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Short-Term Residential Housing

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Short-Term Residential Housing

October 16, 2019

Short-term housing options have become increasingly popular as an alternative to staying in hotels or motels. Effective January 1, 2020, the California Workers’ Compensation Uniform Statistical Reporting Plan—1995 (USRP) specifically addresses how short-term housing operations are classified in addition to combining the separate phraseologies for Classifications 9050(1), Hotels, and 9050(2), Motels.

Classification 9050, Hotels, Motels or Short-Term Residential Housing, specifies that it applies to the operation of hotels, motels or short-term residential housing and defines short-term residential housing, such as vacation rentals and timeshare properties, as housing units that are rented for not more than 30 consecutive days. Classification 9050 also directs that the operation of residential housing where more than 75 percent of units are rented for longer than 30 consecutive days be assigned to the applicable Property Management/Operation Industry Group classification.

For example, a 20-unit apartment building where 4 units are used as short-term vacation rentals and 16 units are leased on an annual basis is classified as 9011(1)/8740(1), Apartment or Condominium Complex Operation – N.O.C., as 80 percent of the units are rented for more than 30 consecutive days.

Similar instructions regarding classifying short-term residential housing operations were also added to Part 3, Standard Classification System, Section IV, Special Industry Classification Procedures, Rule 9, Property Management/Operation, and to Classification 9066, Homeowners Associations and Housing Cooperatives.

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