The Del Mar City Council introduced an ordinance Sept. 9 to regulate short-term rentals, which is now pending approval at the council’s next meeting on Sept. 23

The ordinance includes a 5% cap on short-term rentals citywide, which equals a maximum 129 units. In addition, existing short-term rentals will also be able to continue operating under their current ownership, and if they are transferred through inheritance.

Existing short-term rentals will also be exempt from a requirement that STRs have to be the primary residence of the owner. That carveout was developed in the years leading up to this ordinance after STR operators who own multiple properties in the city said it would be unfair if they suddenly had to shut down.

Several residents and STR operators who spoke during public comment said they felt the ordinance was too restrictive, and would result in the loss of many existing STRs when the current owners eventually sell or if they don’t have children who are willing or able to continue the business. Many have said to the council that the regulations undermine the city’s tradition of hosting horse racing fans, vacationers and other visitors who use STRs.

“We don’t know, also, the hypothetical of whether or not anybody is going to sell their house, is going to be able to continue on as an STR,” Del Mar Mayor Dave Druker said. “All of this is hypothetical. What we can do is what we know today and how we do it today. We’re going to put together an ordinance that will suffice for right now, and future councils have the infinite ability to make different changes, and make changes based upon what happens over the next couple years.”

Del Mar has been the only coastal North County city without an STR ordinance. The city has followed a forbearance policy over the last several years that allows STRs to operate if they can prove they were in operation prior to April 2016, when the council tried to place a moratorium on all short-term rentals. Since then, the process of crafting an ordinance has been beset with legal challenges, disputes with the California Coastal Commission and a long delay due to the Covid-19 pandemic.

Del Mar City Councilmember Terry Gaasterland made a motion to eliminate the owner occupancy requirement, but it did not receive a second from any of the other council members.

Some residents said the owner occupancy requirement was onerous and did not take into account that the owners of multiple properties in Del Mar who also live in the city themselves can quickly respond to concerns.

“That really spoke to me, and I think we need to be sensitive to what we are hearing nearly unanimously from all the people who came here to speak today,” Gaasterland said.

Some STR owners also said they thought the city’s inspection policy was too intrusive. In response, the council decided to modify it by allowing STR operators to provide the city with self inspection forms that show their properties comply with all rules and regulations.