stakeholder public forum for short-term rental owners and agents to come to learn about the proposed changes to the program and ask any questions. Now those changes may or may not materialize.

The primary reason for enacting the changes to the program was to give code enforcement officers the ability to immediately fine property owners for some violations of the certificate program including misleading advertising, renting for higher occupancy than allowed or for fewer days than permitted, and for not including the unit’s VRC number on advertising. With the program in its second year, Tokajer said the ticketing changes would help to reinforce the city’s stance on violating the program.

vrc delay lynn tran
Rental property owner Lynn Tran appeared before commissioners Nov. 13 during public comment to explain why the additional advertising requirements proposed in an update to the city’s vacation rental certificate program could be problematic for short-term rental owners and agents. – Kristin Swain | Sun

Rental owner Lynn Tran spoke to commissioners during public comment about the proposed changes to the program and how requiring property owners and agents to add more information to advertisements could become a hardship due to increased cost. She suggested finding a compromise between what the city wants and what’s considered reasonable for owners.

Though the changes to the VRC are going back to a work session for further review and discussion, commissioners did vote unanimously in favor of approving a contract with Host Compliance LLC in San Francisco for $30,600 to monitor rental advertisements for Holmes Beach properties online and alert police when a potential violation of the rental certificate program is noted. Sample violations include the advertised length of stay or occupancy and the lack of a VRC or business tax receipt number in the advertisement.

Once alerted of a potential violation, Tokajer said police would do their own investigation to determine if the property owner or agent is in violation of the VRC program and issue a citation, if necessary.

Chip Case

Vacation rental bills in peril

TALLAHASSEE – Behind the scenes maneuvering by lobbyist Chip Case, Anna Maria City Attorney Becky Vose and her son, attorney Wade Vose, may have helped derail two vacation rentals bills being debated by state legislators.

Defeating either bill would preserve local governments’ ability to regulate vacation rentals.

During the House of Representatives’ Thursday, Feb. 22, Government Accountability Committee meeting, Rep. Jay Fant (R-Jacksonville) introduced a sexual predator/offender amendment to Rep. Mike La Rosa’s (R-St. Cloud) vacation rental bill, HB 773. With La Rosa’s support, the committee adopted the amendment with no objection.

According to Anna Maria Mayor Dan Murphy, the amendment was drafted by the Voses, tweaked by Case’s staff and introduced by Fant, who utilizes Case as a political consultant.

The amendment proposes that sex offenders or sexual predators be required to register with the local county sheriff’s office 48 hours prior to arrival at a vacation rental and the rental owner/operator would have to notify all property owners within 1,000 feet 24 hours before the guest’s arrival. Violating owner/operators would be subject to fines or the suspension or loss of their vacation rental license.

The amendment proposes that all online advertisements and rental postings prominently display the rental unit’s complete street address and include a link to the Florida Department of Law Enforcement’s sexual predator and offender website. Fant said the amendment would apply only to vacation rentals, and not to hotels or other public lodgings.

“If this is what we need to do to protect children and make people feel comfortable, we absolutely need to do it,” La Rosa said.

During Thursday’s Anna Maria Commission meeting, Murphy discussed the amended House bill and its potential impact on both the House and Senate bills.

“It doesn’t match the Senate bill (CS/SB 1400), and it’s a very onerous thing for the vacation rentals to have to go through this notification process. The Senate will probably not take that bill up because of that amendment, so we maybe have dodged a bullet,” Murphy said.

With Becky Vose present, Murphy thanked the trio for their “work, diligence and creativity.”

Additional amendment

The House committee adopted a second amendment proposed by David Santiago (R-Deltona) that would apply to all public lodging establishments, including hotels. This amendment pertains to sexual predators only. According to Florida law, a sexual predator has been convicted of a first-degree felony sex crime or two second-degree felony sex crimes. A sexual offender has been convicted of a sex offense involving a minor.

