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Newport Beach’s popular short-term rentals face tightening restrictions - OCRegister

Newport Beach leaders support more rules clamping down on short-term rentals, requiring renters to be at least 25 years old and making owners of the properties responsible for parking violations issued to renters.

The latest regulations, approved by the City Council in a 4-to-3 vote on Tuesday, Oct. 13, aim at striking a balance between visitors and residents who mix in the popular coastal tourist town, as the demand for short-term lodging has surged in recent years. A second vote will need to be taken Oct. 27 to finalize the changes.

Two other items the city wants to pursue – establishing a minimum three-night stay requirement and capping the number of permits throughout the city to 1,550 – need California Coastal Commission approval before changes can be made.

Newport Beach’s discussions on short-term rentals are the latest for coastal towns answering to concerned residents who worry vacationers bring unregulated hotel-like atmospheres into neighborhoods, with complaints of partying, parking issues and other impacts to their communities.

Laguna Beach last week got approval from the Coastal Commission to ban new short-term rentals in residential areas, but compromised by allowing more in commercial areas.

Newport Beach, by far, is the most popular destination for short-term rentals along the coast.

While Newport Beach has an estimated 1,490 active permits for rentals – more than 95% are in the coastal zone – nearby Huntington Beach has only 266 permitted vacation rentals. Dana Point has 307 and Carlsbad has 690. San Clemente has 172, while Santa Monica has 340, according to a staff report.

Anaheim, another sought-after destination for travelers heading to theme parks and sporting events, has about 277 permitted short-term rentals.

Newport Beach has already put in place several other restrictions in recent months, including adding a 24/7 hotline for complaints, with a requirement that a owner can respond to the home within 30 minutes.

In July, the city put a limit on the number of people in a rental, based on the property size, and also required people making the registration to be over 21 years old, but Tuesday’s action would bump that age requirement up to 25.

Previous rules also require operators to have a “Nuisance Response Plan” to ensure owners take responsibility for issues with their customers and say how they will deal with unruly guests.

Creating a three-day minimum stay requirement and prohibiting new permits could potentially impact low-cost stays, a concern for the Coastal Commission, which favors allowing short-term rentals as an alternative to pricey luxury hotels.

The city contends that it has many options for vacationers, including more than 4,000 hotel and motel rooms and 471 campground and RV spaces.

The minimum night stay requirements would also discourage the use of short-term lodging units for non-residential purposes, such as large gatherings, weddings and commercial filming, and encourage vacationers to spend multiple days visiting the beach and other sites in the area, city officials said.

For parking violations, property owner may also receive an administrative citation for the violations issued within 100 feet of the unit being rented. Owners would have to collect license plate numbers for all vehicles of their renters, provided at the city’s request.

Mayor Will O’Neill, who voted against passing the new rules, said “good operators” seemed upset by the proposed regulations.

“If the goal is to find the balance between our residents, businesses and visitors and the good operators are upset, I’d like to find a solution,” he said. “We’ve passed some significant changes and we haven’t had enough time to see if those work.”

Councilman Jeff Herdman said the ad hoc committee tasked with looking at the issue has had 20 meetings in 20 months, 10 of those with community members and rental operators.

“We’ve given them a great deal of time and opportunity for input. We’ve listened carefully to them and we’ve put in many recommendations from them,” he said. “Before we approved the ordinance, we had no rules. We now have rules… we’re not aiming any of our work at good, reliable property owners. We’re just in the process of getting an industry in our city regulated and under control.”

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Newport Beach’s popular short-term rentals face tightening restrictions - OCRegister
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