Post by High Priestess on May 27, 2016 21:37:27 GMT
Barry shared on Best n' Baltimore
www.airbnb.com/groups/content/content-90551
Heads UP: Compliance with City Laws
Hello there,
I just recently became a AirBnB host despite being a professional innkeeper for over 7 years.
I am president of the Better Baltimore Bed & Breakfasts and I am trying to reach out to the local AirBnB folks.
I
know from my friend, the new director of the BDC (Baltimore Development
Corporation) that they are creating a plan to crack down on illegal bed
and breakfasts and other accommodations HARD. Having been completely
legal for the past 7 years, I want to help those that want it to get
legal before they get into deep trouble. Let me know if you want more
info. I am going to be trying to work with Bill Cole to compile an exact list of what needs to be done to be completely legal, and where to find the information.
Thanks!
20 comments
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Jeannette
Jeannette2 years ago
According to my councilman, AirBNB is completely legal in Baltimore.
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Barry
Barry2 years ago
Jeanette, as long as you registered your business correctly with the city, you have been inspected by the fire Marshall and you collect state sales tax and city lodging tax and pay it to the appropriate bodies, then you are fine. Not many have done any of this. Not registering with the city is a $500 fine. Airbnb is legal, it's the individual listings that are not if they don't follow all that is required by their local ordinances, zoning and laws.
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Jeannette
Jeannette2 years ago
Does this apply to lodgings of under 6 bedrooms? Can you point to the appropriate statute?
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Barry
Barry2 years ago
It's been 7 years ago that our bed and breakfast consultant helped us navigate the craziness that is the requirements of having a bed and breakfast in baltimore. I don't know exact statutes. I do know another innkeeper was asked for back taxes he did not pay because he was told by someone that if he had under a certain number of "sleeping spaces", not rooms, but sleeping spaces is what the law says, then he did not need to collect taxes. He had three rooms so he thought he was fine as each had one queen bed. The city said that further clarification of the law states that a sleeping space equals on in a twin bed, but a queen or king counts as 2 sleeping spaces each. Thus he had 6 sleeping spaces, more than the minimum. Thankfully he had the name of the person in the city that gave him the wrong info and therefore did not have to then pay taxes from the past but only taxes from that point forward.
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Jeannette
Jeannette2 years ago
Thanks. I imagine then we need to see the relevant statutes to see who falls above the sleeping spaces rules and whether skipping the "breakfast" part negates this.
I'm seeing this online:
(City Code, 1976/83, art. 30, §13.0-2-6a(1st - 3rd sens.).) (Ord. 99-547.)
§ 1-116. Bed and breakfast home.
“Bed and breakfast home” means a single-family dwelling:
(1) that is owner-occupied;
(2) that is used primarily as a home, but also to provide lodging;
(3) in which no more than 3 guest rooms are available to transient visitors; and
(4) in which breakfast is the only meal served and is included in the charge for the room.
law.resource.org/pub/us/code/md/baltimore.code.article.00.03.html
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Jeannette
Jeannette2 years ago
It would seem that AirBNB hosts who live on site are basically "homestay" establishments, not B&Bs in any real sense, see:
www.bandbsearch.com/faq_(email hidden)ml
FAQ: What is a Bed and Breakfast?
National Definitions & Distinctions
(according to the Professional Association of Innkeepers International, PAII)
The following definitions attempt to codify what is presently being used in the field. They are only approximations and will vary by region or individual innkeeper.
HOMESTAY, HOST HOME - This type of establishment is an owner-occupied private home where the business of paying guests is secondary to its use as a private residence. The hosts are primarily interested in meeting new people and making some additional monies while continuing their present employment or retirement. Frequently located in residential areas, zoning or other government restrictions may prevent the use of signs, public advertising, etc. Usually between 1-3 rooms, these homes are often a member of, and usually inspected by a reservation service organization (RSO) but are rarely required to be licensed or inspected by local applicable governmental agencies. Breakfast is the only meal served. In some instances, it may be an unhosted apartment where breakfast is self-serve.
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Barry
Barry2 years ago
The biggest issue is that the city itself has few clearly defined rules on what/how our industry should operate and basically they pick and choose to best fit their own needs and to try to make the most money.
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Jeannette
Jeannette2 years ago
I would think that your operation is a B&B and pretty much everyone else here is a homestay, and that we could get our councilman to clarify that if the city decided to muck around with homestays.
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Barry
Barry2 years ago
I know no matter what, if you have accommodations for people that you charge for, you need to register with the city. That is what my former city council person told us.
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Barry
Barry2 years ago
I also do not know that zoning does not make a distinction between homestays, B&Bs, etc.
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Jeannette
Jeannette2 years ago
Homestays are so akin to homesharing (having housemates, in an owner occupied residence with a shared kitchen) that they clearly don't fall under this rubric in my opinion.
