Regulations governing vacation rentals in Pismo Beach could soon be stricter.
The Planning Commission voted 4-0 last week to approve an ordinance that regulates where vacation rentals can be, and how much parking space each home needs.
The issue has long been a concern of city officials and residents, who had at times clashed over where the rentals are allowed and if there was enough enforcement of illegal ones.
The ordinance will go to the City Council for approval early next year. If approved, the California Coastal Commission will give it certification.
Currently, vacation rentals only are supposed to exist in downtown areas and near hotels. Owners are not required to have a permit. Under the new ordinance, new rentals will require a permit.
It's unclear how many vacation rentals there are in Pismo Beach. But city finance records showed that a transient-occupancy tax was paid on 447 units in the 2006-07 fiscal year. Figures were not available for the 2007-08 fiscal year.
The new ordinance allows rentals in the downtown areas but prohibits them in residential areas such as Spyglass Park, Harbor View and Franklin streets, and around the lower part of Pismo Heights.
There are some vacation rentals in those areas, although they are not supposed to be there, said Michael Gruver, a city planner. A code-enforcement officer has been instructed to contact those homeowners, and those who don't comply could be fined or have their water turned off, Gruver said.
Some residents have complained that renters make too much noise, have too many vehicles, and that vacation rentals are businesses that don't belong in family neighborhoods.
"Right now, [the homeowners] are not there, and we are. And they're profiting from our quiet neighborhood," resident John Roullard said.
But some homeowners and property managers disagree. At a recent meeting, a few said their rentals have no negative effect on neighborhoods, and that they contribute to the city's bed-tax revenue.
The bed tax is a transient-occupancy tax collected at all lodging facilities in the city. For the 2007-08 fiscal year, vacation rentals brought in $209,000 of the $6.1 million in occupancy-tax revenue, according to city financial records.
Erin Down, a representative from Coastal Vacation Rentals, said some residential areas close to downtown should be exempt from the ban.
"I think that you're making a big mistake," Down told the commission.
Vacation rentals often appeal to groups of four to 14 people who can stay more comfortably and economically in a home or condo than in a hotel.
Vacation rentals would need to have stricter parking requirements. At least one parking space would be required for each bedroom. Any dwelling larger than 600 square feet would need at least two parking spaces.
All would need a city-issued permit and business license and charge a 10% bed tax.
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