Hemet Municipal Code Art. XVIII Short-Term Lodging

The purpose of this article is to establish a registration system and minimum operating standards for short-term rentals in the city to protect public health, safety, and neighborhood character, while allowing for responsible short-term rental activity.

(Ord. No. 2060, § 1, 6-24-25)

For the purpose of this article, the following definitions shall apply:

Accessory dwelling unit shall have the same definition as set forth in section 90-4.

Administrative services director shall mean the administrative services director of the city or his or her designee.

Agent shall mean any person who is authorized in writing by the owner to represent and act for an owner.

Booking transaction shall mean any reservation or payment service provided by a person who facilitates a short-term lodging rental transaction between a transient user and owner for the use of a unit for a period of less than 30 consecutive calendar days.

City manager shall mean the city manager of the city or his or her designee.

Gross floor area shall mean the area of the lodging unit that includes the surrounding exterior walls and any interior finished portion of a structure that is accessible and that measures more than six feet from finished floor to ceiling. Stairwells and elevator shafts above the first level shall be excluded from the calculation of gross floor area.

Home-sharing shall mean an activity whereby the owner hosts a transient user in the owner's lodging unit, for compensation, for periods of less than 30 consecutive calendar days, during which time the owner of the unit lives on site, in the unit, throughout the transient user's stay and the owner, the transient user and any other occupants live together in the same unit as a single housekeeping unit.

Hosting platform shall mean a person, other than an owner or agent, who participates in the short-term lodging business by facilitating a booking transaction using any medium of facilitation.

Lodging unit or unit shall mean a "dwelling unit" as that term is defined in section 90-4. An accessory dwelling unit shall not be considered a lodging unit or unit for purposes of this chapter.

Owner shall mean the person(s) that hold(s) legal and/or equitable title to the lodging unit.

Person shall mean any individual and any form of business entity including, but not limited to, all domestic and foreign corporations, associations, syndicates, joint stock corporations, partnerships of every kind, clubs, business or common law trusts, societies, or limited liability companies.

Residential district shall mean those areas of the city so designated by chapter 90 as well as any other area in the city designated for a residential use as part of a planned community development plan, specific area plan or planned residential district.

Short-term shall mean a lodging unit that is rented or leased as a single housekeeping unit for a period of less than 30 consecutive calendar days. This also includes home-sharing.

Transient or transient user shall mean any person or persons who, for any period less than 30 consecutive calendar days either at his or her own expense, or at the expense of another, obtains lodging in a lodging unit or the use of any lodging space in any unit, for which lodging or use of lodging space a charge is made.

(Ord. No. 2060, § 1, 6-24-25)

Only properties zoned residential under chapter 90 shall be eligible for a short-term lodging permit.

(Ord. No. 2060, § 1, 6-24-25)

No owner of a lodging unit shall advertise for rent or rent a lodging unit located within the city for a short term without a valid short-term lodging permit for that unit issued pursuant to this chapter.

(Ord. No. 2060, § 1, 6-24-25)

An owner may retain an agent to comply with the requirements of this chapter, including, without limitation, the filing of an application for an annual permit, the renewal of a permit, the reinstatement of a permit or the transfer of a permit; the management of the short-term lodging unit or units; and the compliance with the short-term lodging permit conditions. The permit shall be issued only to the owner of the short-term lodging unit or units. The owner of the short-term lodging unit or units is responsible for compliance with the provisions of this chapter, and the failure of an agent to comply with this chapter shall be deemed noncompliance by the owner.

(Ord. No. 2060, § 1, 6-24-25)

(a) An application for an annual short-term lodging permit, renewal of a short-term lodging permit, reinstatement of a short-term lodging permit, or transfer of a short-term lodging permit shall be filed with the administrative services director upon forms provided by the city.

(b) An application for the renewal of a short-term lodging permit shall be filed within 30 calendar days of the short-term lodging permit's expiration, or the short-term lodging permit shall be deemed abandoned.

