From To be or AirBnB; Voices of Monterey Bay, by Joe Livernois, 12/7/17
In Capitola, short-term vacation rentals are all about location. Census records show that Capitola has about 5,000 housing units, but only a couple hundred of them could be turned into vacation rentals. The city ordinance limits vacation rentals to several tiny square blocks in the heart of city’s tourist areas, including Riverview Avenue along Soquel Creek, and the adjacent Capitola Village area around Esplanade Park.
Capitola requires both a city permit and a business license, and applications for both are relatively straight-forward.
The city created its STR policies in 1991, and the City Council recently decided it would not expand the STR boundaries outside the Village. Earlier this year, it notified the numerous scofflaws outside the boundaries that they had 30 days to cease and desist, said Katie Herlihy of the city’s community development department.
She said enforcement of the city’s STR policies is by far the department’s biggest code-enforcement issue, representing about one-third of all actions taken by enforcement o!cers. Most violators are reported by neighbors, she said.