City Council discusses tighter limits for many short-term rentals

Citing a threat to quality of life, the Laguna Beach City Council on Tuesday recommended setting strict limits on property owners who offer short-term vacation rentals on Airbnb and similar websites.

Council members favored outlawing rentals of up to 30 days in most residential neighborhoods — what are known as R-1 and R-2 zones.

They did, however, support allowing owners who live on site to rent rooms for short stays, and agreed that the 33 property owners with valid permits be allowed to continue offering space.

“This is one of those issues that defines us as a community,” Councilman Robert Zur Schmiede said. “The state is in a housing crisis, and our general plan promotes the retention of rental housing stock and [short-term rentals] go against that. Dollars entering the city doesn’t enter my calculus. The integrity of neighborhoods is something I ran on.”

In May the council approved a temporary moratorium on issuing new permits to property owners who want to offer short-term rentals and then extended the order through October 2016 to allow city staff time to provide suggestions on a revised ordinance.

City staff suggested 15 conditions for property owners, including a limit of two overnight guests per bedroom and no on-street guest parking or loud music after 10 p.m.

The council did not take a formal vote Tuesday, referring proposed ordinance to the Planning Commission for consideration of the revisions. The commission will vet the draft law before it returns to the council for final adoption.

“A lot of this is being driven by personal financial problems,” said Mike Beanan, vice president of the South Laguna Civic Assn., which supports the staff recommendations. “We need to think about why so many people are upside down in this town.”

Beanan suggested homeowners with extra rooms make space available to those in need.

“We have to be careful about eliminating what limited housing we have available for seniors, veterans and artists,” he said.

Forty-one speakers addressed the council.

Supporters said the practice allows visitors, who may not be able to afford higher-priced hotel rooms, to enjoy Laguna’s beaches and artistic charm while also allowing much-needed income for property owners who otherwise may be forced to sell and leave town.

Opponents complained about absentee landlords who live in other cities and don’t know what happens on their property. Partying, unruly behavior, noise and parking problems are among their common concerns.

Chris Prelitz, who rents to short-term guests in his Bluebird Canyon home, said that when he and his wife, Heidi, bought their lot, they counted on dual incomes to cover the mortgage.

“Halfway through building the home she had a heart attack and passed away,” Prelitz said of her 1998 death. “Life happens to people. If we want to keep people here we have to allow them to be flexible with sharing their homes out. That does not take away from housing stock. It adds people into the city that spend money. It’s a place where someone is there on site and it is safe.”

The council in August voted to hire a contracted code enforcement officer to investigate an estimated 200 illegal short-term lodging units. Since May, the city has received 158 complaints, 150 of which were resolved, according to a city staff report.

The council directed the Planning Commission to consider those recommendations and allow for home sharing, where no money is exchanged, and require property owners to renew rental permits after a certain period of time.