County-Wide Issues with STRs that Need Enforcement Policies and Resources

County-Wide Issues

Advertising illegal rentals

  • New York Times: “Airbnb in Disputes With New York and San Francisco” that states, “Airbnb executives once promoted San Francisco as a city it could work with. After affordable housing advocates expressed fear that the service worsened the city’s housing crunch, Airbnb agreed to cap short-term rentals for entire homes and required hosts of such listings to register with the city. That law, which became known as the “Airbnb law” for its friendliness to the company, took effect in February 2015. But only 20 percent of the 7,000 or so hosts required to register have done so, and Airbnb has not removed lawbreakers . . .”

 

  • “Last month, San Francisco supervisors unanimously approved an ordinance that would fine Airbnb $1,000 per day for each host listed on its website who is not registered with the city.” New York Times,July 1, 2016. . . Campos says illegitimate rentals have effectively taken 1,900 long-term housing units off the San Francisco market at a time when the city is experiencing a historic housing shortage. But the reality that concerns municipal officials is the drastic expansion and commercialization of short-term rentals. There are indications that owners or managers of single or multiple properties available for rent year-round provide a disproportionate share of the market’s volume. (Los Angeles Times, July 19, 2015). And just three weeks ago “Airbnb Sues San Francisco to Block Rental Registration Law: Startup is seeking an injunction to prevent the city from fining Airbnb for each unregistered listing (June 27, 2016 Wall Street Journal);

 

Hurting Businesses, Schools and Hospitals.

What protects the community as a whole from excessive numbers of STR/HS taking long-term affordable housing off the market, clogging roads, squeezing workers paychecks due to increased rents, and longer commutes which cost workers hours of unpaid for travel time, gas, and car maintenance, which also causes longer commutes for workers which pollute the air?

STRs taking affordable long-term housing off the market costing displaced workers $70 millions of dollars per year and forcing longer commutes at the employees expense.

  • The Monterey Herald reported (6/24/16) “The demand for rental housing on the Monterey Peninsula now far exceeds the supply. . . People are scrambling out there,” said Jan Leasure of MontereyRentals.com a consortium of seven local property managers. “We manage about 400 houses and right now there is a 1 percent vacancy rate.” The problem pertains to the long-term rental market as there are plenty of short-term rentals, said Leasure.”  NOTE: Leasure is President of MCVRA

 

  • According to an article in Monterey County NOW, March 13, 2014 Land Lords; “Blake and Erika Matheson started doing short-term rentals in Pacific Grove in August of 2010, just months after the city passed the ordinance. They decided to fix up an in-law unit on their property. These days, it’s nearly always booked. “What started off being a few weekends became what it is today, where we have about three days off per month,” Erika says. They are not struggling to pay their mortgage, he says, it just seemed like a good idea, and it’s now something they enjoy doing. “It has significantly changed our cashflow, and our lives,” he says. “It’s appreciable.”  [This is a 90% occupancy factor and above the 71% for the licensed hotel industry.]

 

Increased Homelessness

It’s hard for all workers, but families at the low end of the income have faced homelessness as the housing they counted on is neing rented to workers displaced and who make more money than they do.

 

Increased Commutes and additional visitors vehicles increase greenhouse gas emissions and other air pollutants

 STRs Contributing to Lack of Access to Coastal Resources

Failure to Pay TOT Taxes