VISTA — New regulations adopted by the Vista City Council last week seek to control the rampant issue of unregistered and untaxed short-term rentals.
There are currently 36 registered short-term rentals in Vista that brought in around $100,000 in transient occupancy tax, or TOT, revenue last year. However, the city’s code enforcement department knows of at least 100 more that are operating illegally and skipping out on taxes.
The new ordinance, adopted unanimously by the council on May 28, requires all operators of short-term rentals, also known as STRs or vacation rentals, to obtain a business license, TOT registration and a new short-term rental permit. The ordinance also requires a two-night minimum stay for non-hosted rentals and sets quiet hours of 9 p.m. to 9 a.m., among other restrictions.
Vista officials said the regulations are needed to prevent disruptions in residential neighborhoods where STRs are located, including excess noise, parties and illegal parking. City staff said they know a handful of vacation rentals repeatedly used as party locations, causing a nuisance for neighbors.
“We really want to safeguard the peace, safety and general welfare of our neighborhoods,” said Community Development Director Joseph Vacca.
Under the ordinance, individual owners are limited to operating a maximum of five local short-term rentals, although there is no cap on the number or percentage of STRs allowed in the city overall. STRs cannot be operated out of accessory dwelling units.
The ordinance also restricts the number of permitted guests to double the number of rooms plus one and restricts the holding of events such as weddings and commercial filming onsite.
To make it easier to contact owners with complaints, each STR must display a contact phone number at the front of the home that neighbors can contact in case of an issue.
Officials also approved a fine structure for violations. The first administrative citation in a year would charge owners $500 per violation, followed by $1,000 per violation for the second citation and $1,500 per violation for the third citation. An STR permit will be revoked for a 12-month period after the third strike unless there is a change in ownership.
Over a dozen residents spoke in favor of the regulations, with several describing negative experiences with unruly STR guests in their neighborhoods or owners they were never able to contact about concerns.
“Since out-of-town people who have never lived in the house next door bought it to rent it out as a short-term rental, we have, every three days, new unvetted transients [and] guests, constant loud partying and screaming inside and outside in the front yard and backyard, cars speeding down our private dead-end street… a party house next door that has continued to up the ante when it comes to disturbing our neighborhood.” said resident Andrew Stess.
Several residents and council members also shared concerns about the city’s ability to enforce the rules.
Local STR owner Timothy Crowder claimed that Vista’s code enforcement department already struggles to properly enforce existing regulations and is worried about how they would fare once more short-term rentals are registered.
“It’s obvious to me that short-term rentals are not the problem. The real issue here is that the city has not enforced the regulations that are currently in place,” Crowder said.
City staff said they are currently focused on implementing the ordinance and registering the unregistered STRs. They will then iron out details regarding the enforcement and collection of TOT.
City Council members discussed the possibility of using TOT revenue to hire more code enforcement officers and changing hours to ensure greater coverage in the evenings and on weekends.
“I would like to see increased personnel in code enforcement. I would like to see the modification of hours. This is to enforce our laws — these are often very weakly enforced,” said Councilmember Katie Melendez. “This ordinance does not necessarily answer all of our questions around enforcement.”
Council members said they would be open to adding more regulations in the future, such as setting a local cap. They also instructed city staff to look at the option of collecting TOT through Airbnb and other hosting platforms, which can charge guests automatically on behalf of the city.
“I think it’s imperative for us to make sure we can collect those as quickly as possible,” said City Councilmember Dan O’Donnell.
The ordinance goes into effect on June 29.
