City Council will discuss how to deal with short-term rentals

Short-term vacation rentals in Laguna Beach advertised by companies like Airbnb are up for the City Council’s discussion Tuesday.

The rentals have been a source of big concern in recent years, with some rental homes bringing in tenants who are noisy, party late at night and create parking concerns.

City Hall has received 158 citizen complaints of illegal short-term rentals since May. Of those, 150 were resolved and closed; the remaining eight are open cases of violations in process, according to city staff.

Proponents have contended that the rentals are more affordable options for consumers than luxury hotels.

The council will be giving city staff feedback on a draft ordinance that could potentially prohibit short-term lodging — defined as 30 consecutive days or less — in residential areas but allow them to be in commercial zones.

City staff, who are also working with a lobbyist in Sacramento on the issue, noted that a recently hired code enforcement officer to “handle all short-term lodging complaints and will proactively investigate the 175 to 200 units that staff reported finding online through searches of hosting sites.”

Tuesday’s meeting follows another in August, when the council unanimously voted to extend an existing moratorium on new short-term rental permits through October 2016.

Nearly 30 public speakers spoke out on the issue, which Laguna and other cities are facing as Airbnb and similar services make vacation rentals both affordable and easy to access for would-be clients.

Some have contended that with vacation rentals bringing in potentially hundreds per night to landlords, they’re driving up housing prices for long-term tenants looking for places to live in town.

Mark Christy, a Laguna Beach resident and principal investor of The Ranch at Laguna Beach, told the council in August that his employees say they couldn’t afford rising housing prices and the short-term rental industry is a factor in that.

“How can you compete when you’re paying $2,500 [per month] for a two-bedroom place and the allure of $475 a night is calling the landlord?” Christy said.

City zoning law allows short-term rentals as long as they have a permit. In August, 51 property owners had them.

The meeting begins at 6 p.m. in the council chambers, 505 Forest Ave., Laguna Beach