Renting a house is changing in the city of Saratoga, California. There is a new rule on how homeowners can rent out their properties, mainly affecting short-term rentals (like those listed on well-known platforms like Airbnb and Vrbo). The reason for this change is the many complaints from neighbors whose peace and safety have been affected. So, let’s learn more about what has specifically changed.
Changes with the new rental law
Saratoga city council has decided to ban short-term rentals in the entire city, including renting homes to visitors or tourists for only a few days or short stays, which is common on platforms like Airbnb and Vrbo. What’s more, the new rule also bans advertising or arranging these rentals on the internet. So, each day a property is announced as a short-term rental will be considered a separate violation.
Now, let’s continue with the consequences for those who do not follow the law:
- The first violations can cost $1,500
- The second one $3,000
- And the following violations within one year can reach $5,000
Even though short-term rentals are not allowed, any that still occur must pay business license fees and transient occupancy taxes.
Saratoga neighbors
This decision was made after many permanent residents’ complaints. A great number of neighbors stated that living near rental homes to tourists was the cause of many issues.
Among the most repeated complaints, they were so fed up with parties lasting up to three days, loud noises, trash, cars blocking driveways and narrow streets, and difficulties for emergency or delivery services to access homes. Other residents mentioned their concern about safety due to many unknown people entering and leaving the neighborhood.
At a city council meeting on January 21, a quick survey showed that more than 70% of residents opposed short-term rentals like Airbnb and Vrbo in their neighborhoods. After hearing these complaints, council members voted 4-1 to approve the stricter rules.
Some residents said they did not want their quiet community to turn into a “mini-hotel” area designed for visitors rather than long-term neighbors.
How it will be applied
To make sure everybody follows the law, the city of Saratoga will use an external company that will check platforms like Airbnb and Vrbo to detect illegal advertisements. The City Council pointed out that fines will be even higher than other local code violations because the city wants to avoid rental homes for tourists to continue.
Before this law, Saratoga already banned these rentals, but the law wasn’t clear enough. However, now the prohibition is explicit for homeowners to understand what they mustn’t do.
Economic context and other measures
A DemandSage report indicated that the average Airbnb host in the U.S. earns about $14,000 a year. The U.S. also has around 2.25 million Airbnb listings, more than any other country.
Among the many properties listed for short stays is even Michael Jordan’s former mansion in Illinois, valued at $9.5 million and able to host up to 12 guests.
Saratoga is not alone in taking action against short-term rentals. In Monterey County, California, officials are considering a proposal that would ban rentals of fewer than 30 days in certain residential areas. However, some property owners and workers such as cleaners and gardeners have warned that strict bans could hurt people who depend on these rentals for income.
So…
Can you imagine living in a quiet neighborhood and experiencing what Saratoga residents had to go through? I’m sure Saratoga neighbors are happy about this new rental law, but do you think this law is a positive change for the neighborhood and people depending on these rentals?