As short-term rentals become more popular, cities face complaints and competing demands

For vacationers looking to spend a night or two at some of Orange County’s most sought-after coastal homes, the right property is just a click away.

In the past few years, the popularity of online sites such as Airbnb, HomeAway and Vacation Rentals By Owner have made it easier for people across the country who have space to rent out to reach a larger audience. However, neighbors have long complained about trash, excessive partying and parking headaches stemming from the short-term renters.

Residents’ concerns have forced several Orange County cities to grapple with the upswing in rentals, some choosing to ban the practice altogether and others opting to regulate.

The Laguna Beach City Council voted unanimously Tuesday to extend an existing moratorium on new short-term rental permits until October 2016 to give city staff time to craft an amended ordinance.

However, the council said its intention was for city staff to prepare an ordinance banning the practice in residential areas — although such rentals might be allowed in other areas of the city, like commercial zones. Currently, 51 property owners have permits to rent short term in Laguna Beach. It’s unclear whether the council will continue to allow homeowners with valid permits to rent out their properties.

Ann Butter has rented out space in her Laguna Beach house on Airbnb since 2009. Butter, who lives in Los Angeles County, said Airbnb required evidence of a city-issued permit before she could advertise her house on the company’s website. Airbnb also required her to submit maps showing parking spaces and locations of trash containers and fire extinguishers.

“The responsibility lies on us, the hosts, to know who we rent to,” Butter said. “It’s not just making the money. We’re responsible for actions of guests. I screen them. Airbnb screens them.”

With multiple bedrooms, plus washers, dryers and kitchens, short-term rentals often provide a less-costly alternative to high-end luxury hotels for traveling families in popular vacation spots such as Newport Beach, Huntington Beach and Laguna Beach.

Huntington Beach is among several cities that prohibit residential short-term rentals – generally lasting less than 30 days – though a search on Airbnb reveals dozens of listings, some as inexpensive as $90 per night.

Newport Beach has allowed short-term rentals in certain areas of the city for decades. Beachfront properties on the Balboa Peninsula, Balboa Island and Corona del Mar have long attracted visitors who want to spend a few days or a week at the beach without paying hotel prices. The city has 970 active permits for short-term rental properties, said Community Development Director Kim Brandt.

“It’s a more economical way to spend a week at the beach,” she said.

The city also benefits financially from imposing transient occupancy taxes on short-term rentals, charging 10% of the price for each rental, like it would for hotel guests.

City staff often peruses Airbnb and similar sites to ensure that the owners advertising rentals have the necessary permits.

“We know that short-term rentals can be disruptive to permanent residents, so we want to make sure it’s not occurring in areas of the city where it’s not supposed to,” Brandt said.

A few miles away, Costa Mesa city officials are studying the growth and effects of short-term rentals. The city does not have an ordinance prohibiting them, but many homeowners associations in the city don’t allow the practice, said Gary Armstrong, Costa Mesa’s economic and development services director.

“The communities right on the beach have more of an issue, but I would say it’s a concern in our city,” Armstrong said.

“We’re looking at how best to approach it.”