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PAGE 2 OF 7 <br />SUBJECT: DISCUSS AND PROVIDE DIRECTION REGARDING POTENTIAL REGULATIONS <br />FOR SHORT-TERM RENTALS (STR) <br />SEPTEMBER 27, 2018 <br /> <br />S:\COUNCIL REPORTS\2018\10-02-18\Short Term Rentals\Staff Report.docx <br />BACKGROUND (Cont’d): <br /> <br /> Source: Inside Airbnb (red entire homes/apartments, green private/shared room) <br /> <br />Given the wide adoption of STR platforms and the subsequent proliferation of STRs within Los <br />Gatos, it is timely for the Town Council to discuss the Town’s current STR approach, review <br />policy options, and provide direction on potential STR regulations. <br /> <br />DISCUSSION: <br /> <br />Existing Town STR Approach <br /> <br />The current Town of Los Gatos Zoning Ordinance is silent on the subject of short-term rentals as <br />a permitted use in any of the Town’s zones, which by default prohibits them from occurring <br />within the Town’s jurisdiction. Town Code Sec. 25.30.010 defines a hotel as any structure <br />occupied by transients for dwelling, lodging, or sleeping purpose. Town Code Sec. 29.10.020 <br />further defines a hotel/motel as a building where lodging, with or without meals, is provided for <br />compensation and where occupancy is generally limited to no more than thirty (30) days. A <br />hotel is not a permitted use in the residential zones, therefore prohibiting homeowners from <br />renting out a house for 30 days or less. A transient is defined as any person who exercises <br />occupancy for a period of thirty (30) consecutive calendar days or less. In addition, Code Sec. <br />29.10.320 (b) (14) also specifically prohibits rentals for durations of less than thirty (30) days, <br />including short-term rentals, in accessory dwelling units. The Town enforces these Code <br />