Hansen: Online vacation rentals can miss the point

Most people go on vacation to unwind, unplug and recharge, but in today’s online service economy, where companies like Airbnb, VRBO and a host of others compete for pillow space, one thing is certain: You may need a vacation before the vacation.

It can be tough work trying to find a place in desirable locations like Laguna Beach. If you can’t afford expensive resorts and you don’t want to stay in a low-budget hotel, then the short-term vacation rental market is likely your sweet spot.

But with the rapid growth of private homes being offered online, sometimes illegally, the market has suddenly changed — and not for the better, according to established, licensed owners.

Since 2003, Lee and Chris Casegrillo have owned and operated Blue Agave, one of about 65 licensed operations in the city, which has placed a moratorium on new such online rentals until at least August.

It’s their home. They live on the top floor and rent out the bottom. Located on the beach side of Coast Highway between Brooks and Cress streets, it has a convenient, midtown location and is within walking distance of several restaurants and other amenities, not to mention a popular surf spot.

It’s not high-end fancy, but it’s comfortable with funky art and character. The couple don’t take credit cards. They prefer to talk to potential renters over the phone and gauge their interest, get to know their needs and determine if the spacious, three-bedroom rental is a good fit.

Often, they get repeat customers. These visitors start summer traditions with their families, arriving from Aliso Viejo to New Zealand and everywhere in between.

“We run this in a personal way,” Chris said. “There’s a sense of understanding. We’re like family without the dysfunction.”

This notion of personal service is often lost online. While the sites might be more convenient in some ways — with their interactive filters, maps and price points — there’s something to be said for talking with someone over the phone.

“It’s a very tight rope to walk because you don’t want to alienate the innovators and those who want to do the Uber thing and the Airbnb thing, but at the same time, there’s a balancing of interests that needs to be exercised, and that’s a huge challenge,” Chris said.

He sees the issues to be resolved — regarding licensing and oversight — as reaching far beyond local laws. The legislative efforts are falling way behind, Chris said.

“If you look at Uber and you look at Lyft and you look at Airbnb, the laws are just so far behind the reality,” he said. “Governments are playing catchup. Laguna is behind Venice, and Venice is behind Santa Monica, and they’re all behind everybody. I just think they’ve been asleep for a long time.”

As a licensed owner, he’s concerned about surviving as a business, but he’s also worried about the change to Laguna. Together 33 years, he and his wife value the quality of life that brought them here in the first place.

“It’s almost like we’re becoming a society where we’re going to starve government functions to the point where it’s going to be this whole sharing economy with all these independent contractors without benefits,” he said. “So it’s as if the transformation of services and profit making is full speed ahead with these apps, but employee benefits and governmental regulation and all the attendant insurance issues and other things — criminal background checks, pre-employment screening — all those things are lagging behind.”

The economic effects of firms like Airbnb are starting to be studied systematically across the country. Three Boston University professors published an exhaustive analysis in May of Airbnb’s competitive influence on the hotel industry in Texas.

“We estimate that in Austin, where Airbnb supply is highest, the impact on hotel revenue is roughly 8 to 10%. We find that Airbnb’s impact is non-uniformly distributed, with lower-priced hotels and hotels not catering to business travel being the most affected segments,” according to the report, “The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry.”

The Casegrillos don’t mind competing, but they are looking forward to an Aug. 18 hearing by the City Council to address the issue.

“It’s certainly had an effect on us, these people with their illegal rentals,” Lee said. “I’m glad to see the city finally addressing it. It’s going to be interesting to see how they clamp down. They’ve done it in Santa Monica; they’ve done it in a few places. They’re trying to get Airbnb, HomeAway and VRBO to only take places that are licensed. Well, lots of luck. They make too much money.”

So in the meantime, the Casegrillos continue to book their home and hope for the best. They enjoy the work. For returning guests, Lee likes to make them feel at home. This weekend, for example, they are getting a returning out-of-town family, and Lee had pulled out some snapshots from previous years.

She put them on the refrigerator using magnets in preparation for the people’s arrival.

“It makes them feel at home,” she said, adjusting the pictures.

She hesitated, put her hand on the picture of a little girl and smiled.

DAVID HANSEN is a writer and Laguna Beach resident. He can be reached at hansen.dave@gmail.com.