The City of Morro Bay is stepping up enforcement of its short-term rental ordinance by cracking down on short-term rentals that are operating illegally.
Morro Bay resident Kathi Hooker lives directly across the street from an Airbnb and near other vacation rentals.
“They are all spotless and the people that rent them seem to respect the property of the owners,” Hooker said.
But fellow resident Rick Gilligan says noise is an issue with short-term rentals and believes there are too many.
“I think we have more than enough. We have a lot of hotels and motels,” Gilligan said.
The city’s short-term rental (STR) ordinance requires property owners to obtain a permit, business license, and transient occupancy tax account prior to operating a short-term rental. These permits require an annual renewal and inspections every four years.
With some residents reporting negative experiences, the city is now cracking down.
“Residents have reported noise and parking problems associated with STRs. In addition, landowners who are following the City’s STR rules, or on the City’s STR permit waitlist, have asked for more enforcement to ensure a level playing field,” said Airlin Singewald, City of Morro Bay Community Development Director.
The ordinance allows up to 175 full-home rentals in residentially zoned areas. Singewald says the city has already met that number and has 179 properties currently on the waitlist for permits.
Gilligan says he is looking forward to the increased enforcement.
“The rules are reasonable. They went through city council and could’ve had their say during that. They should just abide by them and pay their transient occupancy taxes and do what they should do,” Gilligan said.
The city will be looking at short-term rental websites and comparing them to permit records.
Short-term rentals operating illegally will be required to shut down immediately, according to the city. Property owners will also be liable for the last three years of unpaid transient occupancy tax and could face fines of up to $500 per day of non-compliance.
For properties operating with expired business licenses or transient occupancy tax accounts, the city may authorize continued operations once permits are renewed and back taxes are paid.
“I think the city should provide some kind of rule that makes them catch up on their taxes. I think that’s a necessary thing,” Hooker said.
The city will start sending out enforcement letters on November 1 to owners and operators of non-compliant and partially compliant short-term rentals.
