Solvang Council Moves to Regulate Short Term Rentals in VMU District

The Solvang City Council convened on August 11, 2025, to address pressing issues surrounding short-term rentals within the community. The meeting focused on the regulation of these rentals, particularly in relation to the Village Mixed Use (VMU) zone, as council members expressed concerns about maintaining the character of the neighborhood while accommodating visitors.

The discussion began with council members acknowledging the challenges of balancing residential needs with the demand for short-term rental options. One member emphasized the importance of limiting short-term rentals to the VMU area, suggesting that this would help manage the impact on local neighborhoods. The sentiment was echoed by others who noted that while short-term rentals can provide additional income for homeowners, they should not disrupt the residential nature of the community.

A proposal emerged to create a code that would restrict non-owner-occupied short-term rentals to the VMU, while also considering a compromise that would allow for homestays outside of this zone. Homestays would require the property owner to be present during certain hours, thereby ensuring a level of oversight and community integration. This approach aims to provide visitors with lodging options while maintaining neighborhood integrity.

Council members discussed the potential for implementing caps and regulations on short-term rentals, including the possibility of limiting new construction in this category. They recognized the need for strict enforcement measures to prevent issues such as noise and parking problems associated with party houses, which have been a concern for residents.

The council agreed to direct city staff to draft an ordinance that would formalize these regulations, focusing initially on the VMU area. Additionally, they expressed a willingness to explore the feasibility of allowing homestays outside the VMU, with the understanding that these would come with specific conditions to ensure compliance.

In conclusion, the meeting highlighted the council's commitment to finding a balanced solution that addresses the needs of both residents and visitors. The next steps involve drafting the proposed regulations and evaluating the potential for homestays, with further discussions anticipated in the coming month.