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Long-Term Solutions to Short-Term Rentals <br /> o Review of websites, interviews, testimonials, and other materials produced by <br /> companies serving the STR and hospitality markets or from contractors with <br /> products for cities managing STRs <br /> o Review of academic papers on STRs and their history <br /> o Review of non-governmental agency white papers on STRs <br /> • In-person interviews of city personnel <br /> • Review of: <br /> o City meeting minutes and recordings of residents' concerns <br /> o Various cities' STR complaint processes <br /> o City ordinances as well as state statutes <br /> o California Coastal Commission guidance <br /> o Third-party STR surveillance software used by cities <br /> o Various cities' STR complaints from June 2022 through June 2024 <br /> o Relevant legal rulings <br /> • Analysis of TOT <br /> INVESTIGATION <br /> The Grand Jury learned that in most cases, STR operators are required to obtain a business <br /> license, register with their city for a permit, submit reports, pass an inspection, and pay TOT. <br /> This is a city-level tax levied on any temporary lodging that is occupied for fewer than thirty <br /> days. All hotels, motels, and bed and breakfasts must remit this tax. Short-term rentals permitting <br /> and other policies vary by city. A short-term rental's TOT is paid either monthly, quarterly, or <br /> annually. Most cities allowing STRs require a twenty-four-hour, in-person contact to address <br /> complaints, within either thirty or sixty minutes. <br /> Short-term rental operators often use one of the numerous OBAs, such as VRBO (from the <br /> phrase Vacation Rentals by Owner), Airbnb, Zumper, and HomeAway. In addition, some <br /> operators may advertise via direct booking sites (a website for their specific property) or through <br /> local rental agents. Multiple OBAs mean that a unique property may have as many as a dozen <br /> listings. <br /> 2024-2025 Orange County Grand Jury Page 6 <br />