There is a finite demand for short-term rentals.


http://sandiegofreepress.org/2016/02/some-market-thoughts-on-short-term-rentals-in-san-diego/

There is a finite demand for short-term rentals. Although short-term rentals are not new in San Diego and have existed for many decades in some areas of the city particularly beach areas like Mission Beach?? the recent growth has been fueled by new techonology and trends. Ubiquitous smart phones, social media and the internet connecting the world market, and increasing global travel are all major causes. At the onset of a new trend growth can be explosive but will decline over time. At some point the supply will meet, or exceed, demand. It is hard to predict what the total demand for short-term rentals is. Per the NUSIPR study, short-term rental room nights totaled 456,000 in 2014-15 compared to 11,300,000 total room nights for hotels and motels. Short-term rentals were an estimated 4% of the hotel total night stays. Perhaps this ratio could reach 10%, maybe even 25% ??? It's hard to predict but seems unlikely that short-term rentals would entirely replace hotels, or even rise to an equivalent level. My best estimate is we are relatively close to meeting demand 5% or perhaps 10% of total hotel nights would be my estimate. This is based on discussions with other short-term rental owners / hosts and I have not found a study or formal estimate of this. Especially over the past few months I've spoken to many hosts / owners that have seen a large drop in occupancy and/or reduced nightly rates. This is partly due to the slower winter season but likely also due to increased competition as the number of short-term rental units have increased. Given the low vacancy rate and rising rent levels for rental units in San Diego and the reduced labor hours, taxes, and hassle to operate a long-term rental vs. a short-term rental I would not be surprised to see some short-term rentals being converted to long-term rentals. It may not be a trend today, but whenever the demand is met (or approached) each unit entering the short-term rental pool will reduce the revenue per unit for the short-term rental market.

Everyone needs to see the black and white facts of how ridiculous this argument is. Thank you! Jeff Bosson (Orange County Vacation Rental Association OCVRA.org)

I have attached the facts from the City of San Clemente that we finally received regarding the Nuisance Calls on Vacation Rentals by Address.

Here is the breakdown, it speaks very loudly to the fact that there are a lot of very good owners of Vacation Rentals in the City of San Clemente (72% have zero calls), and a few houses that receive the vast majority of the calls.

Here are the highlights:


  • 72% Of Vacation Rentals received 0 calls
  • 87.9% Of Vacation Rentals received 1 or less calls
  • 93.8% Of Vacation Rentals received 2 or less calls
  • 97.6% Of Vacation Rentals received 3 or less calls
  • Leaving 2.7% of the Vacation Rentals in San Clemente receiving 51.44% of the calls.

    More importantly, the overwhelming majority of calls went to 6 houses out of 455 Vacation Rentals.

    That is 6 Houses!

    I would respectfully request that based on this information you see that the solution presented by Staff on Tuesday is (to use Council Member Donchak's words) using a sledge hammer when a scalpel is the right tool for the job. Short Term Rentals and neighbors can coexist. It is currently being done in many cities and if we would just be invited to the "Round Table" to show what the best practices are, we could have a solution before the busy season starts.

    In spite of City Council's recommendations, we still have not been invited to participate or give ideas.

    Sincere Thanks,

    Jeff Bosson

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    THE RECOMMENDATION THAT THEY WILL BE VOTING ON IS THAT YOU MUST LIVE IN YOUR VACATION RENTAL AT LEAST 275 DAYS PER YEAR TO RENT IT AS A VACATION RENTAL.

    You can read the whole proposal here.

    The planning commission has drastically underestimated the amount of vacation rentals this will impact at 40%. We need to explain to the council before they vote on this just how many will go out of business if this requirement is adopted.

    AT THE COUNCIL MEETING, PLEASE FILL OUT A BLUE CARD STATING THAT YOU ARE AGAINST ORDINANCE NUMBER 9-A (If you do not wish to speak, please still fill out a card so that your opinion is on record and note on the card that you do not wish to speak).

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    The Orange County Vacation Renters Association, in addition to many independently owned & operated short-term rentals throughout San Clemente, support common sense regulations and good neighbor policies - to preserve the peaceful quality of our neighborhoods for residents & visitors alike.

    We Support Safe & Sane Regulations

    • Stronger enforcement of Noise Abatement Laws
    • Standardized Regulations (Occupancy Limits, Parking Limits)
    • Improved registration system that increases accountability & TOT collection
    • Mandatory TOT# posting on marketing materials
    • Posting of 24/7 contact information to address concerns should they arise
    • Clarifying San Clemente municipal code to define short-term rentals the same as long-term rentals.

    Everyone deserves a peaceful neighborhood. Homeowners and managers of long-term and short-term rentals should be held to the same standard. Parties, Barking dogs or other complains should be prohibit for rentals as well as for permanent residents. on a consistent basis. We Agree.

    Good Neighbors

    There is no reason to have regulations that do not accomplish these goals and restrict homeowner's rights because they provide measurable benefit to the community, small businesses, or tourists visiting "The Spanish Village By The Sea."

    We Do Not Support:

  • Requiring a minimum length of stay.
  • Limiting the number of days a home can be rented.
  • Limiting the number of properties that can be rented short term.
  • Banning vacation rentals in any specific neighborhood or land-use zone
  • Focus on the Issues

    The opposition to short-term rentals boils down to only a few questions such as noise and nuisances. Focusing on those will solve the problem without deterring tourism, hurting local businesses, deceasing tax revenue or limiting a homeowner's right to use their homes.

    How You Can Help

    Before officials take away property rights, it is time for everyone to speak up and take action. Here is how you can help.

    Overbearing restrictions have been attempted in other cities and proven ineffective, difficult to track and enforce. They would cause operators to go underground, resulting in less TOT earnings for the City of San Clemente.