The amendment proposes that public lodging operators must ask at check-in if any guest is a sexual predator. If so, the operator shall immediately inform all the lodging’s other guests.

Rep. Cary Pigman (R-Sebring) asked if this would create a circumstance where he, his wife and his teenaged children are asked if they’re sexual predators when checking into a Disney hotel.

“While I laud your efforts, I get bogged down in how we’d execute this without making Florida the weirdest state in the world to get a hotel room,” Pigman said.

“This would make things a little bit weird, but it would make it safe,” La Rosa said before the Santiago amendment was adopted with no objection.

By a 13-11 vote, the committee reported favorably on the amended House bill and forwarded it to the Commerce Committee chaired by Jim Boyd (R-Bradenton). The amended bill was not listed on the committee’s Monday, Feb. 26 meeting notice.

Homestead amendment

The House committee rejected by an 8-14 vote an amendment proposing that local governments continue regulating vacation rental properties not homesteaded as primary residences. La Rosa opposed the amendment, but said he heard good points made during that discussion. He acknowledged his bill needed more work and withdrew the strike-all amendment that would have matched his bill to the Senate bill – except for the sexual predator/offender amendments. La Rosa’s bill still differs significantly from the Senate bill’s attempt to give all vacation rental regulation to the state.

As of Monday, the Senate rental bill was not on the meeting notice for the Appropriations Committee’s Feb. 27 meeting. The legislative session is scheduled to end on March 9, but could be extended.

Island Real Estate sale

Island Real Estate sells vacation rental operation

HOLMES BEACH – Island Real Estate owner Larry Chatt has sold the vacation rental portion of his Island Real Estate business operation to Vacasa, an Oregon-based vacation rental management company.

“Vacasa will take over operations of Island Real Estate’s vacation rentals, adding nearly 300 Florida properties to the company’s growing portfolio. All real estate sales and property and condominium management will continue to be overseen by Island Real Estate. Vacasa plans to retain Island Real Estate’s current staff,” according to a Nov. 20 press release.

“I’ve owned and operated Island Real Estate for almost a decade and each year I drive the organization to adapt and improve to the fast-changing vacation rental industry,” Chatt said in the press release. “Vacasa continues my crusade to lead advancements in the southwest Florida market that provides unmatched value to our vacation rental business, increased revenue for homeowners, world-class service for guests and industry-leading benefits for employees,” he added.

When contacted, Chatt said he will lease his blue, multi-story building in Holmes Beach to Vacasa, which will retain the use of the building as a headquarters for laundry and housekeeping operations.

“We’re thrilled to be entering into this partnership with Island Real Estate and look forward to being part of the community in Anna Maria Island,” said Gerard Lester, director of Homeowner Experience at Vacasa.

Vacasa is a full-service vacation rental property management company that utilizes algorithm-based analytics to help determine rental rates and optimize revenue for its clients.

When contacted by email last week, Lester provided additional comments on the purchase.

“Larry saw an opportunity to bring in an operational and marketing expert to help manage the vacation rental side of his business. Larry has been working closely with Vacasa’s partnership and acquisitions team and will continue to be a resource to us as we transition all of Island Real Estate’s vacation rental business operations over to Vacasa,” Lester’s email said.

Lester also provided additional insight on Vacasa’s use of analytics.

“For a long time, the vacation rental industry lacked dynamic pricing, leaving money on the table for homeowners,” Lester said of the rental rate optimization algorithm Vacasa began utilizing in 2009.

“In April, we launched Yield Management 2.0, a machine learning-driven algorithm that optimizes rental rates throughout the day by automatically adapting to a variety of factors. Yield Management 2.0 is constantly evaluating and making real-time changes to rental rates based on millions of data points such as weather forecasts, location-specific events, holidays, occupancy, competitor prices, etc. Vacasa’s technology not only benefits the homeowner by revenue optimization, but also ensures guests are getting the best rates,” Lester said.

