Property owners advertising short-term rentals in Laguna Hills will soon face fines up to $2,000 after city councilors recently approved an ordinance enhancing regulations on such.
According to city officials, short-term rentals—meaning those for a day, weekend, or a couple of weeks— have always been prohibited in Laguna Hills.
Late last year the city hired a consultant to investigate if there were short-term rentals in the city, turning up 29 results.
“It should be emphasized … that short-term rentals have always been a prohibited use in the city of Laguna Hills,” City Attorney Gregory Simonian said during a council meeting on April 25.
Property owners are still allowed to rent out their properties for one month or longer, according to a city staff report.
Under the ordinance, owners who are found to have illegally advertised a short-term rental will receive a $2,000 fine initially, and $1,000 each day thereafter as long as the advertisement exists.
The decision comes after 10 residents of Nellie Gail Ranch approached the city last June regarding “a house party causing a nuisance,” in their neighborhood, according to the city staff report.
Following the complaints, officials directed city staff to conduct surveys and receive public input on the issue.
Survey results collected from 140 respondents reported 71 percent in favor of banning short-term rentals, citing concerns over noise and safety.
“I lived a couple of doors down from a vacation rental and the noise was unbearable,” one survey respondent wrote. “People are on vacation and wanting to have fun, so they stay up late, play music, talk loud … the police [were] often being called on the vacationers.”
Before the ordinance was finalized, a couple of residents pleaded, during public comment, for a grace period to make the adjustment.
“If [this ordinance] passes, pretty quickly it’s going to cause financial burden on us,” said resident and property owner Adrian Placinta.
He said he and his wife began renting out their Laguna Hills home late last year after purchasing a larger home to raise their family of three. Passing the ordinance would push him to sell his second home quickly and suffer financially, he said.
“If this causes distressed sales on current short-term renters, they’re going to sell that property for less, and it’s going to hurt the neighborhood,” he said.
Irvine resident Tatiana Taleb additionally asked for more time for owners of rental properties to be in compliance. She said she and her husband purchased a Laguna Hills home last September for short-term rentals and switching to long-term rentals or selling aren’t viable options.
“Just the [homeowners association fees] and mortgage is $4,200 ... If I wanted to rent it out on a yearly basis, that would go for around $3,200 or even less so I would be in great financial debt,” she said.
According to Laguna Hills City Attorney Simonian, such a grace period would be up to the city manager who is responsible for enforcing the city’s municipal code.
“There is an opportunity for a grace period, that is possible,” he said. “Barring any egregious or aggressive violations.”
Further details were not given, but it was implied grace periods would be handled case by case. The ordinance becomes effective May 26.
A real estate data analytics company has been hired by the city to monitor and report back such short-term listings, Laguna Hills Community Development Director Larry Longenecker told The Epoch Times.
Additionally, the popular short-term rental website Airbnb announced a permanent ban on party houses worldwide late last June.
