Chapter 9.38 REGULATING SHORT-TERM RENTALS
9.38.010 Purpose—Findings and Determinations.
The City Council finds and determines that the City has received
numerous complaints related to short-term rentals, including, but not
limited to, excessive noise, disorderly conduct, illegal parking,
vandalism, overcrowding, traffic congestion and excessive accumulation
of refuse. The City Council further finds and determines that these
adverse impacts are related to the transitory nature of the occupants of
short-term rentals. The purpose of this chapter is to establish regulations
to address and mitigate these adverse impacts. This chapter is not
intended to regulate non-vacation type rental arrangements not generally
characterized by the adverse impacts referenced in this section. (Ord.
2006-05)
9.38.020 Definition.
“Short-term rental” means the rental of any structure or any portion of
any structure for occupancy for dwelling, lodging or sleeping purposes
of 30 consecutive days or less in the City, including single-family or
duplex units. (Ord. 2006-05)
9.38.030 Permit Required/Penalty.
Any short-term rental shall obtain a short-term rental permit pursuant
this chapter. Any person operating a short-term rental without a permit
shall be guilty of a misdemeanor. (Ord. 2006-05)
9.38.040 Permit Requirements.
Short-term rentals shall be regulated in all residential zones including
residential developments in PRDs (planned residential districts), as
follows:
A. Application Requirements.
1. Applicants shall submit an application for a short-term rental permit
to the City of Encinitas each year for each unit. The application for a
permit shall be accompanied by a nonrefundable application fee as
established by the City Manager; however, the fee shall be no greater
than necessary to defer the cost incurred by the City in administering the
provisions of this chapter. Although the applicant may be the property
owner or the property owners agent, the property owner shall be the
party responsible for compliance with all provisions of this chapter and
all of the laws regulating short-term rentals.
2. Upon change of property ownership or material fact, a new
application for a short-term rental permit shall be required to continue
operation of the short-term rental and within 14 days of said change the
property owner or his/her agent shall submit the required application and
fee.
3. Granting or Denial of Application. The application shall be granted
unless the applicant does not meet the conditions and requirements of
the permit, or fails to demonstrate the ability to comply with the
Encinitas Municipal Code and other applicable law.
4. Any false statements or information provided in the application are
grounds for revocation and/or imposition of penalties, as outlined within
this chapter.
B. Operational Requirements.
1. Applicants shall use “best efforts” to insure that the occupants and/
or guests of the short-term rental unit do not create unreasonable noise
or disturbances, engage in disorderly conduct, or violate provisions of
the Encinitas Municipal Code or any applicable law pertaining to noise,
disorderly conduct, overcrowding, the consumption of alcohol, or the
use of illegal drugs.
2. Applicants shall, upon receiving notification that occupants or
tenants of his or her short-term rental unit have created unreasonable
noise or disturbances, engaged in disorderly conduct or committed
violations of the Encinitas Municipal Code or applicable law pertaining
to noise, disorderly conduct, overcrowding, the consumption of alcohol
or the use of illegal drugs, respond in a timely manner within two hours
of the time the initial call (complaint) was made, and within 24 hours of
the initial call use best efforts to prevent the recurrence of such conduct
by the occupants and to take corrective action to address any violation.
Failure to respond timely to two or more complaints regarding tenant
violations is grounds for penalties as set forth in this chapter. It is not
intended that the property owner, local agent or contact person act as a
peace officer or place himself or herself in an at-risk situation.
3. The property owner or agent shall limit overnight occupancy of the
short-term rental unit to a specific number of occupants not to exceed
two persons per bedroom plus one additional person per dwelling. All
other applicable occupancy laws shall apply.
4. The property owner shall limit the number of vehicles of overnight
occupants to the number designated in the permit which shall not exceed
the number of designated on-site parking spaces. All designated on-site
parking spaces shall be made available for the vehicles of occupants.
5. The property owner or agent of a short-term rental unit shall
comply with all the provisions of the Encinitas Municipal Code.
6. Trash and refuse shall not be left or stored within public view
except from sunset of the day prior to trash pick-up until up to midnight
on the day designated for trash pick-up. All trash will be in approved
receptacles pursuant to Section 11.20.090 of the Encinitas Municipal
Code.
7. The City Manager or his/her designee shall have the authority to
impose additional standards and/or conditions to short-term rental
permits as necessary to achieve the objectives of this chapter.
8. Interior Display of Short-Term Rental Permit. Applicants shall affix
the short-term rental permit on the inside of the main entry door of each
short-term rental unit to which it applies. The interior display will also
contain the maximum number of overnight occupants permitted to stay
in the unit, the maximum number of vehicles for overnight occupants,
and a 24-hour, seven-day phone number of the private party responsible
for the facility.
