Laguna halts new Airbnb-type short-term rentals for 45 days

The Laguna Beach City Council on Tuesday declared a 45-day moratorium on new short-term rentals, becoming the latest Southern California city to regulate a rapidly growing industry.

Websites such as Airbnb, Vacation Rentals By Owner and Homeaway have gained popularity by offering rooms in vacation-destination cities at rates often cheaper than nearby hotels.

Council members unanimously voted for the temporary ban after residents complained that the practice damages the quality of life in the city’s neighborhoods.

During the moratorium, the city will not issue any permits to property owners wishing to rent space in their houses or apartments for 30 days or less.

“We have an obligation to the residents of Laguna Beach. That is who we serve,” said Councilwoman Toni Iseman, who suggested the ban.

Tenant turnover breeds loud parties, the blocking of driveways by cars and increased trash on streets, residents said.

“People are climbing over fences to get to the beach,” said resident John Thomas, who added that the renters he observed have a “total disregard for the neighbors.”

Thomas read from the city’s municipal code about the area where his house stands.

“The zone is intended to provide a quiet living environment free from room-and-boarding houses, commercial and industrial activities,” he said. “It couldn’t be much clearer than that.”

Ronnie Rogers lives on the property he rents on Reed Street and considers short-term rentals a viable alternative for people who can’t afford to stay in luxury hotels.

“On-site management makes a difference,” Rogers said. “I require substantial deposits. If they do any damage, they lose their deposit.”

The council declared the moratorium on new short-term rentals as a temporary salve while city staff researches long-term solutions, perhaps the hiring of additional employees to enforce existing rules or the restricting of such rentals to certain zones.

Owners pay $275 for a permit that allows them to rent out space under Laguna’s current ordinance. But city staff said many owners do not register with the city and rent rooms in secret. When people don’t register, the city misses out on the revenue from so-called transient occupancy taxes.

Since 1999, 64 out of more than 100 property owners who requested a permit received city approval to rent short-term to tenants.

Popular short-term rental websites list hundreds of available rooms in the city, which is a “great disparity” to the 64 permitted businesses, a city staff report says.

Applications for short-term rentals are on the rise, as are complaints regarding the practice, according to the report.

The city logged 26 complaints in the first four months of the year, including 19 in April, Code Enforcement Supervisor Fred Fix said. In 2014, the city received 56 complaints.

“The vast majority of complaints concern entire units that are used as vacation rentals,” the staff report says. “This is in contrast to the scenario whereby a single room is rented out and the primary occupant remains on the property.”

Other Southern California cities have taken different approaches to dealing with short-term rentals.

Santa Monica’s City Council voted unanimously this month to bar the rental of units for fewer than 30 days. The measure legalizes home-sharing — renting a couch or spare bedroom, for instance — as long as the host registers with the city and pays taxes.

Aliso Viejo recently banned all short-term rentals in residential zones, citing complaints similar to those heard in Laguna, the staff report said.

Mayor Pro Tem Steve Dicterow said he was concerned about websites listing properties whose owners had not received the necessary permits to operate short-term rentals.

He asked city staff to research whether the city could impose any restrictions on the websites.

“If we notify [website operators] what our rules are and they violate our rules, can we hold them accountable?” Dicterow explained in a phone call Wednesday.