Toledo councilmen look to regulate Airbnb, Vrbo operators

Jun. 23—Toledo City Council members Theresa Gadus and Katie Moline believe their proposed regulations of short-term rentals would protect property owners and customers alike by setting occupancy limits and establishing safety standards.

"A lot of other cities have gone down a much more stringent path to the point that some have introduced moratoriums to not even allow short-term rentals," Ms. Moline said during a committee meeting on the matter Wednesday afternoon. "We tried to find a good middle ground where we can promote the safety of neighborhoods, we can ensure guests are safe, but we're also allowing these services to engage."

Ms. Gadus and Ms. Moline introduced the legislation in May driven by residents' complaints about large, disruptive parties at short-term rentals. They put a vote on hold in order to hear from community members first.

Should the ordinance pass, property owners who rent dwellings for 30 days or less — such as those who use the platforms Airbnb or Vrbo — would have to obtain a permit in order to legally operate.

The regulations would establish maximum occupancy at two occupants per sleeping room plus an additional two guests. It also would impose safety standards including fire-safety and carbon-monoxide monitoring, as well as requiring contact information for a local representative who would be on-call at all hours to address complaints or concerns within 45 minutes of notification.

The annual permit would carry a $50 fee and applicants would have to provide proof of general-liability insurance of at least $1 million and be current or on a payment plan for taxes and utilities. Any property owner operating a short-term rental without a valid permit would be subject to a $100 weekly fine with a maximum of $500, according to the legislation.

The legislation exempts state-licensed health-care facilities; hotels, motels, and inns; bed-and-breakfasts properly approved by the city of Toledo; campgrounds, and dwelling units rented according to a written month-to-month lease.

"It should not disrupt normal and intended uses of the services that we're talking about with short-term rentals," Ms. Moline said.

Only a handful of Toledoans attended the 3 p.m. committee meeting at One Government Center, but councilman Rob Ludeman said many emails about the topic have come in.

Carol Walls, who owns rental properties but doesn't participate in short-term, Airbnb-type rentals, said more people likely would have attended Wednesday's meeting if it was held after normal work hours. She voiced concerns about the proposed ordinance and said she believes the problem is with booking platforms not vetting customers properly, not with the property owners themselves.

"Vrbo or Airbnb or whoever they get booked through, that's who interviews the people that stay there, not the owners of the property," she said. "I think you're going after the wrong people."

Anna Mills, a local real-estate investor, shared the same perspective. She also took issue with the proposed ordinance's requirement that short-term rental operators both post their permit on the property and mail notifications to all adjacent properties.

"I think this needs to be thought out a little," she said.

Ms. Gadus and Ms. Moline said they have researched how other Ohio cities and how major U.S. cities handle regulating short-term rentals, and they've also sought feedback from current operators in Toledo. Ms. Gadus emphasized the regulations are for the type of rentals used for a weekend stay or a vacation — almost like a hotel room — not as a month-to-month or half-year lease with a landlord.

"This gives the neighbors transparency on what's going on in their neighborhood, it's providing support for the hosts of an Airbnb.... As we've worked with people and worked with the law department, this is all within keeping safe, healthy, and vibrant neighborhoods," Ms. Gadus said.

Councilman Cerssandra McPherson and Mr. Ludeman expressed concerns about government overreach and wondered if the city's nuisance regulations already cover issues such as over-occupancy and loud parties.

"Are we reaching into areas that are not our governing area? I question that," Ms. McPherson said.

The proposed regulations could be up for a vote as soon as city council's next voting meeting, which is scheduled for July 20 at 4 p.m.