Division 17.40 — RESIDENTIAL RENTALS

Sections

17.40.010 Purpose and intent 17.40.020 Rented room 17.40.030 Short-term rental 17.40.040 Business license tax 17.40.050 Enforcement

A. Purpose. The purpose of this division is to establish regulations governing the rental of residential property within the city.

B. Intent. By enacting this division 17.40, the city council intends to:

1. Provide a community benefit by allowing alternative forms of lodging, allowing residents to participate in the sharing economy, and allowing residents an opportunity for additional source of income.

2. Allow the renting of homes, apartments, or rooms for periods of 30 days or more.

3. Allow short term renting of single-family dwelling units and rooms in single-family dwelling units for less than 30 consecutive days, while still preserving the residential character of neighborhoods, and preventing short-term rental activities from becoming a nuisance or a threat to public health, safety or welfare;

4. Establish standards and a permit requirement for short-term rentals; and

5. Prohibit the short-term rental of accessory dwelling units, multi-family dwelling units, and units developed under division 17.54 to preserve them for long-term housing. (Ord. 742 N.S., 05/2018, Ord. 772 N.S., 03/2024)

A. Applicability and Purpose. This section 17.40.020 applies to the rental of a room or rooms in a residential property for a period of 30 consecutive days or longer and its purpose is to facilitate shared housing that aligns with the City's Housing Element program on shared housing, ensuring rented rooms are used as primary residences.

B. Definitions. In this section:

Owner means a property owner of a single-family or multi-family dwelling, as shown in the records of the Alameda County Assessor’s Office

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Rented room means a room or any combination of rooms that is/are rented by an owner of a single-family dwelling or multi-family dwelling that meet the requirements of Section 17.40.020.C.2 and 17.40.020.D. (Ord. 774 N.S., 09/2024)

C. General.

1. The owner of a single-family or multi-family dwelling unit in any zoning district is permitted to rent multiple rooms in such dwelling unit, subject to the requirements of this section. With the written consent of the property owner, a tenant has the same right.

2. Each Rented Room must meet the following requirements:

   • a. A Rented Room must include at least one bedroom.

   • b. The tenant and the Owner, or the subtenant and tenant with Owner’s consent, must enter into a form of written rental agreement.

   • c. The rental period for a Rental Room is a minimum of 30 consecutive days.

   • d. The tenant of the Rented Room must have the common use of the primary kitchen facilities, with no temporary or permanent cooking facilities in the Rented Room.

   • e. The tenant of a Rented Room must have access to either a shared or separate bathroom.

   • f. The maximum occupancy of any bedroom in a Rented Room is two people. g. The Rented must be occupied by the tenant as a primary residence, defined as that place where a person has his or her true, fixed, and permanent home and to which that individual has the intention of returning to, whenever absent.

   • h. The Owner is required to get a business license as provided in 17.40.040.

D. Safety. The Owner is responsible for assuring that any Rented Room meets all Building Code requirements. The Owner must either (at the Owner's discretion):

1. Request that the City inspect the property to assure that the primary residence and the Rented Room meet Building Codes, consist of legally existing rooms eligible for use as a bedroom and habitable spaces. The Owner shall pay an inspection fee in the amount established by City Council resolution; or

2. Submit to the City a signed declaration in a form prepared by the city to warrant and represent that the Rented Room meets all Building Code requirements and consist of legally existing rooms eligible for use as a bedroom and habitable spaces. The declaration shall be kept in the property file at the City. (Ord. 774 N.S., 09/2024)

A. Applicability. This section 17.40.030 applies to short term rentals of less than 30 consecutive days. The short-term rental must be located in a single-family dwelling unit that is the primary residence of the property owner or long-term tenant. It may not be located in an accessory dwelling unit (permitted or unintended), a multi-family dwelling unit, or a dwelling unit created under division 17.54. The short-term rental may be hosted or non-hosted. (Ord. 772 N.S., 03/2024)

B. Definitions. In this section:

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Advertising platform means any online site that provides a means for the host to advertise or otherwise offer for rent a short-term rental.

Host or hosted means the primary occupant of the dwelling is present during the short-term rental. Non-hosted means the primary occupant is not present during the short-term rental.

