Taking a Deep Plunge: The Implications of Banning Short-Term Rentals

Can regulating short-term rentals save your neighborhood? Or might a strict ban be the only way to maintain housing affordability? Join us on this riveting episode as John and Jenny dissect the Burbank City Council's decisive move to ban STRs like Airbnbs. We promise you'll gain a deep understanding of the financial and regulatory challenges at play, from the potential revenue of transient occupancy taxes (TOT) to the intricacies of enforcement strategies. You'll learn why the council opted for a ban while weighing two enforcement paths: a rigorous, resource-intensive approach versus a more lenient, hands-off method.

We also unravel the broader impact of prioritizing long-term housing, especially with major city events on the horizon. How does this local decision resonate in a world increasingly grappling with housing affordability and global events? This episode underscores the importance of community engagement and staying informed about local issues. Whether you're an advocate for short-term rentals or a proponent of preserving housing for residents, this discussion offers invaluable insights. Tune in, stay informed, and be part of the conversation shaping the future of our neighborhoods.

Transcript

Speaker 1 0:02

From the media district adjacent. It's time to take another deep plunge into the issues and topics that face Burbank. Let's see what we have on the plate to dissect today.

Speaker 2 0:13

Hello Burbank. This is Greg Schubert here and we have an audio-only podcast to give you an overview from a recent City Council meeting dealing with short-term rentals, or STR for short, in Burbank. John and Jenny are here to talk about what the Burbank City Council heard at a recent meeting and what they gave staff the direction to do. Take it away, john and Jenny.

Speaker 3 0:36

Okay, so are you ready to dive into all this Burbank short-term rental stuff? We've got a lot to unpack here, like meeting minutes from the city council, their staff report, even a peek at what other California cities are doing about all this.

Speaker 4 0:51

What I think is really interesting is that Burbank is kind of late to this whole thing. You know, cities like LA and Anaheim have been dealing with short-term rental regulations for years now, so what Burbank decides to do now could be a really big deal.

Speaker 3 1:05

Yeah, it's like they're playing catch up right, and looking at these city council meeting minutes, things got a little heated. Councilmember Tahashi, for example, was asking some pretty pointed questions like how many people are actually renting out rooms on Airbnb right now and how much is the city missing out on in taxes because of it?

Speaker 4 1:20

Oh yeah, Councilmember Tahashi is definitely hitting on a major issue there. That's the financial side of it. The staff report lays out three main options for the city, and they each impact the budget differently. They could choose to permit and regulate STRs, which would mean they start collecting those transient occupancy taxes, or TOT.

Speaker 3 1:39

Okay, so TOT, that's basically like hotel taxes, but for Airbnbs and stuff, right.

Speaker 4 1:44

Exactly. It's how cities can get some revenue from this type of lodging. But the staff report also says that allowing STRs could mean higher rent prices for everyone else. Especially with the World Cup and Olympics coming up, it's a tough thing to figure out.

Speaker 3 1:57

Yeah, it really is. It's like deciding if you want a slice of the Airbnb pie now or try to keep housing affordable later, when millions of visitors come to Southern California.

Speaker 4 2:06

And that's just one piece of the puzzle. The second option they talked about is a complete ban on STRs.

Speaker 3 2:11

Whoa, really the nuclear option. No more Airbnbs in Burbank at all.

Speaker 4 2:16

That's the idea. The hope is to preserve neighborhoods for residents and to keep STRs from taking away from the long-term rental market, which is already pretty limited.

Speaker 3 2:25

That makes sense, but wouldn't the city then have to spend more money to enforce that ban? Are they going to have, like an Airbnb police force patrolling the streets?

Speaker 4 2:32

Uh-huh, that's the million-dollar question, and the staff report does say that enforcement could get expensive. They'd need software to track down online listings and staff to investigate complaints. It's definitely not as easy as just saying no more SDRs.

Speaker 3 2:47

It seems like every solution creates a whole new set of problems.

Speaker 4 2:50

Yeah, and that's why this decision is so complicated. The third option is basically to do nothing and to maintain the status quo.

Speaker 3 2:56

So just keep calm and Airbnb on.

