VISTA — A year after adopting a short-term rental ordinance, the city of Vista has seen a surge in registered properties and transient occupancy tax revenue, though some work remains to bring more rentals into compliance.
Under the ordinance that went into effect last June, all operators of short-term rentals (also known as STRs or vacation rentals) are required to obtain a business license and short-term rental permit, and to register for and pay the transient occupancy tax (TOT).
Staff provided the Vista City Council with an update on the city’s progress with STRs over the past year. Within the month after the ordinance passed, Vista saw the number of registered rentals increase from 36 to 49. As of Oct. 10, that number is up to 103.
Revenue from TOT also grew substantially, from an annual total of $139,729 at the end of the 2023-24 fiscal year to $368,566 in the most recent year, including late fees and interest.
“We have seen positive growth trends from our short-term rental registration, and it has more than doubled since June of 2024 and our tax collection has increased by more than 150% from the prior year,” said City Management Analyst Lisa Hand.
Restrictions in the ordinance include a two-night minimum stay for non-hosted rentals, quiet hours from 9 p.m. to 9 a.m., a limit of five local STRs per owner, a cap on the number of guests equal to double the number of rooms plus one, and a prohibition against events such as weddings.
These rules also make it easier for residents to find information about registered STRs and contact owners if needed. A public portal on the city’s website contains information about each registered STR, and owners must display a contact number at the front of the rental in case of any issues.
“The ordinance makes it harder for short-term rental operators to evade registering and paying transient occupancy tax. There’s more transparency and accountability since we know who is operating short-term rentals, where they are, and whether or not they’re paying their taxes,” Vista Budget and Policy Manager Sarah Taylor said. “This helps us and the public understand what’s happening in the community.”
Reducing unfair advantages for STR operators who aren’t paying TOT also levels the playing field for all operators, Taylor said.
Vista staff are aware of 13 operating STRs that remain noncompliant under the ordinance. Code enforcement staff have issued administrative citations to these properties with $500 fines.
If the owner still does not comply, the second fine is set at $1,000, and the third fine and any subsequent citations within the same year are $1,500 each. The STR permit is also revoked after the third citation within a one-year period.
“TOT is the property of the city, and so the operator is collecting on behalf of the city. So, at no time does the operator own, you know, that money,” said City Attorney Walter Chung.
The city has contracted with Deckard Technologies to identify and monitor STRs, and to perform outreach to operators about the ordinance.
Deckard has set up online portals for streamlined STR registration and TOT payment, a public portal with information about STRs in the city, and a 24/7 hotline and online portal for complaints.
Deckard CEO Nick Del Pego said Vista city staff have been great to work with and noted that identifying vacation rentals is a “never-ending game,” since new ones are always coming on the market.
Once new STRs are identified, Deckard will send letters to the owners to inform them of the registration and TOT requirements, as well as the other rules under the ordinance.
“It’s really about the education, you know, telling them how to do business properly in the city of Vista, and how to make sure that they’re doing the right things by your community,” Del Pego said.
Del Pego said they come across over 1,000 STR listings in Vista, but many are the same rental across various websites like Airbnb, VRBO, Booking.com, and more.
City Councilmember Corinna Contreras said she would like to see more data on how long it takes for STR-related complaints to be addressed in the city and wondered whether the city might need to hire another code enforcement officer.
However, she said she is pleased with how the program is going in its first year, especially the increased TOT.
“I’m really pleased to see how this program is working. It’s a huge amount of funding that we didn’t have before. I’m just thinking about all those years that we lost out on that,” Contreras said.
