Housing in California is a hot topic, particularly when the short-term rentals are thrown into the mix. Those opposed to short-term rentals often argue that it removes permanent housing stock from the market and that such rentals negatively impact communities and reduce surrounding property values due to the temporary character of the residents, constant turn-over, noise, and overuse. On the other hand, short-term rentals may be an opportunity to maximize income from one's property, and many investors purchase properties based on their income-generating potential.
Cities have been successful in implementing bans or severe restrictions on short-term housing rentals, despite multiple challenges throughout California. However, when those bans take place in coastal communities, local jurisdictions may have a new obstacle to overcome: the California Coastal Act and its overriding goal of providing visitor access to California's coast. In a recent Court of Appeal decision (which the Supreme Court declined to take-up), Keen v. City of...
