Councilmember Pearce Calls for Short Term Rental Oversight

From the Office of the Councilmember: After hearing from constituents and participating in the Mayor’s Housing Study session, Councilmember Jeannine Pearce is taking a bold step to address the challenges associated with the unregulated Short Term Rental (STR) industry in Long Beach.

At Monday’s City Council Meeting, Councilmember Pearce, along with Vice Mayor Richardson, will be requesting the City Manager to work with the City Attorney to review and report back on next steps for drafting an ordinance to allow and regulate STRs within 30-60 days.

Currently, STRs such as Airbnb, HomeAway, and VRBO are prohibited in Long Beach according to Long Beach Municipal Code 21.51.270. Despite this, there are approximately 1,120 units of this type currently available in the City, with the majority of units located in the Second District. An estimated 58% or 425 of these listings, are being rented out as entire homes/apartment units (insideairbnb.com).

“The pressure that’s placed on Long Beach’s already tight housing market by Short Term Rentals has begun to pose a challenge to our residents,” claims Councilmember Pearce, “We are already experiencing a 2% vacancy rate, and if we don’t begin to look for a middle ground, even more families will be priced out of our city.”
Pearce proposes options for an ordinance that would include the condition that the rentals be considered the owner's primary residence as set forth in LBMC, that owners can rent their unit/home for no more than 90 non-consecutive days in a calendar year, and that a Transient Occupancy Tax (TOT) will be collected on all room rentals under 30 days. Councilmember Pearce is joined by co-signers Vice Mayor Rex Richardson, Councilwoman Lena Gonzalez, and Councilmember Dee Andrews.

“Assuming a large hotel is around 300 rooms, the number of current listings in Long Beach constitute 3-4 large hotels worth of listings, leading to a significant loss in potential TOT revenue for the City.” States Imran Ahmed, General Manager of the Marriott Hotel in Long Beach, “With cooperation between the Short Term Rental companies and the city, this could be a partnership that benefits residents, booking companies, tourists and the city as a whole.”

With Councilmember Pearce’s proposal, STRs will be allowed to operate within the city in a way that promotes safety, reduces the negative impacts on neighborhoods and the housing market, all while capitalizing on the economic benefit it brings to the City.

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