Jul 30, 2014
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City Steps Up Enforcement of Leasing Rules

It is illegal to rent property by the day or week; two owners recently targeted.

City Steps Up Enforcement of Leasing Rules

Coronado is cracking down on property owners who offer short-term rentals.

People who lease their homes or condominiums for less than 26 days face hefty fines, up to $2,500 per day, according to City Manager Blair King.

The city has brought court actions in two incidents. One owner was blocked from leasing on a short-term basis by a temporary restraining order. The other owners signed an agreement stating that they would comply with the ordinance in the future.

If either reneges, they could be taken back to court and face penalties, Assistant City Manager Thomas Ritter said. Both situations came to the city’s attention because neighbors complained, he added. 

The short-term nature of the stays can be hard on residents and businesses alike, King said.

“It’s a quality-of-life issue," he said. "Not only do they disrupt neighborhoods and annoy neighbors, they are also unfair to local hotels and motels."

Though the city loses out when tourists stay in residences – hotels have to pay a transient occupancy tax, which is passed on to consumers – King said that is not the reason for more stringent enforcement.

“We’re not worried about the loss of revenues as much as we are about what it's doing to the character of local neighborhoods,” King said.

Many Realtors and agencies openly advertise short-term availability.

One website, for example, lists cottages and condos in Coronado that rent from $1,250 to $10,000 weekly and from $199 to $3,000 a night.

City officials are aware of the listings and the opportunity for locals to make extra money, especially during the popular summer months. They don't expect to stop the practice completely.

“We don’t have the resources to go after everybody, so we’re singling out a few people to send a message,” King said.

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