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Short-term rental permits proposed in Saranac Lake

Trustees say details will be decided after public input

SARANAC LAKE — Owners of short-term rentals may soon need a permit to operate them in the village.

At a public work session Monday, Saranac Lake board members recommended the village purchase STR data tracking software, introduce a three-tiered STR permit system and implement an occupation limit.

The details of these proposals have not been decided yet — such as the role of the software in the permitting process, the price of obtaining a permit and enforcement practices. Trustees consistently said they want to gather more information before making decisions.

“We cannot control what we don’t measure,” Trustee Rich Shapiro said several times during the meeting.

Trustee Melinda Little stated her goal with the regulations several times, too: “Let’s keep it simple.”

Trustees said it is unlikely the village will limit the number of days a unit can be rented in a year, conduct inspections of rental properties or limit daytime occupancy of STRs.

None of the proposed plans the board discussed are set in stone yet. Little said public input will influence the board’s eventual decisions.

Timeline and public comment

At the board’s next meeting on Monday, it is set to vote on purchasing the services of Rentalscape, an STR data monitoring software. It will then schedule a public input session for Wednesday, April 28 at 5 p.m. at the Harrietstown Town Hall.

After this first session, the village is expected to draft the outline of an ordinance regulating STRs and the process for obtaining an STR permit. It would then hold another public input hearing. The final ordinance is expected to be voted on by the village board on May 24.

During this period, Little said people can always comment at regular board meetings or can write or email their comments to the village.

Reasons for regulation

Reasons village officials have stated for regulating STRs are a shortage of affordable long-term rental units in town as they shift to short term, aesthetics and “balancing neighborhoods.”

“The sense of community that we have here in Saranac Lake is extraordinary,” Little said, adding that she does not want to lose it.

STR owners are anxious to have their voices heard by the village. They say they rely on the income brought in by renting out their homes, parts of their homes or second homes, and that it allows for more tourists who spend money in town.

Currently, the village has identified around 125 short-term rental units on 82 individual properties. Last year it counted 65 to 68 individual properties on rental websites.

Shapiro said in Essex County bed tax revenue from STRs rose by 50% in the last year. At the same time, bed tax revenue from hotels is down.

He said some villagers are concerned to see more out-of-towners buying properties just to rent them as STRs.

“There’s a lot of concern in the village about affordable housing, and short-term rental is one of the pieces that may … affect the availability of housing stock for people to rent on a long-term basis,” Shapiro said.

He said he believes STRs do affect long-term rentals but that there is currently not data to back that up.

Rentalscape

The board plans to purchase the software Rentalscape to monitor rentals in the village. This software scans rental sites such as Airbnb, VRBO or Adirondack by Owner every day and identifies the properties by what platform they are listed on, addresses, types of structure, contact information for the owner and whether the owner also occupies the property.

The software is where property owners would file applications to get STR permits. It would also compare listings with the village’s yet-to-be-approved rules and could identify violations.

This software would cost $7,500 in the first year, including the price of setting it up. Following years would cost around $4,700, depending on the number of STR properties.

Permit prices

Board members agreed that charging a fee for STR permits is needed to fund the software.

Village Manager John Sweeney said this should be done to “break even” on the administrative cost and shouldn’t be used as a revenue base.

“I think having it be affordable is important,” Trustee Kelly Brunette said. If the price is too high, she said, people won’t get a permit and will risk a fee.

Shapiro proposed a sliding scale for the fee — with the price increasing as the number of bedrooms increases. The board ultimately agreed to recommend this but has not set prices for this scale yet.

Shapiro said if someone is renting out an extra bedroom in their house to pay for their taxes and heating bill, they should pay a lower price than someone renting out three or four bedrooms.

If a property is out of compliance or operating as an STR without a permit, the owner would be given notice twice, Little said. What happens next is yet to be determined.

Occupancy limits

The board is considering implementing an occupancy of two guests per bedroom, with two extra guests if pullout couches or cots are included.

Shapiro asked if the village should also limit daytime guests — double the occupancy limit — like Lake Placid does.

“I don’t have an appetite for it,” Little said.

Shapiro said this would limit the ability to hold a party.

“Where do we draw the line?” Brunette asked. “The term ‘party’ can be loose.”

She said people travel here to gather with family.

Village Community Development Director Jamie Konkoski said Lake Placid limits daytime occupancy because of the types of events it hosts. Little said that is not an issue in Saranac Lake.

Shapiro asked if the village should limit the number of days a property can be rented out for in a year.

“I think that’s a real hardship for somebody that’s using the short-term rental to rent out a room in order to make their rent or whatever,” Little said. “I don’t know that we should adopt limitations like that.”

Parking

The board agreed renters should draw up a parking plan to give to guests and submit it to the village to obtain a permit.

This is the most subjective part of the permit process and the village will need to decide if it will review the parking plans or have Rentalscape take care of that.

The goal of this is to limit on-street parking. Parking on a property’s driveway would not be a problem.

Trustees are considering exemptions for STRs in downtown districts because there are municipal overnight parking lots: off Dorsey Street, behind the police station and on Broadway behind the Adult Center. Owners would be required to tell renters where the public lots are.

Shapiro said Lake Placid’s limit of one on-street parking spot per bedroom is “reasonable.”

“(It) reduces the likelihood of a party house,” he said.

Contact

Trustees agreed that STR owners should be required to give the village an emergency contact number. This would not have to be the owner, they said; it could be a property manager.

They also agreed the contact would have to live within a 30-minute drive of the rental. Shapiro said this range will cover all of the Tri-Lakes area.

Rules

Konkoski said some municipalities require inspections of rental properties. This is not feasible for Saranac Lake, she said, so it will only require renters to sign an affidavit saying they follow building codes and other health and safety standards.

The checklist of these standards will be decided later.

Board members also agreed renters should sign an agreement to comply with what Little called “good community rules.”

These rules would include quiet hours between 10 p.m. and 7 a.m., garbage storage in a discreet location with weekly pick-up, a house number visible from the street, limiting two people per bedroom and making rules visible to renters.

Konkoski suggested adding rules about leashing dogs and cleaning up their poop.

Bed tax

The permit process would require renters to register with Franklin or Essex County to ensure the counties collect the bed tax revenue generated from the STRs.

Registration in Franklin County is very low, Konkoski said, but many STR owners who pay the bed tax may not be registered with the county. Shapiro said this requirement will drive up registration because anyone renting out a property in Saranac Lake will be required to register with the county.

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