With the proliferation of vacation rental websites such as airbnb.com and VRBO.com, many San Luis Obispo homeowners have started to open up their doors to visitors looking for short-term stays. But there’s just one problem: the city doesn’t allow vacation rentals.
After an initial study of the issue, the San Luis Obispo Chamber of Commerce encourages the city to reevaluate the current ordinance on short-term stays or vacation rentals.
The ordinance was drafted in the 1980s as a way to combat possible rowdy guests and absentee owners. It bans vacation rentals in any zone.
“We would like to see the city study and possibly reevaluate its current stance on short term stays in order to bring fairness in taxation and regulation to this industry locally. The issue raises questions that impact the availability of workforce housing and neighborhood wellness that need to be better understood,” explained Charlene Rosales, director of governmental affairs at the SLO Chamber.
Following complaints from residents, the city began enforcing the ordinance earlier this year when it started to issue citations threatening fines. Those that did not cease operations were then fined.
“The main concern is the neighborhood compatibility,” said Doug Davidson, the city’s deputy director of community development, citing concerns of possible noise and parking issues along with fears about absentee property owners who may not care for the home as diligently as an on-site homeowner.
In the current ordinance a vacation rental is defined as a residence or part of a dwelling that is furnished and rented for fewer than 30 consecutive days. Exceptions include: fraternities, sororities, convents, monasteries, hostels, bed-and-breakfast inns, hotels, motels and boarding/rooming houses.
This issue was brought to the SLO Chamber’s volunteer Issues and Evaluation Committee and was vetted by local business and community leaders. Then it was brought to the Chamber Board of Directors, where it was further deliberated before the position was adopted.
The city’s Tourism Business Improvement District (TBID) is in the process of evaluating the issue, according to Clint Pearce, with Madonna Enterprises and the current chair of the TBID Advisory Board. Some local hoteliers say they would welcome a change to the ordinance to create a more level playing field.
“I support them becoming official and abiding by the same laws and same regulations as we do and paying into the TOT (Transient Occupancy Tax),” said Nipool Patel, owner of the Comfort Inn and Suites Lamplighter. “It’s good to have a good mix in town and there are all sorts of different travelers looking for different options. I don’t look at it as competition.”
Including lodging of this type in the TBID constituency could contribute higher growth toward its assessment collections, and therefore provide additional tourism marketing dollars to help draw out-of-area visitors to SLO.