Clark County seeks to clarify, strengthen short-term rentals regulations

by · Las Vegas Review-Journal

Clark County introduced an ordinance Tuesday that seeks to clarify and strengthen some of its short-term rental regulations.

Should commissioners approve the rule amendments later this month, some enforcement duties will be transferred to the technology companies that host the home listings, such as Airbnb and Vrbo.

The agenda item arrived just over four years after Clark County first implemented short-term rental regulations and while the county is trying to fend off a lawsuit from the Greater Las Vegas Short-Term Rental Association and Airbnb. The regulations had been approved by the 2021 Legislature.

Late last year, a federal judge issued a temporary injunction that prevents the county from enforcing some of its rules while the case plays out.

Jacqueline Flores, the association’s founder, told commissioners that the county should instead focus on fixing its licensing system and remove barriers for would-be renters who are stuck in limbo after the county closed the application process.

“We’re not opposed to efficient processing for major projects or corporations. Efficiency is good governance,” she said at the meeting. “What we ask is that the same efficiency and fairness be extended to average residents who simply want to operate within the rules.”

The county said in a statement that it was required by state law to set up licensing and enforcement mechanisms and that it wants to meet the needs of legal renters and residents who are concerned with illegal short-term rentals.

“The proposed ordinance prohibits a hosting platform from processing a rental transaction for an unlicensed short-term rental, and the County anticipates that this will substantially decrease the number of unlicensed short-term rentals,” the statement added.

Airbnb and Vrbo did not respond to messages Tuesday seeking comment about the proposed ordinance.

Rule change proposals

Currently, the platforms must verify that units in unincorporated Clark County are licensed for short-term rental before they’re listed. An amendment calls for the companies to also confirm that the licenses haven’t expired.

The move would allow Clark County to implement an electronic verification system in the future.

Melissa Cassidy told commissioners she rents bedrooms of her home. She said she worries that errors in a verification system could lead to legitimate license holders being removed from the sites by mistake.

The short-term rental association reiterated that point on its website.

“Without a dependable verification process, there is a significant risk that licensed properties could be mistakenly blocked from accepting bookings or payments, resulting in canceled reservations, lost income, guest confusion and unnecessary disruption to homeowners and travelers alike,” it said.

Online listings presently have to include a business license number and occupancy limits. If amended, the rule would only apply for home listings created by the platforms.

A monthly report from the platforms that the county uses to track tax collection data would no longer be required if the ordinance passes. Instead, the platforms would need to retain the data for three years and present it upon request.

Clark County can subpoena the platforms for records to investigate illegal listings. An amendment would require the companies to provide a copy of the subpoena to the affected homeowner within seven days.

Mike Hoffman said that the court injunction had allowed an unlicensed home in his neighborhood to disrupt the peace.

“The county has a right to mitigate this issue for the residents,” he said. “We can’t let neighborhoods and residents suffer.”

Randy Gao, a real estate agent who also lists his properties for short-term rental, told commissioners that he’s not opposed to regulations as they can help weed out bad actors.

He said that the short-term rental industry helps the economy and creates jobs for cleaners and maintenance workers.

“It’ll be a win-win for everyone,” he said about attainable rules.

Commission Chair Michael Naft said that the county was only introducing the ordinance Tuesday, with no vote.

A public hearing was scheduled for Aug. 18.