The city began the process of addressing the elephant in the neighborhoods of Malibu: short-term rentals.
The discussion over how to handle the multilayered issue dominated the Oct. 10 city council meeting. Council members reviewed 17 viable options for regulating short-term rentals. The possible solutions ranged from continuing current ordinances to outright banning the practice across the city.
The council did not pass a motion but instead directed staff to return with a comprehensive ordinance based on their feedback.
Among the 17 suggested items, the council had unanimous agreement on four approaches to regulating the practice popularized by companies like Airbnb, VRBO and others.
The council recognized the importance of banning short-term rentals for properties with outstanding code enforcement violations and multifamily homes (but would allow “home-sharing”).
Additionally, the council asked for an expanded definition for hotels/motels and a requirement that property owners provide proof that a rented out property is a renter’s primary residence.
The suggested regulations are intended to protect Malibu from enterprising out-of-town businesses while continuing to allow local residents to use the service for secondary income.
“It’s never been about the quantity of money over the quality of life,” Council Member Joan House said. “The quality of life in our different neighborhoods is at stake. If we don’t act on it now it’s just a wave that’s going to come and submerge us.”
Residents in Malibu and other California neighborhoods have dismissed the practicality of regulating short-term rentals. Malibu’s lack of code enforcement officers has been criticized as ineffective enforcement. The city suggested using the untapped transient occupancy tax collected from short-term rentals for regulation.
“One of the things that I see through this entire thing is that ‘it’s difficult to enforce,’” Mayor Lou La Monte said. “Maybe it is, but we’ve got a million dollars coming in and we can hire some people and we can enforce it.”
The ability to enforce would not be the final hurdle Malibu has to overcome before the issue is laid to rest.
The cities of Santa Monica, Anaheim and San Francisco passed restrictive measures on short-term rentals only to be sued by Airbnb.
The California Coastal Commission has shown clear support for short-term rentals. The commission has suggested limiting rentals in coastal areas also limits access to public beaches and eliminates inexpensive overnight accommodations.
These looming legal threats were considered but did not sway the conversation.
“I’m still under the same belief I’ve always had which is [the city gets] to decide what the policies are as long as they’re consistent with the act,” City Attorney Christi Hogin said. “The Coastal Commission doesn’t get to choose our precise policies.”
Discussion on the topic continued for over an hour and will likely continue in the future. City staff will return with a proposed ordinance for the council to vote on but it’s unlikely short-term rentals will be resolved soon.
“This is a discussion that is so needed and I’ll be very sad to know I won’t be around to make a final vote on it,” House said.