Del Mar on brink of short-term rental rules

Where are most of the short-term rentals in Del Mar? Near the shoreline in the North Beach and in the South Bluff area – residential neighborhoods where vacation rentals aren't allowed.

Yet the city doesn't even have an ordinance to regulate them. It's been working on one for years. Del Mar banned new short-term rentals in 2016, and recently extended the ban another two years. Rules drafted in 2017 never took effect because the California Coastal Commission said they were too restrictive.

Now, armed with fresh numbers showing the types and locations of short term rentals of less than 30 days - work yielded by a consultant's study covering January through April, 2023 - the city is back at it.

"We appear to be the last coastal town to put in regulations," said Debbie Church, a resident who was previously involved in the effort to draft an ordinance, at Monday's city council meeting.

The heated debates that stalled the process in the past seem to have quieted. Supporters spoke of the need for a permit process to enact a three-strikes-and-you're-out policy, and looking at what cities such as Solana Beach and Carlsbad have done.

"All their rules have been approved," said Kimberly Jackson, who owns a short-term rental.

"Grandfather in all existing units - or face a mess of litigation like Mission Beach."

In Mission Beach, 30 percent of properties are allowed to be short-term rentals.

Despite the calm ahead of the public outreach phase, many of the report's findings point to the sort of problems that have caused dissent all along. The 116 active vacation listings are approximately 4.51 percent of the total dwelling units in the housing-starved city. In San Diego, on the other hand, only one percent of properties can be short-term rentals (except in Mission Beach).

In Del Mar's previous attempt to create an ordinance that prioritizes single family home neighborhoods, the city restricted vacation rentals in residential zones, while allowing them to operate without limit in the commercial zones.

The study found only one active short term rental in a commercial zone.

Only eight listings were found in the city's allowable locations, while 36 were rentals of the primary residence. And 80 of the 116 listings were investment properties without owners on site. Worse, the average length of stay is getting shorter at 3. 7 days.

Unlike its neighboring cities that have established a permit process, Del Mar is missing out on collecting TOT - hotel taxes.

"It's 116, probably 200 short term rentals happening now," said councilmember Dan Quirk, "but we don't have revenue."