Santa Barbara Vacation Rental Company Owner Speaks Out After City Issues Subpoena

The owner of a Santa Barbara vacation rental company is speaking out after the city served her with a subpoena.

Melissa Pierson is one of four vacation rental company owners ordered to hand over transaction records to the city as it begins a crackdown on short-term vacation rentals.

Pierson said her company, Coastal Hideaways has nothing to hide and has always followed the rules during her 20 years in business.

“The guests that come to Santa Barbara have to pay a TOT. We collect that tax every month and send that to the city,” Pierson said.

On top of the 12% tax, Pierson said her clients pay the city an additional two dollars per day.

“That goes towards marketing Santa Barbara and promoting tourists into the area which is what the city wants.”

By eliminating short term rentals, Pierson said the city is shooting itself in the foot.

“It’s millions of dollars that the city will lose if they don’t allow vacation rentals on a short term basis.”

Pierson also questions why the city was collecting the tax in the first place.

“If the ordinance was really in place, that means they took money illegally. Are they going to give that money back? They should not have collected it if it wasn’t legal. They shouldn’t have issued business licenses.”

Pierson said she understands why some city residents feel short term rentals are disruptive to their neighborhoods.

Pierson said her clients follow strict rules.

“We have a very tight policy. We do not allow any weddings, any events, or any catering. We limit cars and people at any given time. If they violate that contract at any time during their stay, they are asked to depart immediately and they forfeit all their money.”

Pierson believes short term rentals in the city should be allowed but strictly monitored.

“The screening process needs to be tightened up. We have a beautiful city here. I would really like to work with the city. If you want to do short term rentals, these are our rules. It would be a win win for all of us.”