I also property manage, and you need to register with the city if you have arms-length (not owner occupied) standalone properties or in-home units with their own kitchens.
But not if you are renting a room and sharing a kitchen -- as long as 4 adults or fewer are in the house, you are fine with sharing your space (and sharing the expenses thereof) with whomever you please without any need to "register with the city," which is outrageously intrusive.
If one more branch of Maryland government decides to meddle in every last entrepreneurial effort and violate the right of owner-occupied homes to be used for homestays without city regulation, I swear I will go to Delaware and that is not an idle threat. That's if I don't get an attorney first and fight this.
We do of course pay income tax on earnings.
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Jeannette
Jeannette2 years ago
Can you share why the head of the Baltimore "Development" Corporation wants more regulation that is in effect anti-development? This sounds like a juicy media story. Our micro homestays are *pumping huge $$$* into our neighborhood economies.
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Russell
Russell2 years ago
Hello Jeanette - thanks for all your information regarding this matter. I would suppose local hotels and established local BnB's would classify the homestay business as unregulated competition. I do not think they are to happy about the success of organizations such as Airbnb etc. Just a thought.
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Barry
Barry2 years ago
This is not abut competition. This is about my wanting to make sure people do not get into trouble by not realizing what is required because the city does not make it easy to figure out. Why is it anytime someone brings up what is required it isimmediately because we do not want competition? That is absurd. We are all in the same industry: HOSPITALITY. And what can be more hospitable than trying to help out your peers?
Jeannette
Jeannette2 years ago
Yes -- precisely, Russell.
It's just like the way established taxi companies are attempting to fight Lyft and Uber, despite vast customer preference toward the latter two.
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Barry
Barry2 years ago
AGAIN: it is not about competition. It is about trying to help peers not get into trouble and get a $500 fine to start with for not registering with the city, and possibly a lot more. I offer a service for folks that want more than a home stay. There are plenty of people that want what you offer as well. There is room for everyone in the shared economy people.
Russell
Russell2 years ago
Welcome to the new shared economy... lol.
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Barry
Barry2 years ago
I only offer help and I get called out for trying to squash competition. I know that f those i directly contacted in my area two had no idea what was required. Glad I could help them. If you are set up correctly, that is awesome, then just ignore my post. Why do you need to come after me for trying to help those who did not do so?
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Jeannette
Jeannette2 years ago
Please provide the relevant parts of city code and whether homestays, especially if they opt out of serving breakfast, in any way shape or form are being targeted by the city, and most likely bona fide inns and hotels as well, for absurd, government "registration" and "fines" and Fire Marshal visits.
That would be helpful. I hope you are not approaching AirB&B hosts in your neighborhood and on this board calling for them (without having the code and the facts at your disposal) to register with the city,
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Barry
Barry2 years ago
I m not here to tell everyone where they are wrong, just to tell them to make sure they checked all the needed stuff out. That is all, Don't takeout your anger on me. All of you can do what you want.
Jeannette
Jeannette2 years ago
(continued)
I highly doubt the "city" is behind this, given that the Baltimore "Development" Corporation is probably hearing from inns and hotels to "do something" about AirBNB, and the inns and hotels seem to be the driving force to squash competition. It's completely transparent.
It's *exactly* like many another anti-competitive move (think McDonald's and the minimum wage argument) where the big players want to yoke the little micro businesses into a one-size-fits-all arrangement and drive them out of business.
It doesn't help the traveler at all, only the big lodging providers.
Econ 101.
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Barry
Barry2 years ago
Actually visit Baltimore is looking into i mostly as is city zoning. I follow the laws. My city council rep told me that all accommodations need to be registered. Visit Baltimore wants to get the city lodging tax from everyone. AirBnB is working toward ensuring all listings follow all local laws, just as they have done in San Francisco and Portland. Don't hate me because you do not like it.
Barry
Barry2 years ago
Those of you that want to know more, let me know..otherwise I am done.
Like 2 replies
Deb
Deb2 years ago
I looked at the Baltimore City regulations and came up with this conclusion - please let me know if I am correct in my assumptions. If you live at the house and do not rent to more than 2 "roomers", then you do not need to apply for any permits and/or pay any "hotelier fees". But you must pay taxes on the income.
Jesse
Jesse2 years ago
Thanks Deb. From my research I came to the same conclusion. And Barry I'm not sure anyone was angry with you, but maybe it felt like it since you were the "messenger".
Russell
Russell2 years ago
Thanks Barry, Your comments are very helpful. Something for us all to look into. I am not located in Baltimore city so I need to check with Baltimore County. Not meaning to attack you at all. I think people just like to know the facts and the sources for your information so that we can educate ourselves. I am sure that you are aware that there is a backlash out there to target Airbnb type organizations. I think that is just a point we were trying to make. Don't take everything so personal. I know you are trying to be helpful. I just started hosting with Airbnb and I have a lot of questions that are still open as far as host liabilities.