Frequently Asked Questions
There are some misconceptions about short-term rentals that have created false narratives.
We think it’s important to set the record straight so that Newport Beach residents have all the facts about the importance of short-term vacation rentals in our City.
The majority of guests in Short Term Rentals are families that need kitchens and yards for kids and pets, or are visiting members of local families that just don’t have room for them to stay in their homes. Some families stay for extended periods of time while their Newport Beach homes are being renovated. Short Term Rentals are also utilized by professionals doing short-term assignments in the area such as doctors and traveling nurses.
Short Term Rentals pay taxes to the City of Newport Beach in order to operate Short Term Rentals – taxes businesses, except hotels, do not pay.
The California Coastal Commission will have the ultimate authority to approve any Short Term Rental Ordinance that affects Short Term Rentals in the Newport Beach Coastal Zone.
Short Term Rentals offer families facilities that they can not get in a normal hotel room, such as free laundry facilities, full kitchens, barbecues, family board games, multiple bedrooms and yards. These amenities make Newport Beach affordable to families that otherwise would not visit our City.
Are there enforcement laws that protect neighbors from excessive noise, large parties and other nuisances?
Yes, the City of Newport Beach has Code Enforcement Personnel assigned to monitor STRs. The Short Term Rental Permits provide the City the right to terminate Short Term Rentals that do not comply with the City’s rules and regulations that prohibit excessive noise and other neighborhood disruptions.
Do Short Term Rentals lower local property values?
No, to be a successful Short Term Rental Owner you need to keep your property well maintained. STR owners have typically upgraded their properties, unlike some regular neighbors. These STR property improvements increase land values for all the neighbors. There is NO evidence that STRs have devalued any property values in any area of Newport Beach.
Are Short Term Rental Properties owned by out of town investors, who have no ties to Newport Beach?
No, the vast majority of the Short Term Rental units in Newport Beach are owned and operated by local folks, many are residents of Newport Beach. STR owners care about their neighborhoods, since they have made considerable monetary investments in their properties and have a vested interest to maintain and increase the local property values in Newport Beach.
Is renting short term (renting for under 30 days) a privilege or a property right?
Several members of the Newport Beach City Council have said that renting for under 30 days at a time is a privilege provided by the City Council and can be taken away by the City Council. However the California Coastal Commission has weighed in on this subject on July 13, 2018 in their letter to San Diego City Council. Here is their quote “As this office has stated before, this agency has generally interpreted local zoning ordinances in a broad fashion and found that short term rentals or vacation rentals are a form of residential use, permitted by right, in any residentially zoned area unless such uses are specifically prohibited or otherwise restricted.”
Code Enforcement Violations
The table above displays the number of Code Enforcement Violations there have been contrasted with how many nights booked (1,545 vacation rentals X average nights booked per year 63% = 230 nights booked for each unit. Total nights booked = 355,272 nights booked in Newport Beach per year) – 136 complaints divided by 355,272 nights booked = .00038% complaint rate.