by Kevin Cody
Despite short term vacation rentals (STVRs) in residential neighborhoods being illegal in Hermosa Beach, approximately 150 are presently advertised on STVR websites, Hermosa Beach Community Development Director Carrie Tai told the city council at its Tuesday, December 12 meeting. (STVRs are defined as rentals of fewer than 30 days.)
Advertising and operating an illegal short term rental can result in fines of up to $15,000. But enforcing the bans has been difficult because their advertisements rarely list addresses, and because the advertisement language is often “nuanced,” Tai said. The advertisements may say the minimum stay is 30 days, but allow reservations of fewer than 30 days, she explained. Courts have been reluctant to rule against STVR owners in cases where the advertised rental lengths are conflicting, Tai added.
To strengthen the city’s ordinance banning STVRs in residential neighborhood, Tai proposed the council add the following language to the ordinance: “In the event that an advertisement has conflicting information regarding a prohibited rental, the advertisement for the shorter amount of time shall control.”
The council unanimously agreed to the ordinance revision.
According to the STVR tracking site AirDNA, the average daily rate for a Hermosa Beach STVR is $430, and the average occupancy rate is 60 percent. Strand STVRs rent for as much as $2,000 a day.
To help locate illegal STVRs, the city recently retained Granicus Host Compliance. The company’s website says it identifies the addresses of unregistered STVRs by using “big data and artificial intelligence” to monitor over 60 STVR online sites, among them airbnb and Vrbo. The site says it also estimates occupancy rates, and rental revenue, and provides a 24/7 hotline for neighbors to report STVR complaints. According to the city’s website, the identity of residents who report an illegal STVR are kept confidential.
Since retaining Granicus, the city has issued 10 to 12 citations monthly for illegal STVRs, Tai told the council.
STVRs are legal in Hermosa’s commercial districts along the highway and in the downtown. STVRs pay the city’s 14 percent Transient Occupancy Tax, and a $1,589 annual permit fee. ER
