A set of regulations for rentals under 30-days received an initial vote of approval by Redwood City Council last week. Among them are: a requirement for homeowners to live in the residence they are listing for rent, limiting the number of days a renter can stay in the home without a host present, prohibiting rentals for special events, requiring on-site parking for renters, and collecting transient occupancy tax (hotel tax) on short term rentals.
A 12% transient occupancy tax would be applied on top of what homeowners charge for their rentals. The tax would be collected on short term rental platforms like Airbnb, who would periodically dole it out to the city. The city estimates that this tax would generate roughly $400,000 annually, which would be dedicated entirely to an affordable housing fund.
Though the ordinance was approved by a 4-0 vote by city council last week, won’t take effect until 2019. It will be brought back to council for a second reading in February, as three Councilmembers were absent from last week’s meeting.