AB 1731 TAKES AIM AT SHORT-TERM COASTAL RENTALS

Written By Andrew Hall

For the last decade, San Diego’s government has debated regulations regarding short term rental occupancy (“STRO”). After the latest round of ordinances was repealed in October 2018, many believed it would be “when”, not “whether”, STRO regulations would be revisited. “When” has come in the form of Assembly Bill 1731 (“AB 1731).

 AB 1731 would bar qualifying properties from being rented for more than 30 days per year unless a full-time resident is on site. What is an STRO? As it relates to AB 1731, an STRO is a residential-zoned coastal property that is occupied for less than thirty (30) days. AB 1731 takes aim at investment or secondary properties in particular. In summary, should the primary resident live onsite at the property full time, then the property may be made available as a short-term rental 365 days per calendar year. However, if the primary resident does not live onsite at the property full time (defined as at least 270 days per year), then the property may not be rented to a short-term tenant for more than 30 days per year. It would also prohibit a city, county, or other local public agency from adopting, enforcing, or otherwise implementing an ordinance or regulation that would permit residential property to be made available as a short-term rental

 Proponents of the bill argue that vacation rentals are taking over beach communities and pushing out longtime residents. Opponents of the bill argue that AB 1731 could restrict money-making opportunities for families who own vacation rentals and that the proposed bill could hamper a city’s ability to adopt and pass their own regulations.

 AB 1731 is currently circulating the California legislature and has not become law…yet. Should AB 1731 eventually pass, it could have far reaching implications on the San Diego housing, market, including not only renters and tenants but those investors looking to purchase coastal properties with the intent of renting to short-term tenants. Like the proverbial “winter” oft-mentioned in Game of Thrones, STRO regulation is coming – whether that be in the form of AB 1731 or some future adaptation. If you currently own and rent residential property in a San Diego coastal zone or are interested in purchasing property in a San Diego coastal zone for the purpose of renting to short term tenants, you should keep a close eye on AB 1731 and its progeny as it could impact your plans for use of your property.

This update is provided to our clients, business associates and friends for informational purposes only. Legal advice should be based on your specific situation and provided by a qualified attorney.

Andrew Hall

Attorney Andrew Hall has over 10 years of experience handling complex real estate, business, and litigation matters throughout California and Washington. Andrew has vast experience with a wide range of clients – from residential to commercial property owners, landlords to tenants, real estate agents to brokers, title to escrow companies, hard money lenders to banking institutions. Andrew has handled cases ranging from administrative disputes, to unlawful detainers, to bankruptcies, to litigation, leaving his clients with the confidence that he can handle all of their needs from soup to nuts.

Andrew is committed to exploring efficient and cost-effective resolutions for his clients, whether that be through informal conversations with parties or attorneys, mediations, or settlement conferences. However, when litigation is inevitable, Andrew has counseled his clients through all stages of a dispute, including arbitrations, court trials, jury trials, and appeals at both the State and Federal Court levels.

Andrew resides in Carlsbad with his wife Lauren, son Nolan (7), and daughter Madeline (5). Andrew is actively involved with the Magdalena Ecke Family YMCA, where he can often be found on the weekends cheering Madeline on in any variety of youth sports or with Nolan participating in the Y’s Adventure Guides Program. Andrew enjoys playing golf, tennis, softball and good barbeque.

Andrew is committed to identifying his client’s goals and employing his big firm experience with small firm attention to help his clients achieve those goals.

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