Laguna Beach reevaluating policy on short-term rentals

LAGUNA BEACH, Calif. (KABC) -- The city of Laguna Beach is reevaluating its policy on short-term rental properties after ongoing complaints from some residents.

For the last 10 years, Lisa Marder has lived and worked in the beach town. She says she loves the ocean view and the quiet atmosphere, but says her neighborhood has recently changed.

"Two bedrooms and you've got 14 people, you've got a lot of cars, you've got a lot of loud noise," Marder said. "People not respecting the other people that work for a living."

She says short-term rentals, or people renting for less than 30 days, are causing major issues. After hearing many complaints like hers, the city is now looking at ways to change the policy.

"Maintaining a reasonable quality of life for those that reside in the neighborhood in the long term and for people that may be visiting our community as well," said Laguna Beach City Manager John Pietig.

He helps monitor a strict permit process, which requires an application, a hearing and a 10 percent occupancy tax paid to the city. But, Pietig says short-term rental websites are helping people skirt the process.

"Definitely the websites, social media and those type of things have complicated things," Pietig said.

According to a staff report, about 175 rentals are being operated without permits. The city says it sent a letter to the various short-term rental websites about the permit issues, but hasn't heard back.

In May, the Laguna Beach City Council placed a moratorium on short-term rentals. Now, it must decide if a stricter policy is necessary, or if an outright ban is best. Some residents say the latter would be a big mistake.

"They want to come here and enjoy their vacation, we don't want to push people away from that kind of economic boom," Bobby Coe said.

The city held a public hearing Tuesday night on the issue.