Vacasa currently manages more than 900 vacation properties throughout the state of Florida, including homes in Sarasota and Bradenton. Founded in 2009 and based in Portland, Vacasa and its subsidiaries manage more than 7,000 vacation homes in the U.S., Europe, South Africa and Central and South America.

City proposes state vacation rental law

ANNA MARIA – The city is going on the offensive in fighting for the protection of Florida cities’ home rule rights when it comes to regulating short-term vacation rentals.

City Attorney Becky Vose has drafted a bill that city officials hope will be introduced by supportive state legislators during the 2018 legislative session next spring.

“Becky has prepared a piece of proposed legislation that says municipalities and counties have the right to regulate vacation rentals as though they are a commercial enterprise,” Murphy told the commission on Thursday, July 13.

“Basically, what it says is cities and counties can pass ordinances designating vacation rentals as a commercial use and regulate them accordingly,” Vose added.

vacation rental
Large vacation rentals could be regulated as businesses, not residences. – Cindy Lane | Sun

Despite their commercial natures, the state currently considers vacation rental homes to be residential uses and state law limits how they can be regulated locally.

“We’ve had these discussions about vacations rentals being commercial enterprises for several years, so I don’t think there’s any mystique here,” Murphy said.

The mayor sought commission consensus to move forward with the efforts to get the proposed legislation introduced next year. This action is in response to two vacation rental bills that earlier this year unsuccessfully attempted to curtail local governments’ ability to regulate short-term vacation rentals.

“I will contact our lobbyist (Chip Case) and he will work with Flagler County, Dade County, Pinellas County and even in Orlando to get this out as our getting on the offense. If we sit here and wait, we’ll be playing defense again next year,” Murphy told the commission.

The city and its allies will need at least one member of the Florida House and one member of the Florida Senate to file the proposed legislation on their behalf.

Murphy said the Florida League of Cities (FLC) will host its annual conference soon, and he expects there to be a big push by members to protect home rule rights that pertain to local legislation and regulation in general.

Commissioner Carol Carter said FLC representative Amber Hughes attended the ManaSota League of Cities meeting earlier that day in Longboat Key and home rule rights were discussed.

“The plan is to make home rule the super priority in this 2018 legislative session. It sounds like it fits well with what we hope to do in taking the lead,” Carter said of the strategies to be discussed at the FLC conference in Orlando on Aug. 17, 18 and 19.

Commissioner Dale Woodland said he supports the city’s proposed legislation “100 percent,” and commissioners Nancy Yetter, Brian Seymour and Doug Copeland made that support unanimous.

“I’ll get with Chip tomorrow and we’ll get cranking on it,” Murphy told the commission.

Holmes Beach logo OLD

Holmes Beach officials issue occupancy violations

HOLMES BEACH – Police and code enforcement officers are cracking down on vacation rental occupancy violators.

As of July 5, Holmes Beach Police Chief Bill Tokajer said seven notices of violation have been issued to property owners advertising for more than the legally allowable occupancy limits or for improper length of stay. Per the vacation rental ordinance, Holmes Beach allows two people per bedroom or six total per unit, whichever is greater.

Short-term rentals are allowed to rent for seven days or more. Rentals in other residential districts are allowed for 30 days or more.

Tokajer said the department sent letters to property owners advising them of the city’s intent to enforce occupancy and the requirement to post vacation rental certificate numbers on all advertising.

Though a notice of violation does not carry a fine, recipients are given a 72-hour grace period to correct the issue before it escalates to a special magistrate hearing where a fine would be imposed.

To identify violators, Tokajer said officers are combing through rentals advertisements and comparing them with building permits, business tax receipts and vacation rental certificates.

“All we’re looking for is people to come into compliance with the ordinance,” he said.

Rental-inspired LDC amendments proposed

BRADENTON BEACH – The Bradenton Beach Planning and Zoning Board has completed the second phase of its efforts to regulate vacation rentals.

After previously crafting recommended vacation rental regulations aimed at addressing occupant behavior, the volunteer board embarked on a secondary effort that involves amending the city’s land development code (LDC) as a means of potentially limiting home sizes, lot sizes and the size and number of bedrooms allowed.