Operate means the operation of a short-term rental, and includes the acts of establishing, maintaining, or listing for rent a short-term rental with an advertising platform.

Primary Occupant means an occupant who is either the owner of the dwelling or a longterm tenant in the dwelling with a month-to-month lease or lease of a longer duration.

Short-term rental means the use of a dwelling unit, or portion of it, for a rental of less than 30 consecutive days.

Unintended accessory dwelling unit means a living space which meets the definition of an accessory dwelling unit, but which is not approved for habitation as an independent dwelling unit under the provisions of division 17.38. An unintended accessory dwelling unit may include a guest cottage, pool house, or rent-free unit for an au pair, domestic employee or family member.

C. Short-Term Rental Permit; Permit Issuance. No person may operate a short-term rental without first obtaining a short-term rental permit. A short-term rental permit may be approved by the Director, provided that the Director determines the applicant has met the following requirements:

1. Application. The applicant must complete an application on a form provided by the city, accompanied by a fee established by city council resolution.

2. Property owner consent. If the applicant is a tenant, he or she must demonstrate written approval of the property owner to allow short-term rentals.

3. Insurance. The applicant must provide evidence of, and maintain, general liability insurance of at least $1,000,000 during the term of the short-term rental permit that covers the applicant’s short-term rental operations.

4. Contact information. The applicant must provide current contact information to the city, and information regarding the advertising platform(s) to be used.

5. Safety. The dwelling or rooms serving as a short-term rental must have a smoke detector, carbon monoxide detector, fire extinguisher, and adequate egress, all as determined by the chief building official. The applicant must either (at the applicant’s discretion):

a. Request that the city inspect the property to assure that the primary residence and the rented rooms meet building codes, consist of legally existing rooms eligible for use as a

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bedroom and habitable spaces. The property owner shall pay a nominal inspection fee in the amount established by city council resolution; or

b. Submit to the city a signed safety declaration in a form prepared by the Director, to be kept in the property file at the city.

D. Appeals. Any interested party may appeal any decision by the Director to approve or deny a short-term rental permit pursuant to division 17.78 of the Piedmont City Code. No permit shall be deemed issued or effective until the appeal period set forth in division 17.78 has expired.

E. Permit Term and Renewal. A short-term rental permit is valid until December 31 of the year it is issued, unless suspended or revoked. The permittee may renew the permit annually, by submitting a renewal application and fee before the expiration of the permit.

F. Operating standards. A short-term rental is allowed only if it conforms to these standards:

1. Permit. The short-term rental is operated under a short-term rental permit issued by the city in accordance with Section 17.40.030.

2. 2-night minimum. The short-term rental must be rented for a minimum of two consecutive nights.

3. 60 days maximum. The short-term rental may not be rented more than 60 days in a calendar year.

4. No Events. The short-term rental may be used for dwelling, sleeping or lodging purposes, but may not be rented for any other commercial purpose, including temporary events or gatherings.

5. Guest Safety. The short-term rental permittee must provide the following materials electronically to any guests before arrival and make available printed materials on-site for the guest with the following information:

• a. A diagram of exits, fire extinguisher locations, and fire and police contact numbers;

• b. The short-term rental permittee’s contact information;

• c. The city’s noise regulations (sections 12.8 – 12.12);

• d. The city’s smoking ordinance (chapter 12, article II);

• e. The city’s garbage and recycling guidelines (available on the city’s website, or a print copy of the residential services guide: recycling, organics and garbage ).

6. Current Information. The short-term rental permittee shall, during the term of the permit, promptly inform the Director regarding any changes regarding information provided in the

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application, including contact information and information regarding advertising platforms used by the permittee to advertise the short-term rental. (Ord. 742 N.S., 05/2018; Ord. 747 N.S., 02/2020)

A person renting a room or multiple rooms or operating a short-term rental is considered to have rental property and must pay an annual business license tax under City Code chapter 10. (Ord. 742 N.S., 05/2018)

The city may enforce this division by any means permitted by law, including but not limited to those set forth in chapter 1 (General Provisions), article 2 (Code Enforcement) of this code, or under division 17.80, Enforcement. The city council may establish fines by resolution. (Ord. 742 N.S., 05/2018)