Bakersfield does not have a short-term rental problem

This sounds like a solution looking for a problem.

Bakersfield City Council committee members, who are proposing to crack down on short-term rentals, admit they have received few citizen complaints about the rentals.

But that hasn’t stopped them from instructing city staff to draft an ordinance to create a focused regulatory program.

Allowing that regulating short-term rentals is not a pressing problem, Councilman Bob Smith told The Californian, “We believe, it’s a better way to police the situation and that there is tax revenue from it.”

Head-scratcher — Police a situation that seems to exist without seeming to need more policing?

Short-term rentals are dwellings rented out for a day, week, etc., in much the same way as a hotel room is “rented out.”

Often renting is coordinated by firms, such as Airbnb, Vacation Rentals By Owners, etc. Sometimes, individual property owners “do their own thing” — rent out rooms or houses without management company help.

Short-term rentals are in high demand in tourist destinations, but not so much in Bakersfield, which is not generally considered a tourist magnet. City staff estimates there may be about 500 short-term rentals operating in Bakersfield.

In some cities, short-term rentals have caused friction between neighbors and rental property owners. Complaints have included noise, parking, trash and general disruptions. Smith acknowledges this is not the case in Bakersfield.

The short-term rental industry is highly regulated throughout the state — even in Bakersfield.

State law defines short-term rentals as any residential property rented to an individual or group for 30 consecutive days or less.

All short-term rental operators in California must register with the state Department of Tax and Fee Administration and collect Transient Occupancy Tax from guests. That tax is 12% in Bakersfield.

Short-term rental operators in Bakersfield already are subject to local regulations that include registering with the city, having a city business license, obtaining a fire safety permit, proving property ownership, maintaining adequate insurance, providing contact information and guest registries, complying with occupancy limits and parking plans, and registering to collect and remit to the city Transient Occupancy Tax.

Among the city departments overseeing compliance are Development Services, Finance and Fire. The Police Department and Code Enforcement respond to complaints.

BnbCalc.com, an online service that advises property owners, points out “Bakersfield’s short-term rental market is governed by a complex web of local ordinances and zoning codes designed to balance the interests of property owners, residents and the community at large.”

But BnbCalc.com reports that based on feedback from Reddit and the real estate investing forum BiggerPockets, “Bakersfield appears to have a relatively moderate approach to enforcing short-term regulations, compared to other California cities. While the city does have regulations in place, the enforcement levels seem to be less stringent than in some more tourist-heavy locations.”

If the council decides to change this “moderate approach” — creating a program focused on identifying every short-term rental, collecting taxes owed, and assuring every permit is obtained — city staff estimates that it would cost between $200,000 and $400,000 to hire staff to run it.

Instead, they estimate a firm could be contracted for less than $50,000 a year to oversee the program.

Just what would that money buy? Merely processing paperwork and collecting taxes, or actually seeking out compliance from permitted operators and identifying “unlicensed operators?”

The Kern County Treasurer/Tax Collector contracts with a firm to collect the county’s Transient Occupancy Tax for short-term rentals.

Ironically, as the city’s program gets more aggressive and more short-term rental operators are identified, more city staff — code enforcement, police, fire, etc. — will be required to force permitting compliance.

The existing system that spreads responsibility among various city departments needs to increase oversight, rather than a new program be created.

According to a city memo, if the full council decides to pursue the committee’s proposal to create a focused short-term rental program, adopting an ordinance will require significant staff research and community outreach before it can be adopted.