(c) An application for the reinstatement of a short-term lodging permit closed by the administrative services director pursuant to section 18-716 shall be filed within 30 calendar days of the date the permit was closed by the administrative services director, or the short-term lodging permit shall be deemed abandoned.

(d) An application for the reinstatement of a previously suspended short-term lodging permit shall be filed within 30 calendar days of the end of the suspension period, or the short-term lodging permit shall be deemed abandoned.

(e) If any application is deemed incomplete, which shall be determined in the sole discretion of the administrative services director, the application shall be completed within 30 calendar days of the service of notice that the application is incomplete, which shall be served in accordance with section 1-30, or the application and any associated permit shall be deemed abandoned.

(f) If good causes exist, as determined in the sole discretion of the administrative services director, the administrative services director may extend the deadlines set forth in subsections (b) through (e) of this section.

(Ord. No. 2060, § 1, 6-24-25)

No timely application filed by an owner for an annual permit, renewal of a permit, reinstatement of a permit or transfer of a permit for a unit eligible to be used as a short-term lodging unit, as provided for in section 18-702 and this Code, shall be denied unless: the owner does not have a current valid business license; the owner has failed to pay transient occupancy tax, a penalty, a fine or inspection cost, due and owing to the city; or the short-term lodging permit for the same unit and issued to the same owner has been revoked.

(Ord. No. 2060, § 1, 6-24-25)

An application for a new annual permit, the renewal of an existing permit, the reinstatement of a permit, or the transfer of a permit shall be accompanied by a fee established by resolution of the city council; provided, however, the fee shall be no greater than necessary to defer the cost incurred by the city in administering the provisions of this chapter and for providing the answering service.

(Ord. No. 2060, § 1, 6-24-25)

(a) A short-term lodging permit that is valid and has not been abandoned in accordance with subsections 18-705(b)—(f), may be transferred to any of the following:

(1) If the owner transfers the ownership of the lodging unit to an inter vivos trust, family trust, or other similar type of trust estate, a valid short-term lodging permit may be transferred to the inter vivos trust, family trust, or other similar type of trust estate, if an application to transfer a valid permit, in accordance with section 18-705, is filed within 365 days of the date title is transferred to the inter vivos trust, family trust, or other similar type of trust estate.

(2) If the owner transfers the ownership of the lodging unit to a corporation, limited liability company, partnership, limited partnership, or similar business entity, a valid short-term lodging permit may be transferred to the business entity, if an application to transfer a valid permit, in accordance with section 18-705, is filed within 365 days of the date title is transferred to the business entity.

(3) If the owner transfers the ownership of the lodging unit to an immediate family member, which shall include a spouse, domestic partner, child, stepchild, grandchild, parent, stepparent, mother-in-law, father-in-law, son-in-law, daughter-in-law, grandparent, great-grandparent, brother, sister, half-brother, half-sister, stepsibling, brother-in-law, sister-in-law, aunt, uncle, niece, nephew, or first cousin (that is, a child of an aunt or uncle), a valid short-term lodging permit may be transferred to the immediate family member, if an application to transfer a valid permit, in accordance with section 18-705, is filed within 365 days of the date title is transferred to the immediate family member.

(4) If the owner sells the lodging unit to a bona fide purchaser for value, a valid short-term lodging permit may be transferred to the purchaser, if an application to transfer a valid permit is filed in accordance with section 18-705, within 60 days of the date title is transferred to the purchaser.

(5) If the owner is deceased, the short-term lodging permit for the short-term lodging unit may be transferred to the heir(s) once the estate is closed and the assets distributed, if an application to transfer a valid permit is filed in accordance with section 18-705, within 90 days of the date the heir(s) becomes the owner of the short-term lodging unit.