Speaker 4 2:59

Well, not exactly See. Right now, Burbank is in kind of a gray area. They're not permitting SDRs, but they're also not enforcing a ban either. The staff report called it prohibition by omission.

Speaker 3 3:10

Which just sounds like a recipe for confusion and conflict later on. If no one knows the rules, how are they supposed to follow them?

Speaker 4 3:17

And that's the gamble with doing nothing, the city loses out on potential TOT revenue. Residents don't know what's going on and the issues are still there.

Speaker 3 3:26

It's like sweeping dust under the rug it might look clean for a minute, but eventually someone's going to sneeze and blow the whole thing white open.

Speaker 4 3:32

Exactly, and if you look at the meeting minutes, it seems like Council Member Dehashi, at least, is ready to stop sweeping this under the rug.

Speaker 3 3:38

So, knowing all of that, what did the city council decide to do? Did they choose to permit and regulate, or did they go with ban all STRs, or did they pick, cross our fingers and hope for the best?

Speaker 4 3:50

Well, they voted and their decision might surprise you.

Speaker 3 3:53

Oof cliffhanger. Don't leave us hanging. What was the verdict?

Speaker 4 3:56

They decided to ban STRs.

Speaker 3 3:58

Wow, really, they actually went for the ban. Huh, I guess that shows how serious they are about keeping those neighborhoods the way they are and making sure people can still afford. So I guess that's it then. No more Airbnbs in Burbank.

Speaker 4 4:12

Well, hold on a second, because it's not quite that simple. You see, even with a ban, there's still a few ways to go about it.

Speaker 3 4:19

Oh, that's right. It's not like they can just flip a switch and all the Airbnbs disappear. They have to figure out how to actually make it work.

Speaker 4 4:26

Exactly, and this is where the city council's decision gets really interesting. What they did was they gave the staff two options to look into.

Speaker 3 4:34

Okay, so let's break those down. What were the two options for the ban?

Speaker 4 4:37

The first one let's call it approach A was to really go all out on enforcing it. I'm talking dedicated staff software. They can find those listings Basically. If someone's running an illegal STR, they'd find them.

Speaker 3 4:49

Sounds intense. They're not messing around.

Speaker 4 4:51

Nope, it sends a strong message and, of course, it comes with a cost. Remember we talked about those budget concerns. Going after those STRs takes time and people and, yeah, money.

Speaker 3 5:02

And I'm sure they're already stretched thin with the World Cup and Olympics right around the corner, exactly.

Speaker 4 5:07

So that brings us to approach B. This is the more hands-off option. The ban is in place, but the city isn't actively out there looking for people breaking the rules.

Speaker 3 5:16

So kind of like don't ask, don't tell, but for Airbnbs, what they don't know won't hurt them.

Speaker 4 5:21

Yeah, something like that. It means they'd be relying more on people who live there to report any violations.

Speaker 3 5:26

Interesting. So it's like a neighborhood watch type of thing. If you see something suspicious, you report it and the city will take it from there.

Speaker 4 5:33

That's the gist of it and honestly it's not that unusual. The staff report actually looked at how other cities with SDR bans handle things, and it's all over the place.

Speaker 3 5:43

Oh really. So some cities are super strict about it and others just let it slide.

Speaker 4 5:46

Pretty much. Some places have had success just by having the law, even if they don't go crazy enforcing it. I guess for some people the fear of getting caught is enough.

Speaker 3 5:54

The power of a good scare tactic.

Speaker 4 5:56

But I'd imagine.

Speaker 3 5:57

That only works if people actually think they'll get caught.

Speaker 4 5:59

Which is the million dollar question right? Will a ban without any real enforcement behind it actually stop STRs in Burbank, or will it just push everything underground? It's a risk for sure.

Speaker 3 6:12

A big risk. I mean, we've talked about the money the city could lose and the impact on people trying to find a place to live long term, but what about the people who actually live in Burbank? What do they think about all of this?

Speaker 4 6:26

That's a good question, and the meeting minutes don't really give us all the details, but there are some hints about what people are worried about.

Speaker 3 6:34

Like what Spill the tea.

Speaker 4 6:35

Well, some residents are saying that even with a ban without super strict enforcement, it could turn into a system where neighbors are turning on each other.

