Proposed ordinance would require permits, business licenses and lodging taxes for Airbnb-style rentals.
Fernley is moving toward establishing its first specific regulations for short-term rentals, including homes and rooms advertised through services such as Airbnb and Vrbo.
The Fernley City Council conducted the first reading, Sept. 2, of Bill 383, an ordinance that would add short-term rentals to the city’s Development Code and establish standards governing where and how they may operate.
Under the proposed ordinance, a short-term rental would be defined as a residential dwelling, portion of a dwelling, bedroom or accessory dwelling unit rented to a guest or group of guests for fewer than 30 consecutive days.
City staff said the changes are intended to provide a framework for regulating a type of lodging that is already occurring within Fernley.
Short-term rentals would be treated as a conditional use, meaning an owner would need to obtain a Conditional Use Permit reviewed by the Fernley Planning Commission.The City Council would hear an appeal of a Planning Commission decision.
Owners would also be required to obtain a city business license and pay transient lodging taxes while operating the rental.
The proposed regulations establish standards for occupancy, parking, trash service and fire safety.
The Planning Commission amended staff’s original proposal to allow up to three people per legal bedroom, plus two additional people per rental unit, and to allow parking along the street frontage within the perimeter of the short-term rental. The commission voted 7-0 Aug. 12 to recommend approval of the ordinance with those changes.
Weekly trash collection would be required, and functioning smoke detectors would have to meet current fire-code requirements. The proposed regulations would apply throughout the city.
Special events would not be permitted at short-term rentals. The ordinance lists weddings, receptions, anniversaries, private parties, fundraisers and business seminars as examples of prohibited special events.
Short-term rentals could operate in permanent residential dwellings, including accessory dwelling units. Recreational vehicles, trailers and other structures not classified as permanent residential dwellings could not be used as short-term rentals.
The city could also deny a short-term rental or impose additional conditions based on factors including inadequate parking or substantial negative impacts on surrounding properties.
The issue has previously come before the Planning Commission as city staff worked through how to regulate an industry that has largely operated without specific local standards.
At previous Planning Commission discussions, staff said the city did not have an exact count of short-term rentals operating in Fernley because they were not specifically regulated. A search of Airbnb at the time showed roughly 10 listings.
Staff also cited complaints associated with short-term rentals during Burning Man, including one property where tents had reportedly been set up in the front yard and another involving a live band.
Bill 383 received only its first reading at the Sept. 2 City Council meeting. Associate Planner Lisa Warner told council members she was available to answer questions, but there was no substantive council discussion of the ordinance before the meeting moved to the next item.
The ordinance would have to return to the council before becoming law.
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