STR Crazy

Years of controversy between residential neighborhoods and short term rental (STR) operators appear to be ending in a compromise which does not completely satisfy either side.

Short term rentals (less than 30 days) are slated to continue operating in Del Mar, with heavy concentration in beach neighborhoods. Council has directed staff to prepare by September an ordinance codifying their STR agreement, and also agreed to put a Transient Occupancy Tax (TOT) measure on the November ballot that will allow collection of TOT from STRs, generating about $775,000 annually. The 13% TOT rate would be the same as what guests pay for hotel stays. Permit fees plus TOT revenues would be required to ensure that STR regulation is cost-neutral to the City.

STRs will be subject to a citywide cap of 129, plus neighborhood caps (77 in North Beach; 32 in South Bluff, 15 in Hills). Existing registered STR operators will be allowed to continue, even if the caps are temporarily exceeded. New STRs are limited to one per owner, only in residences occupied by the owner for more than six months per year. STRs are limited in multi-unit condos and prohibited in apartments. The ordinance will require good neighborhood practices and compliance procedures.

The new ordinance would be subject to Coastal Commission approval.