There’s no denying that short-term rental properties in California have become increasingly popular in recent years especially thanks to companies like Airbnb which have made it very easy for local owners to turn their investment properties into short-term rentals.
In spite of the popularity of short-term rentals though, there has been growing opposition to short term rental properties in California, especially since it’s easy to see how those short-term rentals are eating up the supply of available rental properties that long-term tenants could be renting.
Thankfully, the city of Carmel California recently approved a ban on new short-term rental properties in their downtown area. The good news for investors who already have permitted short term rental properties in downtown Carmel is that those properties will be allowed to remain in the area forever.
If the construction of new short-term rental properties is allowed in the Carmel area in the future, the council may approve those properties if the builders agree to add three additional units, which will be used for long-term tenants who have moderate to low incomes.
Big Money Influences Short Term Rentals in Carmel
It’s easy to see why it’s taken this long for cities like Carmel to move forward with banning short-term rentals because these rental properties are often very lucrative and can rent for over $1,000 per night during their busy seasons.
With many of the owners of Carmel’s short-term rental properties also living in the area, the battle over Airbnb and similar short-term rental properties has been a long one. The good news though is that after a long and intense dialogue, the city is finally able to start doing something about alleviating the housing crisis and bring him back badly needed long term housing to the Carmel area.
The Dec. 3 unanimous 3-0 vote — council members Carrie Theis and Jan Reimers recused themselves — approved an ordinance that outlaws new short-term rentals, or transient rentals as Carmel calls them, in the commercially zoned area of Carmel. The city has banned short-term rentals in the residential district for many years.
The action means that Monterey, Pacific Grove and now Carmel all have ordinances banning short-term rentals in one capacity or another.
Since most of Carmel is in the state-regulated Coastal Zone, the adopted ordinance still has to get the nod from the California Coastal Commission. Marc Wiener, community planning and building director, told the council that commission staff has reviewed the ordinance and it did not raise any red flags over the language.
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