Airbnb, other short-term rentals banned around Disneyland

June 30, 2016, 9:56 AM · If you're looking to book a place to stay for your next visit to the Disneyland Resort in southern California, your range of options just got a bit smaller. The City of Anaheim voted last night to ban short-term rentals, such as Airbnb, inside the city.

According to coverage from the Orange County Register, owners of the 383 permitted short-term rentals in the city will have to shut down within the next 18 months. Anaheim began limiting short-term rentals two years ago, requiring a registration fee and payment of the city's 15 percent hotel tax. Last year, the city capped the number of permits available to short-term rentals.

But that was not enough to satisfy local residents, who complained that many of the short-term rentals effectively were operating as hotels in residential neighborhoods. After also considering additional restrictions on the rentals, the city council voted last night for the ban.

The decision means that out-of-town visitors to the Disneyland Resort will either have to choose from among the many hotels in the area, or opt for a short-term rental farther from the parks, in another, nearby city. Hotels already offered the advantage of proximity to the Disneyland theme parks — dozens of hotels are located within walking distance of the front gates, while almost all short-term rentals were significantly farther away. But homes rented through Airbnb and VRBO typically offered more space at relatively lower prices, making them a potentially attractive alternative for larger families and groups.

The ban not only will help keep those visitors out of the city's residential areas, it should dissuade investors who have been driving up the price of homes in the city by buying houses to convert them into Airbnb rentals. But by limiting the options for tourists, it might also help drive up the price of hotel rooms in the city, assuming that other investors don't then switch to building more hotel inventory.

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Replies (17)

June 30, 2016 at 10:12 AM · The price they wanted for those Airbnb rentals was crazy anyways, way more than staying at the hotels close to the park.
June 30, 2016 at 10:19 AM · There goes my chance of starting a rental home business. I read about many horror stories where renters will trash the place, film adult movies, have huge parties, and disrespect the neighbors. Some will stay and not leave. Eviction is hard. Best to leave this business to the professionals.
June 30, 2016 at 11:08 AM · This is a classic case of greed and power. There is only one group here that is pushing this agenda, and that is the hotel chains. They send people from corporate to rile up the local residents and encourage them to push back on short-term rentals
June 30, 2016 at 12:23 PM · There's more to to it than that Anon. People simply don't want to discover that their home is next to an unzoned hotel with partying kids every weekend.

I have no problem with bone-fide "sharing", like renting a spare room short term; but if you're renting a whole place, that's not sharing, that's a hotel.

June 30, 2016 at 12:41 PM · Chad: What more did you add? I already said "have huge parties " and you said "partying kids every weekend". Whether or not it was unzoned, they were permitted before as short term rentals. Not anymore. A hotel is multi unit. Homes are not.
June 30, 2016 at 12:46 PM · I live across from 2, 2 are right next door, and one is behind me across the alley. I work nights, so I sleep until 8-9 am. I REGULARLY get the horn honking at 7 am, people basically yelling "hurry up" with the horn. Kids going in and out of the house 20-30 times (no exaggeration) slamming heavy doors. Neighbors telling me that kids running up and down stairs all hours of the day and night in the townhouse complex. Our pool does not stay clean and clear, 10 "vacationers" per house X 20 houses at the pool so we can't enjoy our own facilities. Ask them to quiet down and it's confrontational with an "I'm on vacation, I have no rules". These things are a cancer and the city DID THE RIGHT THING!! Thank You Mayor Tait, Council Member Brandman, and Council Member Vanderbuilt!! Council members Kring and Murray, you ladies are DONE! Thanks for the LACK of support.
June 30, 2016 at 1:09 PM · I was refering to the IP anonymous, not to yourself anon mouse, sorry for the confusion.

What happened was the problem became present enough to be on more peoples mind. It was a problem before, and that hasn't changed.