(b) The deadlines set forth in subsection (a) of this section are established for purposes of setting deadlines for the transfer of a valid permit that has not been deemed abandoned in accordance with subsections 18-705(b)—(f). The deadlines set forth in subsection (a) of this section shall not extend the deadlines set forth in or in accordance with subsections 18-705(b)—(f). Authorization to transfer a valid short-term lodging permit shall be deemed waived and the permit abandoned if an application is not filed to transfer a permit in accordance with the deadlines set forth in subsection (a) of this section, unless the administrative services director determines that good cause has been shown for extending the deadline.

(Ord. No. 2060, § 1, 6-24-25)

All permits issued pursuant to this chapter are subject to the following standard conditions:

(1) The owner shall prohibit a lessee of a lodging unit from renting the lodging unit to a transient user for a short-term and from home-sharing.

(2) The owner shall not rent a lodging unit to a transient user that is under the age of 25.

(3) The owner shall enter into a written agreement with the transient user that limits the overnight occupancy of the short-term lodging unit to the maximum permitted by the building code and fire code.

(4) The owner shall ensure that the transient user complies with all terms of the written agreement set forth in subsection (3) above.

(5) The owner shall use best efforts to ensure that the transient user, occupants and/or guests of the short-term lodging unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of this Code or any state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol, or the use of illegal drugs.

(6) The owner shall, upon notification that any transient user, occupant and/or guest of his or her short-term lodging unit has created unreasonable noise or disturbances, engaged in disorderly conduct or committed violations of this Code or any state or federal law pertaining to noise, disorderly conduct, the consumption of alcohol or the use of illegal drugs, promptly use best efforts to prevent a recurrence of such conduct by any transient user, occupant or guest.

(7) The owner of the short-term lodging unit shall use best efforts to ensure compliance with all the provisions of this Code.

(8) The owner of the short-term lodging unit shall provide the transient user with a copy of this section.

(9) The owner of the short-term lodging unit shall provide the transient user with a copy of the good neighbor policy created by the city and available on the city website, post a copy of the short-term lodging permit and post a copy of the conditions set forth in this subsection in a conspicuous place within the unit. The notice shall be in substantial compliance with a template created by the city, which shall be available on the city website, and contain the following:

a. The name of the local contact person(s) and the phone number at which that person(s) may be reached on a 24-hour basis. The local person(s) must be located within 25 miles of the unit and shall respond to any call related to the unit within 30 minutes;

b. The number and location of on-site parking spaces;

c. The street sweeping schedules for all public rights-of-way within 300 feet of the unit;

d. The trash collection schedule for the unit, and the Code rules and regulations concerning the timing, storage and placement of trash containers and recycling requirements;

e. Notification that no amplified sound or reproduced sound is allowed outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m.;

f. Notification that any transient user, occupant or guest is responsible for all activities occurring on the property and that any transient user, occupant or guest may be cited and fined for creating a disturbance or violating any provision of this Code.

(10) The owner shall:

a. Ensure that all transient occupancy taxes are collected and remitted to the city and otherwise comply with all transient occupancy tax requirements.

b. If the owner uses an agent to collect and remit the transient occupancy tax, either voluntarily or as directed by the city, the owner shall be responsible for ensuring that the agent collects and remits the transient occupancy tax to the city.

c. If the administrative services director directs, in writing, a hosting platform to collect and remit the transient occupancy tax, the owner shall:

1. Be responsible for ensuring that the hosting platform collects and remits the transient occupancy tax to the city in accordance with this chapter; and

2. When filing a return, the owner shall provide the city with a copy of all receipts showing the date the short-term lodging unit was rented, the name of the hosting platform, the amount of transient occupancy tax collected by the hosting platform, and proof that the transient occupancy tax was remitted to the city.

(11) The owner shall provide the city with the name and 24-hour phone number of a local contact person(s) (who resides within 25 miles of the property) who shall respond to contacts from the answering service, respond to any call related to the unit within 30 minutes, and ensure compliance with this chapter in a timely manner. The owner or agent must provide a new local contact person and his or her phone number within five business days, if there is a change in the local contact person(s).

