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Vacation rentals pepper the beach neighborhood, where 206 of the city's permitted 271 short term rental units can be found. The city is now drafting an ordinance to restrict vacation rentals to the beach neighborhood, cap the number allowed in the downtown area and crack down on vacation rentals that crop up in single family neighborhoods.
City moves to tighten vacation rental restrictions BY LEA BOYD
Joining droves of cities nationwide, the Carpinteria City Council took its first step toward tightening restrictions on vacation rentals at its Aug. 10 meeting. Fears of losing workforce housing and changing the character of single family neighborhoods drove the council’s unanimous decision to draft an ordinance capping the number of such rentals in the downtown area and more stringently enforcing restrictions on rentals that crop up illegally in single family neighborhoods. “I strongly want to protect long term rental housing,” said Councilman Al Clark, whose argument steered the council toward limiting the number of units allowed for short term rentals in the downtown area. Currently, 63 licensed units exist in that zone; the council directed staff to draft language that would prohibit any more. The ordinance in the works will continue to allow vacation rentals in the beach neighborhood and contain a fee schedule to pay for added staff costs to track and enforce stricter regulations. Councilmembers also instructed staff to include language permitting home stays, in which a portion of an owner-occupied home is rented short term, throughout the city. The growing success of online vacation rental companies, like airbnb and VRBO, which simplify the short term rental process, has fueled the conversion of massive numbers of homes to vacation rentals throughout the state and country. In Carpinteria, 271 such rentals are licensed, but city staff estimates that anywhere from 300 to 500 units are in operation. The majority of Carpinteria’s legal vacation rentals, 206, exist in the beach neighborhood, an area that has historically held the highest number of short term rentals. City Manager Dave Durflinger explained that Carpinteria’s challenge with illegal rentals is nowhere near as severe as some other visitor-serving communities, such as the City of Santa Barbara, but given the increasing popularity of vacation rental websites, their
Over the decades he has lived in Carpinteria, Councilman Brad Stein said he has seen more and more affordable long term units become vacation rentals. “Those units are being lost, and they’re not coming back.” proliferation is likely to continue, causing increasing issues along the way. Currently vacation rentals are regulated by city zoning code and not permissible in single family neighborhoods, many of which are on the north side of Highway 101. City staff has become aware of short term rentals cropping up illegally and has fielded some neighbor complaints over noise and parking. “I think we should preserve our single family neighborhoods at all costs,” said Mayor Gregg Carty. Carpinteria resident Jim Reginato said an unpermitted rental near his home creates regular disturbances. “They’re constantly making noise, early in the morning until late at night,” he said. “I think we need more regulation on it.” Rentals operating without proper permitting fail to pay city transient occupancy tax, or hotel bed tax, which is required for any lodging rented for 30 or fewer days. This year, the city projects TOT revenues of $2.3 million, about 25 percent of which comes from vacation rentals. In addition to generating city tax revenue, vacation rentals provide supplemental income to property owners, create an expandable market of lodging and stimulate retail, restaurant and other commercial business within the community.
Theo Kracke, a Santa Barbara resident and owner of Paradise Retreats, encouraged the council to implement “fair regulation” that minimizes problems caused by vacation rentals but allows for the benefits of such operations. Managed properly, he said, short term rentals can be a great asset to neighborhoods and the city. Putting a face to concerns over diminishing long term rental inventory and affordability, Carpinterian Stephanie St. Gal de Parg commented that the long term rental where she lives on 6th Street is about to be converted to a vacation rental, and she is finding it difficult to locate another place to live in a tightening rental market. Councilman Brad Stein noted that he recently sold a home in the beach neighborhood and most potential buyers asked whether they would be able to increase the size of the structure or rent it to vacationers. Over the decades he has lived in Carpinteria, he said he has seen more and more affordable long term units become vacation rentals. “Those units are being lost, and they’re not coming back,” he said. City staff will prioritize drafting an ordinance for public review and approval by the planning commission and the city council.