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Council directs staff to pursue outsourced short‑term rental program with phased TOT approach
Summary
After reviewing three options for regulating short‑term rentals, Council favored the outsourced consultant model (option two) to register and enforce listings; staff reported Granicus data showing about 52 short‑term rental units in the city with an estimated $75,000–$109,000 in annual transient‑occupancy tax (10% TOT) potential. Council discussed phasing and lead‑in timing for fee and TOT implementation.
Beaumont — The City Council on May 5 directed staff to pursue an outsourced short‑term rental (STR) program pilot and return with a draft ordinance and procurement for a consultant to register and enforce STRs.
Staff outlined three models: (1) a city‑run program (~$31,000/year) that would give the city full control over registration, enforcement and TOT collection; (2) a fully outsourced consultant model (estimated $16,000 in year one including a TOT module, $11,000 without the TOT module) that reduces staff workload while providing platform monitoring; and (3) a hybrid approach relying on a platform agreement (for example, with Airbnb) to collect TOT with minimal cost but limited data and coverage.
Using market‑monitoring data from Granicus, staff estimated about 52 active short‑term rental units in Beaumont, generating roughly $1.09 million in gross bookings annually and producing an estimated $75,000–$109,000 per year in TOT at a 10% rate depending on occupancy. Council members debated whether to begin TOT collection immediately or allow a short lead‑in to notify owners. Several members supported a phased approach to allow registration and public notice; others stressed that earlier collection would better position Beaumont to capture event‑driven demand (noting the 2028 Olympics as an upcoming regional demand driver).
After discussion council expressed a preference for option two (outsourced consultant) with a phased implementation that could include a short lead‑in (suggestions ranged from 90 days up to 6 months) before active TOT collection; staff said the TOT module increases year‑one consultant cost by about $5,000. Council asked staff to return with a draft ordinance, procurement approach and recommendations on an effective date for any TOT collection.
What happens next: staff will develop and return a draft ordinance and contract scope for council consideration. The council indicated interest in a 90‑ to 180‑day lead time after ordinance adoption before enforcement and TOT collection begin, but left final timing to the ordinance discussion and adoption process.
