Seal Beach Bans Future Vacation Rentals

Short Term Rentals In California Beach Communities

Credit: OCRegister.com

[Alvin Brickman for Metrosetter Wire]

Seal Beach, a beach town in Orange County, has become the latest city to outright ban future vacation rentals, allowing those with permits or permit applications in review to continue renting.

According to Roxana Kopetman of The Orange Country Register:

“The City Council, on a 5-0 vote, agreed Monday night to prohibit property owners from renting out their homes or apartments for less than 30 days in the Old Town section of the city….

The council is scheduled to take a final vote Nov. 13, but to make sure the city does not open itself up to a flurry of new applications, the council voted unanimously to create an urgency ordinance banning any future rentals as of 9 p.m. Monday.

The only property owners who will be allowed to rent out their homes to tourists are those who recently applied for permits or who have a permit application in the pipeline. There are approximately 20 properties with permits or waiting for approval. Elsewhere in the city, the short-term rentals are prohibited” (2012).

The decision to ban future rentals immediately might have been informed by the “grace period” problem property owners are encountering right now in Austin — some property owners in Austin have had to destroy rental agreements entered into before the recent permit requirement went into effect. Oftentimes there are unforeseeable exigencies because of how uncharted the short-term rentals issue is but I suspect that future City Council members will become more and more efficient and anticipatory in their legislation.

Adam Annen, public relations manager for HomeAway, revealed in interesting factoid:

“Many people rely on vacation rentals for large parts of their annual income. To give some perspective, the average owner listing their property on HomeAway.com rents to guests for an average of 18 weeks per year, grossing about $26,000 in rental revenue.”

It will be interesting to see what actions Seal Beach property owners who weren’t able to get an permit application in before Monday will take to recoup such a high loss in income, $26,000, which is about half the median annual household income ($50,964) as of this year, 2012 (Lopez, 2012).

Works Cited

Kopetman, Roxana. “Seal Beach Bans Future Vacation Rentals in Old Town.” The Orange County Register. Ocregister.com, 23 Oct. 2012. Web. 23 Oct. 2012. <http://www.ocregister.com/news/rentals-375428-vacation-beach.html>.

Lopez, Ricardo. “Household Income Fell 4.8% during Economic Recovery, Study Finds.” Los Angeles Times. Los Angeles Times, 23 Aug. 2012. Web. 23 Oct. 2012. <http://articles.latimes.com/2012/aug/23/business/la-fi-mo-household-income-fell-during-economic-recovery-study-finds-20120823>.

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