The Debate Surrounding Santa Barbara Ban on Short-Term Rentals Continues

The Santa Barbara County Board of Supervisors were still working on a purposed Ordinance to govern short-term rentals, which are properties rented for 30 days or less. The move is part of a series of measures to further regulate – and completely ban – the short-term rental industry in the county.

Royalty Free Photo

After several open hearings and studies, on June 2017, the Board of Supervisors followed through with the decision to ban short-term rentals in unincorporated residential areas. This could lead to afurther outcry from entrepreneurs in the area.

A Growing Business

Short-term rentals are becoming increasingly popular, especially in areas like Santa Barbara where tourism is one of the main economic sectors. The ability to rent out properties for a short period of time has allowed many professional management companies like Paradise Retreats and investors to generate revenues by investing in vacation properties. Some would argue boosting real estate sale prices in the process. Those same revenues are also benefiting the Santa Barbara County in the form of taxes.

To put it into perspective, companies like Paradise Retreats are a member of the Santa Barbara Chamber of Commerce and offera superb service to guests wanting to rent villas and properties for a short period of time. It manages hundreds of properties in the area. They have had to convert many of their properties into long-term rentals to remain in ordinance with county laws.

False Data to Blame

The reasons behind Santa Barbara County’s Board of Supervisors decisionto implement a complete ban are questionable at best. The SB City Council believes that short-term rentals are the primary cause of the drop in numbers of affordable housing. This seems largely untrue, especially considering the area is known for its luxury properties and the high-end property market.

At the same time, the Santa Barbara City Council also pinned the degrading quality of residential neighborhoods onthe presence of more short-term rental properties. Studies have shown that while cases of such degradation exist, the main cause is not the presence of short-term rentals. Nevertheless, the Board of Supervisors insists on banning all short-term rentals as a solution to these problems.

Alternative Resolutions

A complete ban has been determined even with the outcry from many entrepreneurs and Santa Barbara residents during the latest open hearing. A common sense regulation of the short-term rental industry is considered a better strategy and shocking this wasn’t implemented.

Alternatively, the City Council should have chosen to limit the existence of short-term rentals in certain areas with a revised Ordinance. This is a more acceptable solution and one that will improve the local property market.

It is possible that the Board of Supervisors will not take action. The short-term rental industry actually prefers a more regulated market, since it sets the perfect foundation for the market to grow further by professionals. The debate on this matter continues to heat up and the Board of Supervisors is expected to announce its final decision very soon.