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Goleta’s Next Hot Housing Debate: What Happens to Short-Term Rentals?

Goleta’s Next Hot Housing Debate: What Happens to Short-Term Rentals?

Tomorrow, the Goleta City Council will meet to discuss major changes to how short-term vacation rentals (STRs) are regulated—and the outcome could reshape what’s allowed for local homeowners and housing providers.

These updates could significantly impact local homeowners, renters, and property managers. Here’s a breakdown of what’s being proposed—and where we stand.

What’s Happening in Goleta?

In 2023, Goleta adopted its updated Housing Element, a strategic plan for how the city will meet its housing needs through 2031. Two early action items—Subprograms HE 1.7 and HE 1.8—target short-term rentals and underused housing as potential factors in the city’s tight housing supply.

These updates could have a real impact on local homeowners, renters, and housing providers. If you’d like to read the full staff report and agenda for yourself, here’s the link:
View the full agenda and breakdown (PDF)

Here’s a simple summary of what’s on the table—and where we stand.

A Simple Breakdown of the Recommendations

Here’s a quick summary of key proposals:

✅ City Staff and SBAOR Support

  • Collect better data on STRs—who’s operating, how often, and where.

  • Enforce safety codes and require annual license renewals.

  • Encourage development of hotels and other accommodations that don’t reduce the housing stock.

  • Create a “Good Neighbor” database to reduce nuisance complaints.

⚠️ Staff and SBAOR Caution

  • No-Fault Eviction Ban: Would prohibit STR use after a no-fault eviction. SBAOR argues this isn’t a current problem in Goleta and is already covered by state law.

  • 1-Year Waiting Period: Would block new owners from getting an STR license for 12 months. SBAOR views this as an overreach and possible regulatory taking.

  • Geographic Limits & Density Caps: Could limit STRs by neighborhood or require spacing between rentals. SBAOR warns this could hurt property values and create an uneven playing field.

  • 90-Day Lease Registry: Proposes a rental registry for medium-term leases (31–90 days). SBAOR sees privacy and cost concerns here, especially since Goleta already participates in a regional housing mediation program.

Mission City’s Take

We understand the need to preserve long-term housing—but broad rules can have unintended consequences. Goleta’s STR market is small, with most operators renting part-time to offset rising costs.

Well-meaning owners could get swept up in new restrictions if the City doesn’t differentiate between corporate investors and local homeowners.


Why It Matters

Local housing decisions today shape what our community looks like tomorrow. With Goleta’s housing market already under pressure, it’s critical that we get this right. At Mission City, we’re not just property managers—we’re long-time locals and advocates for smart policy that works in the real world.

As a member of SBAOR’s Government Relations Committee, we’re committed to ensuring that landlord voices are heard in these conversations.


Stay Informed. Stay Connected.

Housing policy is changing fast across the South Coast. That’s why we’re putting together a Free Landlord Compliance Guide for Santa Barbara County, coming soon! 

It’ll include:

  • Plain-English summaries of the latest laws (including AB 12, AB 2801, and local ordinances),

  • Self-audit tools to check your compliance

It can feel overwhelming—we get it. If you ever want to talk through these changes or ask questions, we’re here to help.
Click here to schedule a call with us and let’s figure it out together.


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