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Venice News Updates

News of Venice, CA and Marina del Rey CA

This article just touches the short of the long story of the Short-Term Rental (STR) market in Venice

Booking
Don’t leave when the sun sets; stay at the beach. This is an ad for short-term rentals.

Note: Update welcomes your personal input regarding the Short-Term rentals, whether you represent the business or the neighbor. Let’s inform the public. Let’s get both sides of the story.

Short-Term Rentals (STR), Sharing Economy, etc. are the buzz words being bantered about these days by both those who live with it, participate in it, and the City.

The awakening occurred because of neighbors who suddenly found themselves without neighbors. Property owners were awakened by a well-spring of monies in the entrepreneurial endeavor of supply and demand for the short term rentals.

Single-family neighborhoods were transformed into hotel spots occupied by transients paying big bucks. What was worth $100 a day became worth double that at least.

Billion dollar corporations, such as Airbnb, advertised and provided the impetus for the transactions.

No sugar
Homes in quiet communities suddenly had people walking in with suitcases one day and walking out the next. Sometimes, neighbors were awakened by the sound of a party next door, the maid crew early in the morning preparing for the next renter. Lock boxes became the ornaments on the doors and one didn’t know what was to be. Whoever it was or whatever it was, one knew there was no longer a cup of sugar to be had or a calming “How are you” on the phone.

Prices of properties were being based on the income from these units. The availability of long-term rentals dwindled in favor of short term rentals. It was/is a win-win for property owners with short-term rentals.

Private enterprise vs. neighborhood destruction
Questions arise. Does one want to curtail private enterprise? Does one want to destroy a neighborhood? People living with this activity feel their community is gone and their right to quiet habitation is asunder. These people are getting organized and want to do something bout it.

Is it legal? Are there taxes?
Is it legal? Are there taxes? City Planning codes say that rentals less than 30 days in all of Venice with the exception of the commercial are illegal. The codes state that commercial and R-4 and up are legal for such. Venice residential zoning goes as high as R-3. No one appears to be after the homeowner who rents out a room. There is a transient, 14 percent tax on the income.

Enforcement?
If it is illegal, where is the enforcement? Good question. What the City or a community needs is one illegal to be fined/and or brought to justice, and perhaps, others will follow suit. So far, there has not been such.

These are just some of the occurrences, questions, zoning and taxes that have been brought to the attention of the council office. It is happening all over the City and particularly in the tourist areas. The City decided this must be studied with action forthcoming.

City takes action
Councilmen Mike Bonin and Herb Wesson led the charge to get a handle on the Short Term Rentals in Los Angeles with their motion before the City Council, 6 December of last year.

The City Council took the following action 9 December 2014.

1. DIRECT the Office of Finance to send a notice to each host listed on the Airbnb site and all similar sites to inform the hosts of their existing obligation to pay Transient Occupancy Tax (TOT).

2. DIRECT the City Administrative Officer (CAO) to identify any existing contractual relationships between cities and Airbnb/Airbnb competitors and report back to the Budget and Finance Committee with a proposal for similar agreements for the City of Los Angeles.

Not unique to Venice
Short-term rentals plague other cities too—San Francisco, New York, Portland, etc. other countries—Spain, France. They have been banned in many.

Meanwhile, neighbors are banning together to be a voice.

What will happen here is unknown. By the tone of Councilman Bonin’s motion he would like to preserve the neighborhoods and keep the business activity.

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