Fullerton’s City Council is set to regulate short-term rentals at their meeting tomorrow night after nearly five years of discussion.
The proposed measure would force short- term rental owners to register with the city and pay an annual registration tax of $25. In addition, the council would institute a tax based on the nightly rate for the rental and create new standards for renters.
According to the city’s report, Fullerton currently has no regulations in place, which has led to a series of complaints from residents over parking violations, noise and trash that they say the council must fix.
Airbnb, Homeaway and similar businesses have exploded in popularity over the last several years. There are more than 300 properties listed for Fullerton allow guests to stay for a night or several days.
Under the new arrangement, renters would be required to observe a quiet period from 10 p.m. to 7 a.m., as well as keep the properties clean and provide parking to prevent clogging up streets.
The city would also start collecting transient occupancy taxes, also known as TOT taxes, similar to those required at traditional hotels and motels. Fullerton’s tax would be 10% of the nightly rate for the room.
There are nearly 500 listings in Fullerton for short-term rentals, and the city projects that the new taxes would bring in over $340,000 a year in revenue if each rental was occupied at least 90 days a year, something the city is desperately searching for as projections warn they could run out of savings by 2025.
The city is also considering a separate resolution that would set a maximum of 325 full-house rentals.