The City Council will soon be addressing the issue of short-term rentals (STR) in our city, and their decision could have wide-ranging impacts. Short-term rentals bring many tangible benefits to homeowners, residents, travelers, neighborhoods and local businesses as well as the economic health of cities in which they are allowed to thrive. We represent a group of city residents who support short-term rentals and believe they should be welcome in the City of San Diego.
Short-term rentals allow for flexibility in travel, increased local spending, and engagement with parts of the City otherwise bypassed by visitors relegated to traditional tourist neighborhoods. Recent studies have shown that visitors who stay in short-term rental accommodations spend more on local businesses and are more likely to be return guests to the market as a result of their experience. These guests distribute the economic benefits of tourism to neighborhoods that would not otherwise receive them, allowing for opportunities of growth and revitalization at a truly local level. More money being spent outside of traditional tourist neighborhoods strengthens communities and businesses, a benefit to all residents. Community members who rent on a short-term basis often rely on it to supplement their income. This supplemental income allows them to meet mortgage obligations, make repairs or upgrades to their homes, or pay for regular household expenses. According to a report by the director of the National Economic Council, Gene Sperling, the average additional income earned by homesharing hosts represents a 14 percent annual raise for middle-class families. The financial security this provides to homeowners plays an important role in neighborhood resilience. San Diego is a top-10 tourist destination, and tourism has been identified by the San Diego Regional Economic Development Corporation as one of our three pillars of economic development in the region. Cities around the world are embracing innovative new marketplaces in the vacation industry space, crafting responsible ordinances that benefit both the short-term rental hosts and their neighborhoods. We believe San Diego, given its status as an innovation hub, should do the same.
The San Diego Vacation Rental Management Alliance (SDVRMA) and the Short Term Rental Alliance of San Diego (STRASD) have joined together to support neighborhood-friendly and responsible rental practices. In that effort, the SDVRAM and STRASD have agreed to a number of common sense regulatory proposals:
– Support defining STRs as a limited regulated use in the Municipal Code and treating whole home rentals the same as partial home rentals to help address the confusion that exists today;
– Greater enforcement of noise and nuisance laws to allay concerns and give neighbors peace of mind;
– Registering all STRs with the City of San Diego so information can be managed and owners contacted to address some of the concerns raised during this debate;
– Posting point-of-contact information on a 24/7 basis on each property;
– Collection and remittance of all TOT and related taxes and assessments to the City of San Diego;
– Allowing hosts and guests to determine the length of a stay – not the municipal code;
– Conforming with California’s standard occupancy limits of 2+1 (two adult guests per bedroom, plus one adult guest in the house); and
– Support a property owner’s rights to determine how often to rent out the property, but also require responsible renting to make sure neighborhood quality of life expectations are maintained in accordance with the City’s existing rules. The City of San Diego has an opportunity to set an example of how a balanced ordinance, respecting both the rights of homeowners and community members, can add substantial economic growth while supporting happy, healthy neighborhoods. We are asking the Council to take a tempered approach and not attempt what other jurisdictions have tried and failed to do through harsh, knee-jerk over-regulation that simply drove short-term rental activity underground. To learn more about the short-term rental proponents’ vision for responsible property ownership and renting, please visit ShareSanDiego.org. Jonah Mechanic is with SeaBreeze Vacation Rentals LLC.