David Schmalz here. Short-term rentals have long been a sticky subject locally, as opponents argue they hurt the fabric of the community and take vital housing units off the market, while its proponents broadly argue that a property owner should be able to use their property as they see fit, and besides, they create tax revenue for local jurisdictions.
I understand the sides of the arguments, but as a renter, I largely sympathize with the former—a house I lived next to in Seaside for many years once housed a large family, while today, it is now sometimes rented out illegally on AirBnB, but otherwise sits empty. I find that wildly frustrating.
So I’m intrigued about the City of Monterey’s effort to put a stop to this practice by upping the stakes for the offenders: On Sept. 17, Monterey City Council passed an ordinance that would allow the city to impose fines greater than $1,000 for code violations.
A city report presented to council noted that “because operating an illegal short-term rental can be quite lucrative, the current fine of $1,000 for the first [violation] and limited to $1,000 for all subsequent violations may not be a sufficient disincentive for some owners to stop the practice.”
During Car Week, for example, the report states that one STR charged $4,400 for a four-night rental.
City Manager Hans Uslar says the City Attorney’s office is working on a fine schedule to bring back for City Council approval that will escalate the fines issued to repeat offenders. He adds that on average, the city issues around 30 to 50 fines per month for illegal STRs.
The City Council also approved an amendment to the city’s Downtown Specific Plan that, even a few years ago, would have been unthinkable: eliminating all residential parking requirements for housing in the plan’s area, which stretches from Van Buren Street to Camino El Estero.
The purpose of the amendment, Uslar says, is because “every on-site parking spot increases the cost of housing.”
Neither action the council took, admittedly, will add much in the way of housing units in the short term, but they are incremental steps. And with the moratorium on adding new water meters in Cal Am’s service area still in effect, the Peninsula essentially has one arm tied behind its back when battling the crisis, so every step counts.