Del Mar, California, is poised to introduce its first-ever short-term rental (STR) ordinance, a move that could dramatically reshape the coastal city's rental landscape. After years of debate, legal challenges, and community input, the Del Mar City Council is set to vote on the proposed ordinance at its upcoming September 23 meeting. If approved, the new rules would cap the number of short-term rentals at 5% of the city's total housing stock, limiting STRs to 129 units.

The Pragmatic Solution

The ordinance represents a compromise after years of contentious discussions between residents, city officials, and STR operators. Under the proposed rules, existing short-term rentals will be allowed to continue operating, even if transferred through inheritance, and without the requirement that properties be the owner's primary residence. This provision was seen as a middle ground, balancing the need for regulation with respect for long-established STR businesses.

Del Mar Mayor Dave Druker acknowledged the mixed reactions to the proposed ordinance but emphasized the need for a pragmatic approach. “We’re going to put together an ordinance that will suffice for right now,” Druker said. “All of this is hypothetical, and future councils can make adjustments as the situation evolves.”

Resistance from STR Operators and Residents

Despite the compromises reached, not everyone is satisfied with the proposed regulations. Some STR operators and residents argue that the ordinance is still too restrictive and fear it could lead to the gradual phasing out of many short-term rentals. Opponents are particularly concerned that STRs could be lost when properties are sold or passed on to heirs who may not want to continue operating them.

“Del Mar has a long tradition of hosting tourists, vacationers, and horse racing fans through short-term rentals,” said one STR owner who has operated in the city for over a decade. “This ordinance threatens that tradition and could hurt our local economy.”

Critics also argue that by capping STRs at just 129 units, the ordinance could stifle the flexibility and income opportunities that short-term rentals provide to homeowners, many of whom rely on the extra revenue to maintain their properties in the high-cost area.

A City Caught Between Tourism and Housing Needs

Del Mar, the last coastal city in North County without a formal STR ordinance, has been navigating a complex path to regulation for years. The city has been operating under a forbearance policy, allowing STRs that existed before 2016 to continue while legal battles and regulatory delays played out. Much of the city’s regulatory struggle has involved heated disputes with the California Coastal Commission, which has pushed for more lenient regulations to preserve public access to the coast.

The city’s efforts to craft an STR ordinance were further delayed by the COVID-19 pandemic, which interrupted council meetings and shifted public priorities. Now, as the city prepares to enact these long-awaited rules, many see this as a pivotal moment in Del Mar’s history.

Privacy Concerns and Compliance Issues

One of the most contentious aspects of the proposed ordinance is the city’s approach to compliance and inspections. Originally, the city proposed regular inspections of STR properties to ensure they meet safety and operational standards. However, in response to concerns over privacy and perceived government overreach, the council opted to allow operators to submit self-inspection forms instead.

“We’ve tried to address the concerns of property owners who feel the city is intruding too much into their business,” said a city council member. “The self-inspection option is a way to ensure compliance without being overly burdensome.”

Looking Ahead: A Defining Vote for Del Mar

The outcome of the September 23 vote will be closely watched by both supporters and critics of the ordinance. For some, the new regulations represent a necessary step toward managing the city’s housing market and addressing the impact of STRs on local neighborhoods. For others, the rules threaten to undermine Del Mar’s reputation as a welcoming destination for tourists and short-term visitors.

As Del Mar stands at this crossroads, the upcoming council decision could set a precedent for other coastal communities grappling with similar issues. With both economic and community stakes high, the vote marks the culmination of years of legal and political wrangling, and the beginning of a new chapter in how Del Mar manages its short-term rental market.

“We’ve spent years debating this issue, and now it’s time to take action,” Mayor Druker said. “This ordinance is a starting point—something we can build on as we learn and adapt. But we need to make a decision and move forward.”

Whether Del Mar’s first STR ordinance will strike the right balance between regulation and economic vitality remains to be seen, but one thing is certain: the city is finally ready to take control of its short-term rental market.