Saratoga council considers short-term housing rental policy

The Saratoga City Council is considering permitting short-term housing rentals in the city, but expressed concern that residents were not contacted to voice their opinions on the matter.

The council voted unanimously on Oct. 1 to move staff’s draft short-term rentals law to the planning commission for a public hearing before returning the issue to council. Saratoga doesn’t formally allow short-term rentals, but Bryan Swanson, who presented the staff report, said he had not heard any complaints about them.

Short-term rentals are those that typically last less than a month, often for vacation or business travel. Swanson said they would allow a maximum of 5% of Saratoga’s housing stock to be turned into these kinds of properties, or 575 units out of the 11,500  available in the city. Staff said the city could raise around $80,000 in transient occupancy taxes from the properties.

“This would be an opportunity to establish a program where if there are (short-term rentals) that are operating without a license, they have to come into compliance, they have to pay the (transient occupancy tax) revenue for the past two years I believe they have been operating,” Swanson said.

Councilmembers Yan Zhao and Tina Walia expressed concerns about how short-term rentals could change the character of Saratoga, but they acknowledged the need for revenue and workforce housing that the rentals could provide. Swanson said common complaints about short-term rentals include noise, parking and trash left uncollected.

The draft of the law states that no accessory dwelling units, junior or otherwise, could be rented out. Mayor Belal Aftab argued for reconsideration as many homeowners with ADUs may be “aging in place,” and allowing them to rent out the secondary suite would give them a secondary source of income and some companionship.

The planning commission has yet to agendize the issue.