Review Ordinance #21-17 Amending Rental Licensing Requirements to Include Short-Term Rentals

The purpose of this case is to clarify existing regulations for rental units throughout Ramsey. Staff has received an increased number of requests related to short term rentals (STRs), such as VRBO and AirBNB. It appears that these types of uses are becoming more popular throughout Ramsey, allowing owners to rent their homes when they're away. The existing regulations appear to require a rental license for any type of rental (even if short term), but Staff would like to solidify that and clarify the existing regulations in order to provide the regulations in writing to interested parties.

The cost for a rental license is $25 for three (3) years for a standard residential home. This license allows the City to inspect the property for building and fire code compliance upon request, to ensure the safety of tenants. Most cities throughout the metro area have rental license programs. Ramsey's rental license program is largely scaled back, minimal, and less expensive than other city's programs. Staff has found that the ease of the program has helped with voluntary compliance.

The only change requested at this time is updating the ordinance to explicity include short term rentals (STRs) in the rental ordinance requirements.

Notification will be held with City Council meeting; this case is meant as an update for the Planning Commission and to allow the Planning Commission to provide feedback prior to Council meetings.

Staff is handling this case as part of regular duties.

Staff recommends adoption of Ordinance #21-17.

Motion to recommend the City Council adopt Resolution #21-17 amending the Rental Residential Dwelling Units section of City Code to explicity include requirements for Short Term Rentals to receive a rental license.