June 30, 2016 at 3:28 PM · As someone who lives in West Anaheim, and has had a large STR across the street, it has operated as a Hotel, it has 7 bedrooms, a large pool area, and usually multiple families rent it at one time. It does create issues, especially parking and takes away from the "residential" feel of the neighborhood. The area is rated Residential and no businesses are located nearby. STR's are businesses being run in residential neighborhoods, and the city of Anaheim, along with its lawyers determined that they had the right to enforce the zoning laws. If an investor wants to run a business renting out to tourists, fine, let them do it by following the rules, and getting the proper permits and safety measures, which means operating like a Hotel/Motel.
June 30, 2016 at 4:08 PM · First, some rebuttals-

Anon- People do crazy things inside the AirBNBs, but the thing is that if the home owner is uncomfortable with that behavior, they can simply not rent out for AirBNB. If someone is OK with their guests doing things like filming adult films or trashing the place, then the home owner should be allowed to rent out there place. If they are not comfortable with that behavior, then the home owner can simply not rent out their house on AirBNB.

Chad- Yes there could be parties, but there can also be parties regardless of whether the house is being rented out or not. For instance, how is having a next door neighbor who always rents out to people who throw parties different from having a next door neighbor who doesn't rent out but parties?

In my opinion, this is another example of a business manipulating to get what's in their best interest. If a neighborhood has a problem with AirBNB, that neighborhood can do something about it, such as banning AirBNB in that neighborhood. However, if people don't have a problem with it, what's the big deal?

The thing that angers me the most about this is that it eliminates competition. If the city had chosen instead to embrace AirBNB, people would've been using AirBNB instead of Disney hotels, and therefore Disney hotels would have to lower prices. Now, Disney can keep raising their prices, as they have eliminated their competition through government. In addition, this will probably eliminate a lot of people's income, which is pretty bad too.

So at the end of the day, Disney hotels are more expensive and jobs are lost. Wow.

June 30, 2016 at 4:18 PM · We do not have any theme parks in Chicago and it is the same argument. Corporations are buying up condos and jacking up the prices.

Then again, Walt Disney was never really too thrilled with the hotels around his Disneyland. It shouldn't really surprise anybody.

June 30, 2016 at 5:24 PM · Juan: It's not always about the homeowner. You can't disturb the neighbors. As for competition, Disney will charge whatever it can and their rates has no effect. Disney doesn't have enough property in Anaheim to make a difference and I don't think they care. There are enough high income people to pay Disney's prices.
June 30, 2016 at 6:18 PM · >>>>Chad- Yes there could be parties, but there can also be parties regardless of whether the house is being rented out or not. For instance, how is having a next door neighbor who always rents out to people who throw parties different from having a next door neighbor who doesn't rent out but parties?

The difference is the scale. A person who owns their own home will likely only have a few. A place that is purely to rent out is more likely to have more. Evidently this is the case as the increase in noise, traffic, anti social behaviour, and other effects are the reason why residents push their representatives to push this legislation.

June 30, 2016 at 7:26 PM · I thought this was a ploy by disney at first.
June 30, 2016 at 10:35 PM · Agreeing with Juan here. If people are renting airBnB for parties, they're generally not going to do it in Anaheim. This is simply a ploy by local hoteliers (not Disney, but maybe with their support) to crush out local competition.

Next January our family are staying in Anaheim at an airBnB across the road from the Disney carpark. For

June 30, 2016 at 10:47 PM · We've had the same problem in some neighborhoods in my city.

If idiots are throwing parties all night, whether they're renting or not, call the cops!

July 1, 2016 at 3:03 AM · It seems to me that many of these "sharing economy" companies thrive in part by creating an unfair playing field. I just looked at 8 Airbnb locations located in Anaheim and none of them include the required 15% hotel taxes. I applaud the City of Anaheim for banning this activity.

It's a lot easier to be profitable when you don't adhere to the laws that your competitors must follow. When you rent out an entire house/condo, you're not're running a short-term lodging company.

July 1, 2016 at 6:46 AM · ...and once again big business kills the little guy trying to make an extra couple of bucks in our our long term cruddy economy.

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