Washoe’s Board of County Commissioners on Tuesday directed staff to work on proposed amendments to regulations governing short-term rentals. That direction was approved despite concerns expressed by Commissioners Mike Clark and Jeanne Herman.
Clark said getting the county involved in allowing and regulating short-term rentals (STRs)—which it has since May 2021—was like spending money to irritate residents. The significant issues with the STRs, he said, were parking, noise, trash and fees. He added, however, that the time and money spent to discuss, regulate and staff the program affects relatively few residents but builds “an empire [and] the majority of the folks are going to pay for the long-term representation of enforcement.”
STRs, such as AirBnB and Vrbo rentals, have been a controversial issue in Washoe County, partly because of the lack of affordable housing and housing units converted from long-term or owner-occupied homes into short-term rentals, mainly for tourists. In Incline Village, homeowners have railed against STRs because of limited parking, issues with the trash that attracts bears, and noise and other issues vacationers impose upon residents.
Among the proposed changes to Washoe County’s STR regulations, one would ban accessory dwelling units—also known as granny flats—from being used as STRs in the Lake Tahoe area. One speaker during public comment said banning the use of ADUs for short-term rentals in Incline Village is “absolutely critical.”
Violations for trash, noise and disturbing the peace issued by other agencies, such as a general improvement district of the Washoe County Sheriff’s Office, would also count as violations toward an STR permit. Those violations would be levied on a tiered basis, with penalties increasing for each violation until the county revokes the license.
“It really comes down to enforcement, whoever’s jurisdiction that is,” Commissioner Clara Andriola said. She asked what the costs for enforcement were, such as increasing staff.
Trevor Lloyd, a planning manager with the county, said increased fees and penalties would not cover the enforcement costs for STRs.
“we’re going to need a supervisor…you can just see how this thing snowballs.”
“Really, it’s more of a way of incentivizing STR owners not to violate,” Lloyd said.
The county has one staff member to enforce the regulations for STRs. Kelly Mullin, a planning manager for the county, said STR fees increased in October and allowed the department to add some temporary staff to help with permitting. Those positions may be turned into permanent positions with duties that would include supporting the enforcement of STR permits.
This addition of permanent positions was a concern for Clark.
“I think we should look at limiting the county’s involvement in this and not hiring employee after employee,” he said. “Pretty quick, we’re going to need a supervisor…you can just see how this thing snowballs.”
Clark said he wanted the county to work within budget rather than continually grow.
Other regulation amendments proposed would change details related to permitting, including allowing STR owners to adjust their renewal date by paying a pro-rated permit fee, eliminating the requirement of a notary for renewals, and reducing the appeal period from 30 to 14 days.
Properties that are sold would not carry the STR permit with the sale; new owners would need to secure their own STR permit for that property. Permits would also be revoked for those who have illegal construction on their properties, and any owner whose permit is revoked can’t get a new permit for at least one year.
County staff hosted several local workshops to discuss the proposed changes, and in the most recent round, 76 residents participated—one-third of whom were Incline Village residents. They also received more than 50 written comments on the proposals.
Residents in Incline Village who spoke via remote public comment thanked the county for listening to their feedback and exploring changes to the county’s STR policies. Some said they were grateful for the changes but wanted to see more, including caps on the number of STR permits.
Linda Smith, a homeowner in Incline Village’s Tyrolian Village, has been outspoken about STRs in her community. She said she was against many of the county’s proposed changes, including eliminating notarization requirements and offering grace periods for permit renewals.
She also said some of her neighbors already lie about using their homes as primary residences to get a lower property tax rate while actually using it as a full-time STR; giving them discounts on permits would further reward those homeowners for their dishonesty.
The county shouldn’t be awarding permits to homeowners whose STR properties are within a homeowners’ association that bans STRs, Smith added, and STR owners in hers and other Incline Village communities have lobbied county staff to award permits based on inaccurate parking space information, taking parking away from residents.
Other STR owners said they were more concerned with fees, which are levied at rates that disproportionately impact owners with small STRs.
Commissioners approved requesting staff to move forward with work to amend STR regulations, with Commissioners Alexis Hill, Mariluz Garcia and Clara Andriola voting in favor. Commissioner Herman opposed it, and Commissioner Clark was absent for the vote.