9. Exterior Display of Short-Term Rental Unit. Applicants shall
display on the exterior of a short-term rental unit, a notice provided by
the City containing a 24-hour, seven-day phone number for a private
party responsible for the facility to take complaints regarding its
operation. The exterior display will also contain the number of
bedrooms, maximum number of overnight occupants permitted to stay in
the unit, and the maximum number of vehicles for overnight occupants.
The notice shall be in plain view of the general public and/or common
areas and shall be maintained in good condition at all times.
10. Adjacent Property Owners Notified. Applicants are also required to
provide adjacent property owners with the 24-hour, seven-day phone
number for a private party responsible for the facility.
11. Rental Agreements. Information on the permitted occupancy of the
dwelling, parking capacity for each unit, and trash disposal requirements
shall be stated in the rental information and agreement provided to
prospective renters, prior to their occupancy of the unit.
12. The operational requirements may be modified by the City
Manager based on site-specific circumstances for the purpose of
allowing reasonable accommodation of a short-term rental. All requests
must be in writing and shall identify how the strict application of the
operational requirements creates an unreasonable hardship to a property,
and if the requirement is not modified, reasonable use of the property for
a short-term rental would not be allowed. Any hardships identified must
relate to physical constraints to the subject site. Such hardships cannot
be self-induced or economic. In addition, any modification to the
operational requirements cannot further exacerbate an already existing
problem.
9.38.050 Violations and Penalties.
A. Violations. The following conduct shall constitute a violation for
which the penalties specified in subsection B of this section may be
imposed, or the penalties imposed and permit suspended:
1. The property owner has failed to comply with the standard
conditions pursuant to this chapter; or
2. The property owner has failed to comply with additional conditions
imposed by the City Manager pursuant to the provisions of Section
9.38.040B7; or
3. The property owner has violated any provision of this chapter; or
4. The property owner has failed to pay applicable taxes or fees.
B. Penalties. The penalties specified in subsection A of this section
shall be as follows:
1. For the first violation within any 24-month period, the penalty shall
be a fine of $250.00;
2. For a second violation within any 24-month period, the penalty
shall be a fine of $500.00;
3. For a third violation within any 24-month period, the penalty shall
be a fine of $750.00;
4. For a fourth violation within any 24-month period, the penalty shall
be a fine of $1,000.00 and suspension of the permit.
9.38.060 Imposition of Penalties/Suspension—Procedure.
Penalties, including a notice of violation, shall be imposed, and permits
shall be suspended, only in the manner provided in this section.
A. The City Manager shall cause an investigation to be conducted
whenever there is reason to believe that a property owner has failed to
comply with the provisions of this chapter. Should the investigation
reveal substantial evidence to support a finding that a violation occurred,
the investigator shall issue written notice of the violation and intention to
impose a penalty, or penalty and suspend the permit. The written notice
shall be served on the property owner and operator or agent and shall
specify the facts which in the opinion of the investigator, constitute
substantial evidence to establish grounds for imposition of the penalties,
or penalties and suspension, and specify that the penalties will be
imposed and/or that the permit will be suspended and penalties imposed
within 15 days from the date the notice is given unless the owner and/or
operator files with the City Clerk the fine amount and a request for a
hearing before the City Manager.
B. If the owner requests a hearing within the time specified in
subsection A of this section, the City Clerk shall serve written notice on
the owner and operator, by mail, of the date, time and place for the
hearing which shall be scheduled not less than 15 days, nor more than 45
days of receipt of request for a hearing. The City Manager or his/her
designee shall preside over the hearing. The City Manager or his/her
designee shall impose the penalties, or penalties and suspend the permit
only upon a finding that a violation has been proven by a preponderance
of the evidence, and that the penalty, or penalty and suspension are
consistent with this chapter. The hearing shall be conducted according to
the rules normally applicable to administrative hearings. A decision shall
be rendered within 30 days of the hearing and the decision shall be
appealable to the City Council if filed with the City Clerk no later than
15 days thereafter, pursuant to Chapter 1.12.
9.38.070 Permits and Fees Not Exclusive.
Permits and fees required by this chapter shall be in addition to any
license, permit or fee required under any other chapter of this Code. The
issuance of any permit pursuant to this chapter shall not relieve the
property owner of the obligation to comply with all other provisions of
this Code pertaining to the use and occupancy of their property.
9.38.100 Private Actions to Enforce.
Any person who has suffered, or alleges to have suffered, damage to
person or property because of a violation of this chapter may bring an
action for money damages and any other appropriate relief in a court of
competent jurisdiction against the party alleged to have violated this
chapter.
Nothing herein shall be deemed or construed to create any right of action
against the City or any of its officers, employees, or agents. The sole
purpose and intent of this section is to create a right of action between
private parties, entities and interests, which are or may be impacted or
affected by various aspects of short-term rentals within the City.