It’s sort of a dubious honor.
A firm called IBX 1031, a subsidiary of Fidelity National Financial Co., has declared Garden Grove to be the fourth-best city in the United States to invest in an Airbnb – a sort of business also known as short-term rentals.
The problem is that short-term rentals – under 30 days – are illegal in Garden Grove.
According to IBX 1031, Garden Grove’s Airbnb’s offer a potential annual profit of $29,772, with a daily rental rate of $266 a day and with a 76 percent occupancy rate.
However, not only are such businesses illegal, but the city council recently passed an ordinance cracking down on them, banning the advertising of such operations and establishing a fine schedule for building code violations which could go as high as $2300.
Short-term term rentals have boomed in recent years in the northeastern part of the city because of their proximity to the Disney parks and Anaheim Convention Center.
However, many neighbors have complained that short-term rentals have caused problems with traffic, parking, litter and noise. Additionally, STRs arguably take business away from legitimate hotels, whose “bed tax” proceeds make up a big chunk of the city’s operating revenue.
For the curious, the top-ranked city was Moreno Valley, followed by Virginia Beach, Va, Pasadena, Tex., and – in fifth – Fremont, also in California.
Boston, New York and Los Angeles have passed ordinances banning or restricting STRs, as have several Orange County cities.
Categories: Garden Grove