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Marin issues virus restrictions on short-term rentals - Marin Independent Journal

Marin health authorities managing the coronavirus crisis have issued a countywide order banning all short-term rentals for non-essential reasons.

The order puts further strain on property hosts already coping with cleared calendars and looming mortgage and lease payments.

“We all have a responsibility to do our part to flatten the curve,” said Dr. Lisa Santora, deputy public health officer for Marin County. “Traveling to or within Marin for vacation is non-essential and puts our vulnerable populations are risk.”

The order, issued Thursday, restricts guests from booking stays for 30 days or less in lodging facilities for non-essential travel reasons. The restrictions are expected to be lifted May 3.

The tougher rules were added to a March 31 order as vacationers and visitors continued to spend nights in hotels, timeshares, short-term rentals, bed-and-breakfasts and other lodging sites throughout the county for 30 days or less, according to county officials.

Exemptions within the order, however, allow hosts to rent out rooms to homeless people; provide a place to stay for residents who have been displaced due to a household member’s infection; lodge infected residents who need to quarantine; support essential health care workers, infrastructure or businesses; or help residents who are displaced from their homes because of uninhabitable living conditions such as violence or sanitation problems.

As of April 1, there were 843 active short-term rentals registered for both a business license and a transient occupancy tax certificate number, according to county finance officials.

Many short-term rental owners who listed their rooms online through companies such as Airbnb, VRBO and Homestay were already scrambling — and now they are panicking, said Adrienne Biggs, a property manager for short-term rental hosts.

Before the county order, many hosts lowered their booking prices by 20% to 50%, applied to corporate sponsored relief packages through Airbnb, and searched Craigslist for housing wanted ads in an attempt to make ends meet.

“It’s difficult because people thought they were going to be making what they did pre-COVID,” Biggs said. “A lot of people were making a lot of extra money on this, but at this point just know it’s hopefully temporary and this is not a time to consider making money off the most needy people who need housing. This is a time to cover your bases and rethink your own expenditures and lifestyle.”

Sandra Luna, who rents out her San Rafael duplex on Airbnb and VRBO, said that since coronavirus restrictions went into effect last month, about eight guests have canceled their bookings — emptying her calendar through June.

“Each one was roughly anywhere between $850 and $2,300 a night,” Luna said. “I know I’ve lost thousands of dollars. Most of March, all April and all of May is shot. The only booking I have right now is a woman staying long term.”

The long-term tenant in her other rental residence in Petaluma is a nurse, she said.

Some proprietors of traditional independent hotels and bed-and-breakfasts have laid off nearly all their workers and are considering taking out loans. Last month, Binoy Patel, owner of the Panama Hotel in San Rafael, cut a staff of 29 down to himself and a maintenance worker. He said most of his guests booked rooms for non-essential travel.

“I’ve never experienced this and I’ve been in the hotel industry for 35 years,” he said. “We’ve gone through 9/11, SARS, Ebola and H1N1 — but nothing to this scale.”

Short-term vacation rentals are not considered an essential business, said Cristy Stanley, county code enforcement specialist. However, she said, the rules do not stop the residence from being used by the owner, a family member or a friend who is following the state and local “shelter in place” orders.

“The residence could also be used to support essential business activities and essential government functions within the county,” Stanley said. “Such as housing for a health care or emergency response worker who needs to be close to their place of employment.”

If someone reports a violation of the order to the Marin County Sheriff’s Office, the property manager or renter would be asked for proof of the “essential” reason the residence is being rented. If officers determine there is a violation they will ask the owner to comply. If the owner refuses, officers can issue a misdemeanor citation.

There were already restrictions on short-term rentals throughout Marin, with many having to pay more in transient occupancy taxes and business license taxes compared to other counties, said Ulrik Bimzer, Host Compliance founder.

Host Compliance, a Silicon Valley short-term rental compliance and monitoring consultant, has contracts with Marin County, Mill Valley, Sausalito, San Rafael and Petaluma.

“California-wide the data shows that approximately a quarter of hosts have blocked out their calendars and are not accepting bookings for the next three months,” Bimzer said. “There is definitely a number of people who are complying with this. The other three-fourths, I cannot say with certainty that they would accept bookings or not.”

Biggs said that not only will the hospitality sector feel the financial strain, but the county will lose a big chunk of tax revenue.

“Don’t expect to have a family from L.A. come up for a fun weekend,” Biggs said. “That’s not going to happen. We need to help locals in their time of need, that’s what we should do.”

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