COLUMBIA – The Columbia Planning and Zoning Commission is scheduled to hold a public hearing Thursday night to hear comments on proposed short-term rental (STR) regulations. This is the first public hearing for the current draft.
STRs are housing options that are typically seen as alternatives to hotels, such as Airbnb or Vrbo.
The city defines a STR as a “residential dwelling unit, portion of a dwelling unit or room within a residential dwelling unit rented by a transient guest.” An STR guest is someone who stays for less than 30 days. Any agreement for 30 days or more is a long-term rental.
A report from 2022 found more than 300 STRs in city limits, but the city says these STRs are currently operating illegally.
“This is not a residential use. This is a home-based business or a commercial use,” Sharon Geuea Jones, chair of the Planning and Zoning Commission, said. “Given that it is a commercial use, there is nothing that allows a property to be used in that way in our current ordinances.”
Jeff Galen is the president of the Columbia Apartment Association. Despite owning several STRs, he does not own one in Columbia.
“Right now I advise most people not to start a short-term rental until this gets resolved,” Galen said.
He says he represents Columbia STR owners who are worried about the proposed regulation ordinance.
“These are small-time mom-and-pop businesses,” Galen said. “So it’s a problem.”
The drafted ordinance would define short-term rentals as well as establish safety standards; collect same lodging tax hotel customers pay; regulate where they could be located; limit the number of STR licenses a person can own; and limit the number of days a customer can rent them.
The regulations the Planning and Zoning Commission drafted would create a three-tier program to classify STRs.
Properties in tier one can only be rented for a total of 30 days in an entire year. That time limit goes up to 120 days in tier two. STRs rented out more than 120 days are considered tier three.
Columbia Board of Realtors member Shawna Nuener says the board wants the drafted regulations to be more simplified.
“There’s these tiers that get very complicated to even figure out what the rules are,” Nuener said. “It would be very easy for a lot of people to inadvertently break the rules without even meaning too.”
Patrick Zenner, city development services manager, says the tiers limit the number of residences in neighborhoods that can be converted to commercial use.
“The Commission’s focus has been on providing an opportunity to ensure the housing stock that is available at an attainable level is not lost,” Zenner said.
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Geuea Jones says the commission saw the need.
“What we saw was a lot of homes that are normally priced in the starter home range, so under $200,000, were being bought up and being used as full-time, short-term rentals,” Geuea Jones said.
But Galen argues that STRs don’t impact affordable housing.
“Unfortunately we’re talking about 370 short-term rentals, out of 53,000 homes in the city,” Galen said. “We do know that it is a problem, and we want to see that problem addressed, but this is not where we deal with it at.”
Galen added that the proposed time limits would make it harder for STR owners to make a profit.
“The majority amount, on a nationwide basis, rent their homes for 250 days or more a year,” Galen said. “At 120 days, it becomes questionable whether the business is viable. At 30 days, which is also written in that ordinance, it doesn’t make sense to do a short-term rental.”
In 2022, more than 400 residents responded to a survey from the city regarding STRs.
A majority did not believe there should be regulations on the number of STR licenses someone could have. The majority also believed there should not be a limit on the number of days an STR could be rented out per year.
“People do support us owners in making sure we can continue to have short-term rentals,” Galen said.
The city is encouraging STR owners concerned about the limits to also get long-term rental licenses. Those would allow for properties to be rented out for 30 days or more at a time.
The same property can be used as a long-term and a STR.
“The ordinance does not forbid an individual the opportunity to rent on a long-term basis concurrently,” Zenner said.
But for Galen and other STR owners, the fear is that the ordinance as written will run them out of business. For now, he just appreciates the fact the regulations have not made it past City Council.
“We continue to operate our businesses,” Galen said. “It’s the moment that this gets passed in bad form that we have concerns because then it shuts us down.”
The public hearing begins at 7 p.m. Thursday in Council Chambers at City Hall.