Vacation Rentals in La Costa Banned

 

cartoon illustration of two politics shaking hands for agreement
cartoon illustration of two politics shaking hands for agreement

The City of Carlsbad, in an unprecedented move, has gerrymandered property lines in the city resulting in all of La Costa, with the exception of Omni La Costa and their Villas, being banned from vacation rental activity.

Owners at the La Costa Chateaus are banding together to protest this “regulatory taking” of real property assets and value. Many of the 791-square foot condos at the Chateaus have served as vacation and short term rentals for many years. They sit behind the gates of La Costa and were there long before anyone dreamed of privately-owned La Costa Villas, which Omni La Costa rents out as (you guessed it) vacation and short term rentals.

It would be a stretch on no one’s imagination that the Chateaus were ever considered to be in a residential neighborhood given their location behind the guarded gates of La Costa and situated directly between hotel rooms and the La Costa Tennis Courts. They are bounded on all sides by La Costa hotel buildings. And never has a school bus or crossing guard ever been seen anywhere near these buildings. The buildings are so closely tied to La Costa that the Resort contributed a very generous six-figure landscaping donation to the buildings so that their appearance could better blend with the resort.

Reaction from La Costa Chateau Owners

Even though the CCR’s for both Chateau Buildings have allowed for short term rentals sin 1972, the City of Carlsbad has decided to play favorites with the Resort and tread upon property rights of those who own in the Chateaus. That would explain why a number of owners there, including this writer, are considering legal action unless the city includes the Chateaus in their La Costa exemption. That is, unless, other gerrymandered property owners in Carlsbad decide to do something. Like file a class action of some sort against the City of Carlsbad and its misguided City Council.

All owners at the La Costa Chateau will likely face a decline in property values as a result of the City’s action per this exhaustive national study conducted by the National Association of Realtors (NAR). There is evidence, they report, that when existing vacation rentals are disallowed, values plummet:

“The value of a home that was used as a short-term rental prior to the adoption of restrictions, but is either prohibited or restricted from future use as a short-term rental, can be expected to decrease. That is particularly true in vacation destination communities, where homeowners often purchase second homes as investment properties.”

Adding to the damage will be long term income lost by those who have vacation rentals and spent thou$ands remodeling and furnishing them as such. Meanwhile, others are discussing the very constitutionality of the city’s move in enacting such legislation.

The Importance of CCR’s

It is important to understand that if one’s subdivision or neighborhood has CCR’s forbidding short term rentals, legal action can be taken against those who violate these rules. And those rules are what keeps most of Carlsbad real estate allowing long term rentals only. Areas like La Costa Valley, La Costa Oaks, Bressi Ranch and so many others all prohibit short term or vacation rentals.
Occasionally, we will have clients ask to relocate only to areas with no Covenants, Conditions and Restrictions (CCR’s), and we advise that there may be none of the protections typically provided in subdivisions and condo complexes with the CCR rules.
And that is the very reason these free-spirited clients request homes of this sort.

Several La Costa Chateau owners have suggested, as an experiment, that perhaps a front

Jazz Festival Parking at Chateaus

lawn weekend yard sale might be in order–especially on a holiday weekend. Would bargain hunters be allowed through the gates of La Costa? Would the Resort be as generous with its parking as La Costa Chateaus were with this past weekend’s Jazz Festival?

This is a rare rant from this writer, who has a far better-argued article about Carlsbad Vacation Rentals at this blog’s sister site SanDiegoPreviews.com
 –Roberta Murphy