The proposed LDC amendments are directed primarily at the future construction of vacation rental homes, but if adopted by the city commission, they would apply to all properties in the R-1 and R-2 residential zones.

In the absence of chair John Burns, vice-chair Jim Lynch guided the board through a review of previously-discussed items and final consensus was reached on the recommendations to be forwarded to the city commission for consideration and potential adoption.

Many of the proposed amendments are the result of the combined efforts of board member Reed Mapes (a retired contractor) and City Planner Alan Garrett, with additional insight provided by the other board members during the many meetings that preceded last week’s meeting.

New recommendations

As of last week, the board is recommending that newly created lots be limited to 5,000 square feet.

The board is also recommending a maximum of 2,000 square feet of habitable living space in accordance with a 40 percent floor area ratio (FAR) derived from a maximum lot size of 5,000 square feet.

The board recommends the habitable space be limited to 2,000 square feet even if a lot is larger than 5,000 square feet. This stems from the discussed desire to prevent larger vacation rentals from being built on larger lots or combined lots.

After the meeting, it was suggested to Garrett that a 2,000 square foot limit on lots larger than 5,000 square feet would likely encounter pushback from some of the many property owners who plan to one day redevelop their larger lots. Garrett acknowledged this was a likely scenario.

During previous discussions, the board expressed initial, non-unanimous support for limiting a structure’s second living level to 40 percent of the lower living level, but subsequent debate created uncertainty as to the effectiveness and fairness of such a requirement and it was not included in the recommendations approved last week.

As part of its efforts to decrease occupancy, the board recommends a bedroom area ratio (BAR) of 29 percent; which means 29 percent (580 square feet) of the 2,000 square feet of habitable space could be used for bedrooms. Working in unison with a recommended minimum bedroom size of 120 square feet, this would allow for no more than four bedrooms in a single-family home.

If supported by the commission, the proposed LDC amendments would also apply to duplexes built in the R-2 district; and they would be applied proportionately to new structures built on smaller lots.

With the support of City Engineer Lynn Burnett, the board recommends that all structures requiring a building permit provide for the storage of the first two inches of rain that falls on the entire property, as designated by a certified site plan designed by a certified stormwater engineer.

The planning board recommendations will be discussed at a future commission workshop.

Letter to the Editor

Rental and homeowner rights

Dear Senator Steube:

I am a full time resident of Holmes Beach, a third generation native and owner of the #1 Re/Max franchise in the state of Florida. I state all of that to you in hopes of you understanding that I am not some new NIMBY that wants to stop all development, and I fully grasp and support the meaning of private property rights and have served the National Association of Realtors as a representative in Washington, D.C. The issues on the Island are in my mind a private property rights battle between homeowners and investors. I personally have five of these rentals immediately contiguous with my home and all have pools. The various parties and yelling that goes on is pretty difficult to put up with, especially the first Saturday night when it seems lots of alcohol is being consumed. I believe that I am entitled to the peaceful enjoyment of my own home and my six grandkids shouldn’t have to hear F bombs through the fences surrounding my home. Investors are taking a calculated risk for a chance at a profit, and, as we both know, municipalities can and do change various requirements that can affect an investor and their potential profits. I have sold many properties on the Island, and I always cautioned my buyer/investor to beware that ordinances can always change. This is called risk versus reward, and it’s what investors do, but it is not what homeowners are doing when they buy a home. Allowing investors to slide under the cover of private property rights is a misuse of the term, and the founders of our Constitution clearly understood the rights of peacefully living in your home. I believe in home rule for local cities, and I do not think legislators should be telling residents how their towns should operate. I have been a real estate investor for over 40 years, and I always understood that rules can change, but I never expected the state government would become Big Brother in my life. I urge you to reconsider this position for the sake of homeowners everywhere in our area.

– Ron Travis  Broker/owner/partner  RE/MAX Alliance Group