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Laguna Beach is putting an end to short-term, Airbnb-type rentals

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New short-term rentals are not welcome in Laguna Beach’s residential neighborhoods, the City Council decided Tuesday night.

The council sided with residents who had complained that the practice of people renting out houses or apartments — for 30 days or less under the current city ordinance — was plaguing neighborhoods with excessive partying, loud noise and parking headaches.

Technically, the unanimous vote extended an existing moratorium on new short-term rental permits until October 2016 to give city staff time to craft an amended ordinance. But the council said its intention was for the staff to prepare an ordinance banning the practice in residential areas — although such rentals might be allowed in other areas of the city, like commercial zones.

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Twenty-seven speakers addressed the issue, which has gained national attention in the past few years as online sites such as Airbnb and Vacation Rentals By Owner have made it easier for people across the country who have space to rent out to reach a larger audience.

The council was not ready to decide Tuesday what to do with the 51 property owners who have existing permits to rent short-term. City staff reported in May that 64 owners had valid permits but altered the number after doing more extensive research.

Proponents say short-term rentals are a less-expensive option for travelers who don’t want to pay high-end luxury hotel prices, but opponents at Tuesday’s meeting said some online listings are not as affordable as some might think.

Mark Christy, a Laguna Beach resident and principal investor of The Ranch at Laguna Beach, an Aliso Canyon property boasting a hotel and golf course, said some of his employees have left town because they couldn’t afford rising housing prices. The short-term rental industry has played a factor, Christy said.

“How can you compete when you’re paying $2,500 [per month] for a two-bedroom place and the allure of $475 a night is calling the landlord?” Christy said.

Property owners who rent their space short-term said the practice can work if managed properly. Plus, it offers clients a way to enjoy Laguna with home-style amenities such as a washing machine and kitchen, they said.

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Ann Butter has rented out space in her Laguna Beach house on Airbnb since 2009. Butter, who lives in Los Angeles County, said Airbnb required evidence of a city-issued permit before she could advertise her house on the company’s website. Airbnb also required her to submit maps showing parking spaces and locations of trash containers and fire extinguishers.

“The responsibility lies on us, the hosts, to know who we rent to,” Butter said. “It’s not just making the money. We’re responsible for actions of guests. I screen them. Airbnb screens them.”

Councilman Kelly Boyd echoed Christy’s sentiments, contending that people who were able to rent longer-term in the city are now priced out as owners find they can make more in two weeks by renting short-time.

“I don’t like seeing people taking advantage of this,” Boyd said. “If they bought a home with the intent to rent to pay for it, that upsets me. We can’t afford to lose leasing year-round rentals in our community. We’re short as is now.”

Staff will also return to the council with suggestions on beefed-up code enforcement.

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