Short Term Rental Moratorium

Published On: October 13, 2023|Categories: Blog, Mammoth Real Estate|Tags: housing, lakes, mammoth, moratorium, rentals, short term rental, str, workforce|

MAMMOTH LAKES MORATORIUM: The Town of Mammoth Lakes to consider a moratorium on short term rentals.

(10/13/2023) – The Town of Mammoth Lakes Staff is requesting Town Council to comment and provide direction on proposed short-term rental program updates and consider whether to adopt urgency ordinance establishing a 45-day moratorium on the issuance of new short-term rental registration certificates pursuant to Town of Mammoth Lakes Municipal Code Title 5. The Town Council Meeting date set to discuss this proposal is October 18th, 2023.

The areas of greatest potential impact are those who do not currently have a TOT rental certification and are located in RMF-2 zoning. On a high level, the purpose of the proposed moratorium is to open up more potential properties to long-term rentals for Mammoth’s local workforce. See more in the Sheet Article Moratorium STRs Anxiety

For Details, public comments, and proposed Ordinance in see Section 10.2 of Policy Matters

(Update as of 12.22.2023) – As expected, the Town of Mammoth Lakes recently extended the “45-Day” Moratorium that initially passed on October 18th, 2023. The moratorium has now been extended to May of 2024. As stated previously, this is a moratorium on the issuance of new TOT Certificates (Short Term Rental Licenses). This applies to owners looking to rent their properties on a short-term basis within the RMF- 2 zones and certain zones along Old Mammoth Road and Main Street.

AGAIN… The Town Council chambers were filled primarily with residents/owners opposing the agenda item, numerous letters were written expressing frustration, and online comments added opposition to this extension. There are strong arguments that the outcomes of this moratorium will have little to no benefit to workforce housing and that this exercise will only detract from more productive avenues that would better serve the workforce community. It was AGAIN evident the Council was going to pass this matter regardless of community input. Town Council Members Sarah Rea, Chris Bubser, John Wentworth and Amanda Rice were council members in favor of extending the moratorium.

Some challenges I see with this proposal:

What are the impacts going to be to property values of those located in RMF-2 zoning? Shoot us an email and we will let you know if your property is in this zoning.
Properties lacking a TOT Certificate, and targeted under this proposal, are not currently taking from the workforce rental pool as they aren’t currently renting their properties on short term basis.
The Town and State should place greater emphasis on concerns related to Insurance Costs, Interest Rates, and taxes that are being passed through to long term renters.
The State of California is threatening to bring 15% tax short on short-term rentals. Consider the impacts on tourism if this tax and the local moratorium is passed.
Most owners with properties on a short-term rental program, or possibly looking to rent on a short-term basis, are second homeowners looking to use their property occasionally when they visit Mammoth. Having their property as a long-term rental would eliminate their ability to use their property, thus defeating the owner’s purpose of owning a second home in the area. In short, the owner will still not be putting their property on a long-term program if they can’t use it.
The State of California has made long-term rentals unattractive to landlords due to landlord’s limitations on rent increases and restrictions on evictions. Many would rather see their property sit vacant than rent long term under current State laws.
Is the 45-Day moratorium nothing more than a means to prevent owners from obtaining TOT Certificates while the Town works to put a more permanent prohibition in place?
Here is Granicus article about Short Term Rental Bans Gone Wrong
TOT revenue is the primary source of revenue for the Town, what will the plan for current services with a proposed drop in revenue.

If you would like to provide comments to the Town Council on this matter, submit an email to the Town Clerk at clerk@townofmammothlakes.ca.gov

Town Council Members