Summary: The Encinitas City Council proposed a short-term rental ban in 2004 after hearing complaints from permanents residents about noise, trash, and parking. Since the ban involved zoning law, it was passed on the Coastal Commission who voted 7-0 against the ban in November of 2006 citing that it would limit access to the beach.

Rental Market: An Encinitas city report estimated that there were 125 short-term vacation rental properties within the city limits.

Timeline:

January 2004: Permanent residents of Encinitas filed complaints to the city council regarding noise, trash, and parking problems brought on by short-term renters.

December 2004: After months of open forums to hear the views of permanent residents, as well as rental owners, the city council voted to propose an ordinance prohibiting new short-term rentals in residential areas and to require existing short-term rental owners to obtain a special license and to pay taxes.

March 2005: The Encinitas Planning Commission rejected the proposed ordinance because the commission found short-term rentals fell under the purview of zoning law rather than city ordinance.  The commission suggested instead that the city enforce the ordinances currently on the books regarding the "nuisances" of noise, trash, and parking.

April 2005:  The Encinitas city council passed the ordinance banning future short-term rentals in residential areas, despite the suggestions of the Planning Commission.  Existing short-term rental owners could continue renting their property if they could prove that they had been previously renting it and obtained a short-term rental permit each year.  Since the ordinance involved zoning law, it was passed on to the California Coastal Commission for approval.

June 2005: The Encinitas city council adopted further regulations on short-term rental owners that would require that the owners, not only to obtain a permit, but to "respond quickly to complaints of noise, overcrowding, drug use or excessive drinking."

February 2006: The Encinitas city council withdrew their request to the California Coastal Commission to ban short-term rentals fearing that the commission would deny their request.

June 2006:  The Encinitas city council adopted further regulations to spell out the consequences for short-term rental owners who failed to control the behavior of their tenants.  Under the new regulations, short-term rental owners had to provide a phone number to neighbors that the neighbor could call to leave a complaint about the short-term tenants.  The owner then had to respond within 2 hours and make an effort to correct the problem within 24 hours.

July 2006:  The Encinitas City Council resent the previously proposed short-term rental ban to the California Coastal Commission.

August 2006: The Encinitas City Council voted to charge $150 for short-term rental permits.

November 2006: The California Coastal Commission rejected the ordinance proposed by the Encinitas City Council requesting a ban on new, short-term rentals. 

Advocates of the Ban on Short-term Rental:  Permanent residents (especially those that live on Neptune Avenue), Resident groups (Encinitas Citizens for Residential Stability, Downtown Encinitas Main Street Association), and most members of the Encinitas City Council.

Their Arguments:

• Short-term renters are unruly hooligans only looking to "party" and have fun.  They cause parking, traffic, noise and trash problems.
• Short-rentals "cause residential neighborhoods to lose their flavor."
• Since many of the rental properties garner up to $9000 per week in rental revenue, much of the coast line is being bought up by speculators who care nothing about the neighborhoods.
• Short-term renters repeatedly deprive permanents residents of sleep due to their late-night partying.
• One resident of the Seabluff Condominiums reported the the large number of rentals in her complex have made it difficult to refinance her condo.
• The public has plenty of access to the Encinitas beaches--there are year-round vacancies in the city's motels and hotels.

Opponents of the Ban on Short-Term Rentals: Property managers, members of the Seabluff Community Homeowners Association, and a homeowners group rallying on the website MyEncinitas.org.

Their Arguments:

• The complaints about trash and noise come from a very small, very vocal group of local residents.
• Vacation rental homes provide an affordable accommodation for families traveling to the beaches.
• Encinitas doesn't have enough hotels and motels to accommodate all of the people who want to go to the beaches.
• Short-term renters spend money in town's restaurants and stores thus contributing to the local economy.
• Prohibiting short-term rentals would financially hurt those owners used to the to rental revenue.  Many would be forced to sell their property.
• Levying a transient occupancy tax could generate up to $472,000 a year for the city.
• Long-term renters can be just a unruly as short-term renters.
• By banning short-term rentals, Encinitas would be limited to "a group of wealthy elites."
• The ordinance intrudes upon the owners' property rights.

In the News:

8/25/06: Council votes for landlord permit SignOnSanDiego.com

8/12/06: Encinitas again seeks vacation rental curbs SignOnSanDiego.com

6/16/06: Encinitas OKs plan for keeping peace at vacation rental homes SignOnSanDiego.com

6/15/06: Vacation rental rules target landlords SignOnSanDiego.com

6/2/06: Encinitas takes aim at rowdy tenants SignOnSanDiego.com

2/10/06: Short-term vacation rental ban put on hold in Encinitas SignOnSanDiego.com

2/8/06: Commission may reject short-term rentals ban SignOnSanDiego.com

6/16/05: Council OKs short-term rental rules SignOnSanDiego.com

5/28/05: Fines mulled for landlords' rowdy renters in Encinitas SignOnSanDiego.com

4/15/05: Encinitas clamps down on vacation rentals SignOnSanDiego.com

4/13/05: Ban on short-term rentals considered SignOnSanDiego.com

3/5/05: Encinitas panel rejects short-term vacation rental ban SignOnSanDiego.com

12/9/04: Encinitas bans new short-term vacation rentals SignOnSanDiego.com

12/4/04: Encinitas considers regulation of short-term property rentals SignOnSanDiego.com

7/16/04: Panel named on short-term rentals SignOnSanDiego.com

5/14/04: City to regulate short-term vacation rentals SignOnSanDiego.com

5/12/04: Encinitas locks out short-term rentals SignOnSanDiego.com

5/7/04: Encinitas council may regulate short-term stays SignOnSanDiego.com

Are there developments in your vacation rental market that others should know about?  Please let us know.

© Copyright 2007 HomeAway, Inc.

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