SD Rostra

Short Term Rental Issue

There is a petition on change.org asking the mayor and the City Council to ban short-term rentals in the city of San Diego. I’m not going to link to the petition because I don’t want you to sign it. A total ban would be ridiculous and an invitation for people to just flaunt the law. However, there are some issues that ought to be dealt with regarding short-term rentals.  Some negative comments about short term rentals from my neighbors on Next Door.

Other cities have taken some steps to regulate short-term rentals.  Portland’s approach, however, seems a little heavy handed.

Portland will start issuing permits for its first legal short-term rental operations in private homes as soon as September.
The Portland City Council on Wednesday gave its OK for Portlanders to rent out one or two bedrooms in their home over-the-counter, $180 permit after an inspection and notifying neighbors.

$180 permit? Why?  This will only encourage people to evade the system and reduce the extra tax revenue that Portland could receive.  Further, there is no need for an inspection. This market is very much self regulating, with renters providing feedback on the quality of their stay.

A better approach for San Diego would be very light touch regulation. Owners who want to do a short-term rental, should pay a very low fee, maybe $10, so that the city is aware of their activity. They should also pay the same transient occupancy tax (TOT) that hotels do. If owners don’t control their rental properties their permits could be revoked.
Exit question: If I rent out my home on airbnb.com do I get to vote on the use of the TMD tax? Would I have standing to sue that it violates Prop 26?

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