By CRAIG D. SCHENCK/Sentinel staff
SOMERS POINT — The city has seen an increase in short-term rentals and has welcomed the practice, but whether changes to the municipal code make it easier to operate one or exert control over the process depends on whom you ask.
It’s clear the practice is something the city wants to promote, but that being a good thing for the city is a view that was not shared by everyone on City Council.
In a 5-1 vote with one abstention, the city approved an ordinance Thursday, Jan. 28, that allows people to rent their homes for fewer than 30 days.
Known as short-term rentals, the practice has become popular across the nation and around the world as a way to vacation without staying in a costly hotel. Companies such as Airbnb, Vrbo and Booking.com specialize in matching supply with demand.
New language added to the ordinance eliminates the requirement for an inspection after each tenant turnover, requiring one just once a year and stipulating that the landlord must conduct quarterly self-inspections and keep records according to a form provided by the code enforcement officer. Rentals of fewer than two nights are prohibited and a maximum number of tenants must be established and adhered to.
Council President Janice Johnston introduced the ordinance Jan. 14, saying afterward that the city has seen an increase in the number of short-term rentals and “wanted to get a handle on it to have some control.”
“That ordinance was changed to make the rules a little stricter,” Johnston said, adding that there had been a few complaints last summer.
Councilman Sean McGuigan argued for a minimum rental period of 30 days. He said it would “allow anyone who wants to rent their property the opportunity to do so but would stop the ‘party house’ rental or constant weekend turnovers and all the ills that come with those.”
Those wishing to operate a short-term rental would be required to obtain a mercantile license for a $100 fee. McGuigan also argued that the fee is too low, noting costs start at $1,100 in Atlantic City.
He said Somers Point is unique in the area by not only allowing but encouraging the practice.
“This action is being taken even though all of our surrounding mainland governing bodies (Linwood, Northfield, Egg Harbor Township, Mays Landing) have all taken actions to protect their neighborhoods,” McGuigan wrote in an email.
Before the vote Thursday, McGuigan made clear his opposition.
“This ordinance is going to make it easier to operate a short-term rental property in this community,” he said at the meeting. “Now if you want those in our residential neighborhoods, vote for this ordinance. If you don’t want the troubles and ills that come with Airbnbs and short-term rentals, don’t vote for this ordinance.”
He disputed that the changes give the city more control over the practice.
“It was stated that this ordinance gives us more control and tightens up our regulations relative to rentals, and it does not do that,” he said.
McGuigan is afraid some rental units will turn into party spots, potentially annoying neighbors, and frequent turnover will do the same.
He said the city’s rental ordinance as written includes safeguards that are being removed, and “one of those things is an inspection every time a tenant leaves.”
“Our rental registration as it is now requires a list of names, has all kinds of requirements relative to the tenants in the units that has to be reported every time there is a change in tenant. This ordinance will eliminate that from short-term rentals,” he said, adding that he has argued against the changes since several meetings on the subject were held last year.
“I want to make it clear that if you vote for this you are voting to facilitate short-term rentals,” McGuigan said, asking for a roll call vote and members to indicate why they are voting one way or another.
Councilwoman Stacy Ferreri said she supports the changes.
“We’re a resort town and in Somers Point our slogan is ‘The Shore Starts Here,’” Ferreri said.
She said many families want to vacation at the shore and cannot afford expensive rentals on the island or hotels, and just want an inexpensive way to stay in a place together.
“We can offer that here in Somers Point,” she said, adding that the tenants will “go to our restaurants and go to our stores and spend money in our city, and that’s why I am for the short-term rentals in Somers Point.”
Ferreri said the city’s location lends itself well to the practice.
“We aren’t Linwood, we aren’t Northfield, we are Somers Point. We are a resort town. We are right at the Ninth Street bridge that goes over to Ocean City. We are along the water and I feel like it’s a benefit for us to be in the location that we are and offer that,” she said.
During public comment, Greg Sykora, chairman of the city’s Economic Development Advisory Committee, said that while McGuigan argues the changes make operating a short-term rental easier, it “actually gives the city more control by putting this into a mercantile license. The city now has the ability to revoke a mercantile license, so if people are doing the wrong thing or having parties or creating problems, the city now, which is doesn’t currently have, has the ability to take away the privilege of having short-term rentals. So I disagree with Mr. McGugian that it makes it easier. It actually gives the city more control and doesn’t punish the people who are doing it correctly.”
McGuigan asked solicitor Tom Smith whether the city has a rental ordinance and rental registration and whether that portion of the code gives it the ability to revoke a rental license for cause.
Smith appeared to have responded in the affirmative but not a word he said during the meeting could be heard by those participating via Zoom. It didn’t get better even after council members appeared to receive messages indicating that Smith was inaudible and let him know.
Mayor Jack Glasser, who could be heard, recused himself from any part in the changes, stating that he owns rental properties in the city. He ordinarily would sign the document after it was approved.
During the vote, Councilman Howard Dill abstained for the same reason. Councilwoman Karen Bruno, Councilman Joseph McCarrie, Councilman Mike Owen, Ferreri and Johnston all voted in the affirmative.
McCarrie said he talked to a resident who started operating an Airbnb and found that he had corporate clients “as opposed to party houses and things of that nature.”
“I wasn’t really 100 percent in favor of this but I also see the benefit to the city because this could bring in a different kind of client than we expect … . So I think there is another side to this Airbnb that we are not looking at,” McCarrie said, adding that the pandemic has put a lot of people out of work and they may need the rental income to help them survive.
“My responsibility is to look out for that individual in the city who needs a helping hand and needs something that’s going to help them move forward,” McCarrie said, noting “this is a swing and I think this is going to happen throughout the area. We can’t stop the motion of this, it’s getting bigger and bigger, so the best thing we can do is figure out how to manage it properly and try to make as many people in the city as happy as possible.”
McGuigan voted no, saying the city already is getting complaints about short-term rentals.
“I just want to apologize to the citizens that I haven’t been able to convince anyone to join me to oppose this,” McGuigan said.
Owen said he supports the change because it will draw new people to the city.
“They might rent short term but once they get a feel for where we live, I’ve seen, especially in Ward 2, where people will just want to buy a home,” he said.
Voting yes, Johnston got the last word.
“I don’t think this ordinance makes things easier. I think it makes the landlords follow the rules. I think short-term rentals have been here a very, very long time and I think they are here to stay and this does give us some control to enforce the rules,” she said.