St. Pete explores short-term rental ‘super fines’

Enforcing St. Petersburg’s short-term rental ordinance remains a challenging, typically reactive endeavor; however, repeat offenders could now face a $10,000 fine.

City council members discussed issuing “super fines” for short-term rental and other code violations Thursday morning at a Public Services and Infrastructure Committee meeting. Some expressed dismay when Joe Waugh, code compliance assistance director, recommended setting a $200 daily fee.

However, the state-mandated daily maximum is $1,000, and the Code Enforcement Board could issue a $10,000 penalty per hearing. Code compliance officials must first prove that someone has violated a longstanding city ordinance prohibiting owners from renting a home for less than 30 days more than three times per year.

“At the click of a button, their listing goes from a five-day minimum to a 30-day minimum,” Waugh said. “We’ve actually had individuals at our hearings who have sat in the audience and changed their listing right then and there and walk up to the podium to give their testimony and say, ‘Hey, I’m at 30 days right now, I just changed it.'”

Joe Waugh, code compliance assistance director, said the owner of this short-term rental removed exterior photos from listings after receiving a violation notice. Screengrab, city documents.

City officials are adapting to a lucrative, sophisticated and nuanced industry. St. Petersburg implemented its short-term rental ordinance in 2001 as a way for residents to supplement their income during heavily attended events while maintaining neighborhood integrity.

Airbnb began with an air mattress on a San Francisco apartment floor in 2008. The short-term rental platform now boasts a global network with nearly eight million properties generating over $250 billion in annual revenue.

Multiple competitors have since expanded the industry, which attracts investors looking to maximize real estate profits. A recent study concluded that Tampa Bay is the nation’s best short-term rental investment market.

City officials also planned to discuss creating a short-term rental registry. The governor recently vetoed a bill that would have allowed the measure.

“Right now, our ordinance is grandfathered,” Waugh said. “And if we were to alter our ordinance to be more restrictive, we could lose that grandfather status.”

He noted that penalties must outweigh the financial benefits of violating the local law. Waugh explained that homeowners and investment firms now hide reviews that code enforcement uses as evidence in hearings.

He said short-term rental owners also remove exterior photos from platforms after receiving a violation notice. The city does not proactively identify those properties.

“It’s just a lot of staff time and resources,” Waugh said. “These listings can change on a day-to-day basis.”

The City of Miami Beach implemented short-term rental fines that ranged from $20,000 to $100,000 after the fifth offense. However, an appellate court ruled that Florida law preempted those penalties.

The state allows cities with over 50,000 people to issue up to $15,000 fines per violation “if the code enforcement board or special magistrate finds the violation to be irreparable and or irreversible in nature.” Assistant city attorney Heather Judd said daily fines can accrue in the time between receiving a notice and attending a hearing, an “enhanced deterrent factor.”

“I think that really does speak to short-term rentals because people will continue to book them for the next 60 days, wanting to get as much money as possible,” said Councilmember Richie Floyd. “And then it’s so easy to come into compliance – they can just change it right there in the meeting.”

A social media post highlights how short-term rental owners try to avoid detection. Screengrab, city documents.

Floyd wants code enforcement officials to discern potential proactive solutions. His colleagues on the committee agreed.

Councilmember Copley Gerdes stressed that the Legislature should hold platforms like Airbnb and Vrbo accountable. He noted that the sites “collecting data left and right” and could easily ensure listings comply with local laws.

Most local beach communities disallow any short-term rentals. Gerdes said the platforms could prohibit properties in those areas and homes in St. Petersburg from listing for a fourth time in a year.

Gerdes said he and county officials urged Sen. Nick DiCeglie to introduce related legislation in 2023. “We should be able to tell Airbnb and Vrbo to ‘turn it off,’” Gerdes said. “It’s a really easy button. We wouldn’t even need to do this if all they had to do was that.”

The committee approved codifying the new violation penalties. The initiative will now head to the full city council for a vote.