(12) The owner shall ensure that all available parking spaces on site, which may include garage, carport, and driveway spaces as well as tandem parking, are available for the transient user, occupant, or guest of the short-term lodging unit. The owner shall disclose the number of parking spaces available on site and shall inform the transient user, occupant and/or guest that street parking may not be available.

(13) The owner shall maintain a valid business license and short-term lodging permit when engaging in short-term lodging.

(14) The owner shall include the city-issued short-term lodging permit number on all advertisements for the rental of the short-term lodging unit and shall ensure the transient user is informed of the amount of the transient occupancy tax prior to completion of the booking transaction.

(15) The owner shall ensure that a permitted short-term lodging unit is only used for residential purposes and not used for nonresidential uses, including, but not limited to, large commercial or noncommercial gatherings, commercial filming, and/or non-owner wedding receptions.

(16) The owner shall ensure that no amplified sound or reproduced sound is used outside or audible from the property line between the hours of 10:00 p.m. and 10:00 a.m. and that the transient user does not violate the requirements set forth in this Code.

(17) The owner shall allow the city to inspect the short-term lodging unit to confirm the number of bedrooms, gross floor area, and number/availability of parking spaces, seven calendar days after the city serves the owner with a request for inspection. If, based on the inspection, it is determined that the information submitted to the city in accordance with section 18-705 was false, in addition to any other remedy set forth in this chapter, the owner agrees that the owner shall be liable for the cost of conducting the inspection.

(18) The owner shall provide the city with a copy of any written rental agreement(s) and the good neighbor policy, within seven calendar days after the city serves the owner with a notice of request for written rental agreements and the good neighbor policy.

(19) The owner shall require every transient user and guest of the transient user to comply with all state and local laws that regulate parking while staying at or visiting the short-term lodging unit.

(20) The city manager shall have the authority to impose additional standard conditions, applicable to all short-term lodging units, as necessary to achieve the objectives of this chapter.

(21) The city manager shall have the authority to impose additional conditions on any permit in the event of any violation of the conditions of the permit or the provisions of this chapter subject to compliance with the procedures specified in section 18-714.

(Ord. No. 2060, § 1, 6-24-25)

(a) In addition to other provisions of this Code, it shall be unlawful for any transient user, occupant or guest of a short-term lodging unit to:

(1) Exceed the overnight occupancy limit designated for the short-term lodging unit.

(2) Use street parking prior to utilizing all available on-site parking space(s) for the lodging unit.

(3) Place trash for collection in violation of this Code's rules and regulations concerning:

a. The timing, storage or placement of trash containers; or

b. Recycling requirements.

(4) Amplify or reproduce sound between the hours of 10:00 p.m. and 10:00 a.m.:

a. Outside of the lodging unit; or

b. That is audible from the property line for the lodging unit.

(5) Use the short-term lodging for any nonresidential purpose, including, but not limited to, large commercial or noncommercial gatherings, commercial filming and/or non-owner wedding receptions.

(6) Rent a lodging unit to any person for a short-term.

(b) In addition to other provisions of this Code, it shall be unlawful for any lessee to rent a lodging unit to any transient user for a short-term.

(Ord. No. 2060, § 1, 6-24-25)

(a) If directed to do so by the administrative services director, in writing, agents or hosting platforms shall:

(1) Collect all applicable transient occupancy taxes that are imposed on the transient, pursuant to this Code, from the transient, or from the person paying for such rental, at the time payment for such rental is made;

(2) Remit to the city any transient occupancy taxes collected by the hosting platform or agent to the city before the last day of the month following the close of each calendar quarter or on the day specified by the administrative services director if a different reporting period has been established.

Hosting platforms shall not collect or remit such taxes unless expressly authorized to do so by the administrative services director, in writing.

