Real Estate March 15, 2016

The Santa Barbara vacation rental debate

Many prime vacation cities around the country have jumped on the bandwagon to regulate vacation rental properties in their area. Advocates for legislation to diminish the number of short-term rental properties argue that more long-term workforce housing rental opportunities would be created for the community and site the negative impacts vacation rentals have in many residential areas such as additional noise, less parking and more traffic. Opponents to such legislation argue that a reduction in vacation rental transient tax for the city will be greatly felt, along with the revenue to owners who are dependent on the income collected from their vacation rental homes to remain as part or full-time residents.

Last year Santa Barbara’s City Council expressed that they are going to make plans to step up enforcement on zoning regulations that prohibit all residential short-term rentals, unless properly permitted. For detailed information regarding Santa Barbara’s current short-term rental requirements click here. To view a map of Santa Barbara neighborhoods which allow for application of vacation rental property permits click here.

There are currently twelve properties on the market in Santa Barbara that are properly zoned for vacation rental use, including the three R-4 zoned listings shown below. If or when the city begins implementing its short-term rental enforcement measures in non-qualified zones these properties will likely increase in value due to the lowered supply of legal vacation rentals.

1735 Chapala St

1735 Chapala Street – $808K

125 W Pedregosa St

125 W. Pedregosa Street – $999K

208 W Valerio St

208 W. Valerio Street – $1.195M

I’m happy to provide you with more information regarding potential vacation rental properties in and around Santa Barbara. Your inquiries are appreciated.