Airbnb, other short-term rentals targeted for steep fines in Long Beach

Long Beach officials are proposing regulations to prohibit short-term housing rentals and add steep fines to crack down on services like Airbnb in the city. 

The proposal also would make it illegal to rent out pools, off-street parking spaces, sheds, lawns and detached garages. 

The city doesn't explicitly prohibit short-term rentals, but transient rentals of properties other than hotels generally are not on the list of permitted usages under the zoning code, according to city officials. This proposal would change that. 

At a hearing Tuesday, about a dozen homeowners who list their homes on Airbnb spoke out against the proposal saying it would hurt them financially. 

“It helps us pay our bills, but we're not making millions,” said Candy McLaughlin, who said she has rented a room in her home via Airbnb for seven years.

“I'm able to pay my bills as a single mother. I'm able to help my children up at school. I'm able to pay my mortgage barely and be able to keep my home," she said at the hearing.

Hosts told the City Council they provide a beneficial service to the local economy, serving a market that hotels don't.

Speakers also questioned whether data existed to support city officials' contentions that short-term rentals caused more problems than long-term rentals. 

The City Council kept the hearing open and did not vote on the proposal Tuesday.

Current fines top out at $1,250 for violations of both zoning and building codes, according to a town official, but under the proposal, fines can begin as high as $2,500 and increase up to $30,000 after a third offense within seven years.

A short-term rental would be for any period fewer than 28 days, according to the proposal. Convictions can result in up to 15 days of jail time. 

“Fines are used to deter people from breaking the law,” City Council President Brendan Finn said in an interview Tuesday. “The intent here is to stop this proliferation of Airbnbs in the city.”

Finn said the city isn’t trying to bankrupt property owners.

“We're not in the business of trying to hurt anybody financially,” Finn said. “If you obey the rules, there are no problems.”

Finn said short-term rentals were hurting the seasonal rental market, comparing Long Beach to areas in “ski country.”

“Airbnbs are so lucrative to the people who own those homes, they no longer feel that they have to do a seasonal rental,” Finn said. “They'll just do an Airbnb rental and make more money and that's happened here in Long Beach."

Finn said Airbnbs have driven up rents and made Long Beach less affordable but provided no data to support his claim.

According to the real estate website Zillow, the median monthly rent in Long Beach is $3,500. Zillow data shows that for most of 2024, median monthly rents have been slightly lower than they were in 2023. 

Airbnb officials said the proposed rules were out of step with other municipalities’ regulations.

“The proposed rules are an extreme outlier compared to most short-term rental laws across the country,” Nathan Rotman, policy lead for Airbnb Canada, said in a statement Tuesday. “We welcome the opportunity to work with the Long Beach City Council on fair and balanced rules that allow resident hosts to continue to earn additional income, while also bringing an influx of tourism spending to support local businesses in the community.”

The company declined to say how many listings it had in Long Beach. A search on Airbnb Monday showed dozens of listings for short-term rentals in late August and early September.

The business community is mixed on the proposal, Long Beach Chamber of Commerce Chairwoman Leah Tozer said in an interview Monday.

“You're bringing in people, a little bit more of a vacation where people are coming in and spending a day or two coming to our shops and bringing in commerce,” Tozer said. “But the flip side of that, to some of our members who mostly are residents, people don't want short-term stays next to their house.”

Tozer, who is also a real estate agent, said that with some regulation and special permitting, “people could get behind” allowing short-term rentals.

City officials said people renting their driveways for the weekend while parking their own vehicles on the street exacerbates existing parking problems.

“It is good when residents use their own off-street parking because that enables other parking spaces to become available to visitors and friends who are visiting,” Finn said.

City spokesman John McNally said renting out a driveway would require a variance as a commercial use.

The proposal also would make it illegal for short-term rentals to be advertised, including online. The code would allow the city to pursue violations by individuals as well as companies and organizations.

McNally said the city is not looking to bring charges against online listing companies like Airbnb. “The intent is not to be going after the entities themselves, just the owners of the residences.” 

Last year, Brookhaven, Glen Cove and Southold also enacted rules to ban or limit short-term rentals.