Garden Grove

Short-term rentals: popular, illegal

SHORT-TERM rentals have proved to be lucrative for some, but are illegal in Garden Grove and are facing a crackdown (Shutterstock).

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

1 reply »

  1. STRs are actually wonderful to have in some areas that fell victims to unresolvable, unaddressed, past high density, tons of people and cars sardined into single family home. Most evident, during housing crisis and recession. The str properties are very often very quiet during week. Empty, duh. The visitors generally are out all day anyhow, just back for sleeping. What’s not to like? With the housing crisis we keep hearing of, our neighborhoods would be stuffed like urban “projects” otherwise. More people means more drama, more sewage, more water, more lack of parking. Quiet, peaceful. Most welcomed.

    Bigger problem up ahead is houses used as mini state hospitals, aka rehab. Out of state disability or SSI government check attached patients are lured and imported in to our well known Rehab Riviera because huge money can be from sniping government aid. People make bank on trafficking disabled people. Bank! When the checks run out, the people are kicked out. To the curb. The Santa Ana River had a lot of those. Part deux is us, taxpayers and judges and committees and legislators, finding and funding a solution to an organized crime created problem.

    The people hollering about the STRs seem to be GGers nearest the Anaheim city line. Hope it’s all legit, and if so, very sorry for your grief. Happy neighbors make happy neighborhoods, and different neighborhoods have different vibes. I just hope it’s not a pay off scheme by our powerful hotel industry. Get paid to holler is very much in vogue. And generally, not a We the People representation of how everyone feels. Methinks.

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