Speaker 3 6:43

Right, Because if the city's not out there looking for violators, it basically means it's up to the neighbors to report each other.

Speaker 4 6:49

right that's right and that can cause problems. You know, tension, distrust, especially in a place like Burbank where they're all about that small town feeling.

Speaker 3 6:57

It's the neighborhood watch gone wrong. Instead of being on the lookout for suspicious vans, they're looking for anyone with a suitcase.

Speaker 4 7:04

Uh-huh, Maybe a little dramatic but yeah you've got a point Could have some consequences they didn't think about.

Speaker 3 7:09

So, basically, even with a ban, there's no simple solution. It's always going to be a balancing act. So what did the city council decide to go with in the end? Did they choose the Airbnb police or the neighborly vigilance approach?

Speaker 4 7:21

Well, it kind of met in the middle. They told the staff to write up an ordinance that officially bans STRs, but they didn't actually give them the money or resources to really go after people breaking the rules.

Speaker 3 7:33

OK, so it's official then no more short term rentals in Burbank, at least on paper, but what does that really mean for the people who live there and the people who are thinking about renting?

Speaker 4 7:43

out their places on Airbnb. That's what we're going to unpack next. This ordinance is more than just a yes or no. It actually lays out the specific rules, and that's where things will get really interesting.

Speaker 3 7:53

Sounds like we're about to dive even deeper into this Burbank STR saga. Buckle up everyone. Okay. So Burbank is officially saying no to short-term rentals. At least that's what it says on paper, but we all know things aren't always so simple. What does this ordinance actually say, and how is it all supposed to work?

Speaker 4 8:13

Well, if anyone was looking for loopholes, they're going to be disappointed. This ordinance is super clear. Short-term rentals under 30 days yeah, totally banned in all residential zones, no exceptions.

Speaker 3 8:22

So much for those Airbnb dreams. Huh, I guess Burbank is off limits for anyone hoping to cash in on those World Cup crowds.

Speaker 4 8:28

Yeah, you could say that, but remember we talked about how the city isn't really out there hunting for people breaking the rules. It's more about setting the expectation and hoping people play by the rules.

Speaker 3 8:39

Which is a bit of a gamble, for sure, but it can't just be about hoping for the best right. There has to be something to make sure people don't just ignore the rules.

Speaker 4 8:47

Oh, absolutely.

Speaker 3 8:48

Yeah.

Speaker 4 8:48

The ordinance lays out some pretty hefty fines for anyone who ignores the ban. We're talking up to $10,000 for repeat offenders $10,000.

Speaker 3 8:57

Talk about an expensive Airbnb.

Community Engagement and Impact in Burbank

Speaker 4 8:59

Yeah, they're not messing around. It's a clear message that Burbank is serious about looking out for the people who live there and making sure they have a place to live long term, even if it means saying no to some extra cash from short-term rentals.

Speaker 3 9:11

And when you really think about it, with those huge sporting events on the horizon, it makes sense that Burbank wouldn't want even more competition for housing.

Speaker 4 9:20

Right, and it's really important to remember this isn't just about Burbank. These local decisions about things like short-term rentals are always part of a much bigger picture. They're connected to global events and the cost of living and all sorts of other things.

Speaker 3 9:33

It's like everything is connected One thing affects another.

Speaker 4 9:36

Exactly so. Even though we've been focusing on Burbank, the real takeaway here is for everyone pay attention to what's happening in your own community. What are the big issues in your city? Are there decisions being made that could impact your neighborhood, your house and your life?

Speaker 3 9:50

Because the first step to making a difference is knowing what's going on your house and your life. Because the first step to making a difference is knowing what's going on Whether you're on team Airbnb or team Keep it Local. It's these conversations that shape the future of our communities. And hey, maybe the next time Burbank tackles a hot button issue, we'll be talking about your public comments.

Speaker 4 10:06

I'm always up for a good deep dive.

Speaker 3 10:08

Me too. That's all the time we have for today, but this conversation is far from over. Burbank residents, stay tuned, because this story is still unfolding.

Speaker 1 10:35

And for everyone else out there, keep asking those tough questions, stay engaged and let please consider helping us by clicking on the super thanks down below or, even better, go to our channel and consider a membership. Your support is what keeps my Burbank going strong.