Anaheim imposes moratorium on new short-term rentals
Anaheim has become the latest California city to crack down on property owners who rent out their homes and apartments through the Internet, voting to impose a temporary halt to short-term rentals, which are clustered primarily around the Disneyland resort.
After extensive testimony from residents griping about noise and parking problems at short-term rental properties, the City Council voted 4 to 1 to adopt a 45-day moratorium on new applications for the rentals to give staff time to consider long-term fixes.
Carmine Ruggiero, an Anaheim resident since 1958, said a home next to his became a short-term rental about two years ago, creating noise and trash from partying, boisterous guests.
“It’s a constant annoyance,” he told the council.
Other residents complained that rentals generate late-night traffic, party crowds and repeated police visits. Some homeowners spoke of losing privacy, feeling unsafe in their homes and wanting to move.
But several vacation rental owners told council members that they were being punished for the misbehavior of a small group that doesn’t play by rules already set up by the city, and they asked officials to enforce existing regulations more vigorously.
Both neighbors and owners asked to be part of the task force studying the matter.
The growing popularity of online sites used to rent out private homes and apartments, such as Airbnb and VRBO, has sparked similar debates in other cities, including Los Angeles, Santa Monica and San Francisco.
Some community activists complain that the rentals are disruptive and take needed housing off the residential market.
Anaheim homeowners applauded the approval of a moratorium but said they wanted the city to go a step further and completely outlaw short-term rentals in the city.
“We request that Anaheim’s leadership now move quickly to take similar action to protect our community,” Steve Acterman, a homeowner on South Della Lane, wrote in a letter to the council.
The topic prompted a meeting of more than 50 residents in a neighborhood west of Disneyland two weeks ago to discuss their concerns and ask questions of city code enforcement officials.
“Where I’m standing I can throw a baseball and hit two or three rental units from my house,” said Scott Casteel, who has lived in Anaheim for 50 years.
City officials estimate that nearly 400 homes and apartments in Anaheim are rented on a short-term basis, with the city receiving five to 10 applications a week for new rentals. By comparison, the city is home to 150 hotels with nearly 20,000 rooms.
In Anaheim, hotel taxes generated about $110 million for the city last year, more than 40% of the city’s general fund revenue. The city collects a 15% room tax on short-term rentals as well as an annual $250 registration fee.
Because of the popularity of Disneyland and Disney California Adventure, rooms in Anaheim rent for an average of $184 a night, compared with Orange County’s average of $174 a night, according to data from PKF Consulting USA, a lodging industry research firm.
But a city report says the Anaheim Police Department has registered about 300 calls to investigate short-term rentals in the last year, including more than 100 complaints of loud parties or disturbances and 50 involving parking or traffic problems.
“In addition to these operational issues, local residents frequently complain about the uneasy feeling caused by a constant and ever-changing influx of ‘strangers’ into their neighborhood,” according to the report.
Airbnb spokeswoman Alison Schumer rejected the suggestion that short-term rentals are being used as party houses for youngsters. She said the average age of an Airbnb guest in Anaheim is 34.
A moratorium, according to city officials, would give staff time to investigate new regulations such as limits on the geographic concentration of rental properties and restrictions on the total number of bedrooms a property owner can add to maximize rental profits.
Staff will report back to the council on Oct. 20 and could request an extension of the moratorium.
Twitter: @hugomartin
