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Council introduces short‑term rental rules, limiting unhosted stays and capping permits

National City City Council · August 19, 2025
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Summary

National City moved to introduce a short‑term rental ordinance that would cap permits, limit unhosted stays to 90 days and add permit requirements and distance/host‑residence tests; council unanimously approved introduction and asked staff for implementation clarity.

National City — The City Council unanimously voted to introduce an ordinance regulating short‑term rentals, aiming to balance neighborhood stability with visitor‑economy benefits. Staff recommended a citywide cap of 180 short‑term rental permits (no more than 60 per council district), a 90‑day limit on unhosted rentals, a permit fee and rules requiring the operator’s primary residence to be in the city or within a quarter mile of the rental.

Staff said the cap and per‑district limit are meant to distribute permits so no single district is saturated. The draft also allows “hosted” rentals without a day‑limit (where the owner occupies a nearby property) and contemplates criminal‑background checks for operators if council wants that provision. Staff cautioned that background checks may be administratively burdensome for police to run for every permit and asked for direction on expectations.

Councilmembers and community members cited neighborhood public‑safety incidents at some short‑term rentals — including a shooting earlier in the year and alleged trafficking activity at another property — as reasons to regulate strongly. Councilmember Jose Rodriguez emphasized public‑safety risks, saying the ordinance was in response to incidents that had frightened neighbors near schools. Supporters argued that a permit system and day‑limits would help ensure rentals do not become de facto party houses or permanent short‑term housing that reduces long‑term rental availability.

Critics warned that a 90‑day cap on unhosted listings could make some short‑term uses financially infeasible and push properties vacant or into non‑permitted uses. Staff and several councilmembers asked for realistic expectations about revenue projections tied to transient‑occupancy tax (TOT) and noted that market dynamics will determine nightly rates and occupancy.

The council approved introduction and directed staff to return with clarified language and operational recommendations, including any background‑check logistics, fee proposals and enforcement procedures. The ordinance will come back for adoption at a later meeting.