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Dana Point to hold workshop on short-term rentals - OCRegister

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Dana Point officials will host a workshop on Monday, Feb. 22, to consider whether the city should develop a pilot program to allow more short-term rentals.

The coastal city isn’t alone in trying to find the right mix of allowing short-term rentals and making sure residents and community character aren’t impacted.

The California Coastal Commission urges short-term rentals in beach towns, arguing they allow lower-cost options for coastal accessibility, especially as hotel rates along the coast have surged. Dana Point’s discussion follows the Coastal Commission’s suggestion to launch a short-term rental pilot program.

Dana Point, a popular tourist town, is discussing a pilot program for short-term rentals on Monday, Feb. 22, 2021. (Photo by Leonard Ortiz, Orange County Register/SCNG)

The city’s Planning Commission last September discussed past efforts to regulate short-term rentals, what current regulations are, as well as enforcement statistics. A subcommittee was formed to conduct public outreach on the pilot program idea.

Monday’s workshop will evaluate what regulations are enforceable and address community concerns and compatibility issues in the community, officials said.

While short-term rentals, typically described as stays shorter than 30 days, can be income generators for the property owners and for cities collecting taxes, some residents complain about noise and parties in local neighborhoods, parking issues and other impacts from a revolving flow of vacationers.

Laguna Beach a few months ago tightened restrictions on short-term rentals in residential neighborhoods, opting to only allow new rentals in the city’s commercial district. Already permitted rentals will be allowed to remain in residential areas.

Newport Beach recently added a list of new rules  and opened a 24/7 hotline for residents’ complaints.

In the past decade, short-term rentals have surged in popularity and in numbers. They can be valuable tax generators for cities, but with so many different online booking systems, they can be challenging to track. One of Dana Point’s considerations would be additional methods to track operations and collect taxes.

Dana Point in 2016 created a short-term ordinance, but a referendum petition was filed by residents and the city allowed only already existing short-term rentals to operate.

Latest figures compiled by the city show an estimated 147 active short-term rental permits, which have generated about $757,000 in taxes.

Some rules already exist, such as requiring two off-street parking options and no weddings or conferences. Since 2017, there have been 176 calls to a 24-hour hotline call service that tracks complaints, according to a city staff report.

The next step for Dana Point following the workshop would be to develop a pilot program allowing permits for all three types of operations: rental of a homeowners’ primary residence, rental of a non-primary residence, and home stay or rental of a portion of the home.

Some ideas discussed by the subcommittee would be to extend code enforcement hours during peak seasons to address issues, increasing fines, requiring guests to acknowledge “good neighbor rules,” requiring guests to park in the driveway or garage and increasing the minimum renter age to 25.

Other rules could include making emergency contact information available to neighbors to address issues onsite and requiring owners and managers to respond to complaints within 20 minutes.

For more information, go to danapoint.org.

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