Riverdale Park proposes updates to rental licensing: short-term rentals, removing exempt-tenant loophole, and prorated fees

Riverdale Park staff proposed a set of amendments to Chapter 55 (rental licensing and inspections) during the Feb. 23 work session intended to modernize town code and strengthen tenant safety.

Director Shelton said the current program was designed for traditional long‑term rentals and that staff have observed an increase in short‑term rentals (e.g., Airbnb). The proposal would require short‑term rental applicants to meet county licensing standards first and then obtain town confirmation, with the town retaining authority to add any additional local requirements.

Shelton also recommended removing the 'exempt tenant' provision, which previously excluded relatives (grandparents, parents, siblings, children, etc.) from licensing and inspection. Staff said the exemption had been used in practice to avoid interior inspections by claiming family relationships; investigators found instances of properties being effectively converted to multiple units with fire hazards. Staff emphasized their goal is safety: ensuring any occupied unit that functions as a rental can be inspected.

To address fairness in fees, staff proposed a prorated license-fee schedule so new applicants late in the fiscal year would not pay a full annual fee and then pay again the next July. The suggested proration example: 100% in quarter 1, 75% in quarter 2, 50% in quarter 3, and 25% in quarter 4.

Council members asked clarifying questions about scope (owner-occupied exceptions, single‑room rentals, enforcement methods). Staff clarified owner‑occupied units where the owner resides are not subject to licensing; the exemption targeted non‑owner‑occupied units. Staff described enforcement methods (monitoring online listings, signage, resident tips) and said council could consider waiving fees for previously exempt tenants while still requiring inspection for safety.