(b) Subject to applicable laws, agents and hosting platforms shall disclose to the city on a regular basis each home-sharing and vacation rental listing located in the city, the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay.

(c) Agents and hosting platforms:

(1) Shall prompt any person utilizing their advertising services to include the city-issued registration number in their listing(s), in a format designated by the city, and shall not advertise any short-term lodging unit where a registration number is not provided. Upon notice from the city that a listing is noncompliant, agents and hosting platforms shall cease any short-term rental booking transactions for said listing(s) within five business days. An agent or hosting platform shall not complete any booking transaction for any short-term lodging unit subject to a city notice that a unit is noncompliant, until notified by the city that the short-term lodging unit follows the local registration requirement.

(2) Shall not collect or receive a fee, directly or indirectly, for facilitating or providing services ancillary to an unpermitted short-term lodging unit including, but not limited to, insurance, concierge services, catering, restaurant bookings, tours, guide services, entertainment, cleaning, property management, or maintenance of the short-term lodging unit.

(d) A hosting platform operating exclusively on the internet, which operates in compliance with subsections (a), (b), and (c) of this section, shall be presumed to be in compliance with this chapter, except that the hosting platform remains responsible for compliance with the administrative subpoena provisions of this chapter.

(e) The provisions of this section shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by, such law(s).

(Ord. No. 2060, § 1, 6-24-25)

The city manager shall have the authority to issue and serve administrative subpoenas to the owner, agent or hosting platform, as necessary, to obtain specific information regarding short-term rental listings located in the city, including but not limited to the names of the persons responsible for each such listing, the address of each such listing, the length of stay for each such listing and the price paid for each stay, to determine whether the short-term rental listing complies with this chapter. Any subpoena issued pursuant to this section shall not require the production of information sooner than 30 calendar days from the date of service. A person who has been served with an administrative subpoena may seek judicial review during that 30 calendar day period. Failure to respond to an administrative subpoena in accordance with the terms set forth therein shall be punishable in accordance with section 18-713, and the city may file a judicial action to compel compliance with the subpoena.

(Ord. No. 2060, § 1, 6-24-25)

(a) It shall be unlawful for any person to violate any provisions or to fail to comply with any of the requirements of this chapter.

(b) In addition to, or separate from, the foregoing criminal penalties, any person violating any of the provisions or failing to comply with any of the requirements of this chapter is subject to the issuance of an administrative citation pursuant to the provisions of chapter 1, article II.

(Ord. No. 2060, § 1, 6-24-25)

In addition to any fine or penalty that may be imposed pursuant to any provision of this Code, including, but not limited to, section 18-713, a short-term lodging permit for a unit may be suspended or revoked as provided in this section.

(1) Suspensions/revocations.

a. Except as otherwise provided in this subsection, if any person violates any short-term lodging permit condition two or more times in any 12-month period or any other provision of this Code, state law or federal law, two or more times in any 12-month period, and the violation relates in any way to the unit that has a short-term lodging permit, the short-term lodging permit for the unit may be suspended for a period of six months in accordance with subsection (2) of this section.

b. If a person violates section 18-703 regarding any unit that has had a short-term lodging permit suspended pursuant to subsection (2) of this section, the short-term lodging permit for the unit may be revoked in accordance with subsection (2) of this section.

b. If any person violates any short-term lodging permit condition or any other provision of this Code, state or federal law within six months of having a previously suspended short-term lodging permit reinstated for a unit, and the violation relates in any way to the unit that has the short-term lodging permit, the short-term lodging permit for the unit may be revoked in accordance with subsection (2) of this section.

c. If any person violates any short-term lodging permit condition three or more times in any 12-month period or provision of this Code, state or federal law three or more times in any 12-month period, and the violation relates in any way to the unit that has a short-term lodging permit, the short-term lodging permit for the unit may be revoked in accordance with subsection (2) of this section.

e. If any person fails to collect and remit transient occupancy tax in accordance with the requirements of this Code in regard to any unit that has a short-term lodging permit, the short-term lodging permit for the unit may be revoked in accordance with subsection (2) of this section.

f. If any person is determined to have provided false information on an application for an annual short-term lodging permit, or renewal thereof, the short-term lodging permit for the unit may be revoked in accordance with subsection (2) of this section.

