Short-term Rentals Get Short Shrift

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Short-term rentals such as Airbnb are on their way to becoming obsolete in Laguna Beach, according to action taken Wednesday by the city’s Planning Commission.

The commission upheld the City Council’s recommendation to prohibit short-term rentals in non-commercial areas. Rentals of more than 30 days are still allowed. The commission’s proposed ordinance prohibiting short-term rentals still requires City Council approval, tentatively set for review April 21.

Just 36 properties with 81 units already are legally permitted for short-term housing and their permits will remain valid, a city report says, though the city imposed a moratorium forbidding more permits last year.

Despite the city’s crackdown on short-term rentals, Airbnb currently lists more than 300 units available this weekend in Laguna Beach. Cities around the country are grappling with complaints and concerns about the impact of the short-term lodging phenomenon.

Short-term lodging is a commercial use inappropriate for residential neighborhoods, the commission unanimously concurred. Short-term rentals also threaten long-term affordable rental housing because they entice owners with higher rental income, commissioners stated. That perspective, said planning commissioners, adheres to the city’s general plan and zoning laws and addresses the temptation to convert long-term rental property into higher-income, short-term lodging. The city is obligated by state law to maintain a certain portion of its housing stock as affordable, long-term rental property.

Allowing short-term rentals in any neighborhood constitutes a business because there’s an exchange of money. If no money is exchanged, such as in home-swapping agreements, there is no conflict with zoning regulations, the commission upheld.

“I don’t like to see Laguna become a rental city,” said commissioner Roger McErlane, who pointed out that property owners take advantage of Laguna’s desirability by raising rents. “It seems at some point, Laguna sells out.”

The tenor of Venice Beach in Los Angeles County has changed in permanent residential areas to a more transient population due to short-term rentals, said commission chairperson Ken Sadler, something, he said, he does not want to see happen in Laguna Beach.

Discussion on the controversial topic lasted two-and-a-half hours with more than 30 residents testifying, some arguing that each situation needed case-by-case consideration and others describing how short-term renters supplement house payments.

 

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11 COMMENTS

  1. In Laguna Beach the number one income is real estate. Short term beach rentals have for decades been a source of income for property owners. In today’s economy a farmer has to plant the crop that gives the most return for his investment. Real estate is the only thing that grows here. If you don’t believe me take a moment and think about the icons that represent our town.. and with what subjects are we the most concerned ? It has always been about the visitor and hospitality. Heck even the people that have the reputation for the largest hospitality center in the USA where do they choose to go for vacation?

    What does the government or the governing body of farmers do to prevent farmers from growing just the most profitable of crops?

    We need to balance between the restrictions we made in the past to keep the things we want to preserve in the future.

    What if we instead, all turned out property’s into either reserved specialty dinning destinations or private art galleries? When all the visitors needed a place to sleep we could just set up tents on the beach?

  2. I don’t want to own property in Laguna Beach . I want to visit . I lived there for many years and love to “come home.” So they regulated skateboarding and now they’re going to regulate this? Represented my free and easy childhood but I’m afraid those days are over. And have a place for me to stay this summer?

  3. In an election year this type of regulation seems daunting. So individuals have a right to own guns but I do not have a right to rent my property to short term vacationers? Seriously?

  4. As a longtime Airbnb customer and Laguna Beach homeowner (who does not sublet), I am really disappointed with the city’s decision. I don’t have a proper guest room and so AirBnB was an excellent way for my out of town friends to stay nearby without having to pay higher rates for a small hotel room. Aggravated!

  5. The commission followed the recommendation of a study that was completely biased. The study bypassed our neighboring cities and specifically chose cities and studies biased against homesharing. Newport has over 1000 short-term rentals producing over $2M/year on TOT. San Clemente just approved regulation on home-sharing.
    With millions of hosts and thousands of cities supporting home-sharing the proposal lines Laguna with the likes of North Korea and not progressive cities like San Francisco, Mendocino, and many others that recognize that proper regulation enriches the community.
    Support home sharing in Laguna on Facebook homesharing4laguna.

  6. Did someone say Election Year? I am your neighbor City Council members – and this affects more of the people you represent than you know – Think for the future – hiring witch hunters instead of taking responsibility of our changing society has many questions in our minds – Laguna Beach will always be a destination – PREPARE FOR THE FUTURE – PLANT THE GOOD SEEDS NOW!

    We are going to live like brothers together or we are going to parish like fools – Martin Luther King

  7. I got kicked out of my long term rental when the owners wanted to make a little more money on short term rentals. They needed the money to buy more houses. Good for them, I guess…

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