(2) Permits shall be suspended or revoked only in the manner provided in this section.

a. The administrative services director shall investigate whenever he or she has reason to believe that an owner has submitted an application that contains false information or committed a violation of a permit condition, this Code, state or federal law related to a permitted unit. Such investigation may include, but is not limited to, on-site property inspections. Should the investigation reveal substantial evidence to support a finding that warrants a suspension or revocation of the short-term lodging permit, the administrative services director shall issue a written notice of intention to suspend or revoke the short-term lodging permit. The written notice shall be served on the owner in accordance with section 1-30, and shall specify the facts which, in the opinion of the administrative services director constitute substantial evidence to establish grounds for imposition of the suspension and/or revocation, and specify the proposed time the short-term lodging permit shall be suspended and/or that the short-term lodging permit shall be revoked within 30 calendar days from the date the notice is given, unless the owner files with the administrative services director, before the suspension or revocation becomes effective, a request for hearing before a hearing officer, who shall be retained by the city, and pays the fee for the hearing established by resolution of the city council. Subject to subsection (5) of this section, failure to file a timely request for a hearing and pay all applicable fees shall result in the suspension or revocation of the permit.

b. If the owner requests a hearing and pays the hearing fee, established by resolution of the city council, within the time specified in subsection (2)a. of this section, the administrative services director shall serve written notice on the owner, pursuant to section 1-30, setting forth the date, time and place for the hearing. The hearing shall be scheduled not less than 15 calendar days, nor more than 60 calendar days, from the date on which notice of the hearing is served by the administrative services director. The hearing shall be conducted according to the rules normally applicable to administrative hearings. At the hearing, the hearing officer will preside over the hearing, take evidence and then submit proposed findings and recommendations to the city manager. The city manager shall suspend or revoke the short-term lodging permit only upon a finding that a violation has been proven by a preponderance of the evidence, and that the suspension or revocation is consistent with the provisions of this section. The city manager shall render a decision within 30 calendar days of the hearing, and the decision shall be final.

(3) If a short-term lodging permit is suspended, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short-term rental of the unit during the term of the suspension. If a short-term lodging permit is revoked, it shall be the owner's responsibility to vacate any future bookings and remove all advertisements related to the short-term rental of the unit.

(4) After any suspension, the owner may reapply for reinstatement of the short-term lodging permit which shall be processed in accordance with section 18-705, provided the owner has paid the city all amounts owed the city in accordance with this chapter.

(5) The administrative services director may extend the deadlines set forth in this section if the administrative services director determines that good cause has been shown to extend the deadline.

(Ord. No. 2060, § 1, 6-24-25)

Permits and fees required by this chapter shall be in addition to any license, permit or fee required under any other chapter of this Code. The issuance of any permit pursuant to this chapter shall not relieve the owner of the obligation to comply with all other provisions of this Code including, but not limited to, those provisions pertaining to the use and occupancy of the lodging unit or the property on which it is located as well as the collection and remittance of transient occupancy taxes.

(Ord. No. 2060, § 1, 6-24-25)

(a) Any owner that has ceased operating a short-term lodging unit shall inform the administrative services director in writing of the date of the last rental, and having done such, the short-term lodging permit shall be closed.

(b) The administrative services director shall close any permit that has no short-term lodging activity for a period of one year as evidenced by remitting $0.00 on the required transient occupancy tax forms or has failed to return the transient occupancy forms. After any permit closure pursuant to this subsection, the owner may reapply for reinstatement of the short-term lodging permit which shall be processed in accordance with section 18-705.

(Ord. No. 2060, § 1, 6-24-25)