39 °F Ocean City, US
December 3, 2024

Supporters, opponents want voice on rental regs

SOMERS POINT — City Council is moving ahead with new regulations for short-term rentals, and both those for and against them are anxious to see what they will entail.

Councilman Howard Dill, who sits on the Short Term Rental Committee, said city leaders hope to have an ordinance on the agenda for one of the two meetings this month, scheduled for 7 p.m. Feb. 9 and 23 at City Hall.

With the advent of online rental agencies driving up demand in shore towns, City Council added language to its municipal code in January 2021 requiring a registration certificate as well as contact information and the maximum number of occupants be provided to the Code Enforcement Office.

It requires the owner of each property to obtain a $100 mercantile license and yearly inspection, as well as perform a quarterly self-inspection.

Since that time, multiple people have spoken out against the practice — complaining mostly of traffic, trash and noise — but others have urged council to allow it to continue, citing increased customers for local businesses and other benefits to the city.

On Dec. 15, Council President Janice Johnston reported the Short-Term Rental Committee recommended:

— A 6 percent tax on all rentals

— A 50 percent increase in the cost of an annual mercantile license to $150, pending a successful inspection.

— An inspection fee cost of $250 and, in the case of failure, a $100 re-inspection fee. 

— The mercantile license must be displayed on the front of the property. 

— The owner must complete a certification of self-compliance stating they will abide by all local ordinances. 

— Owners will be fined $1,500 per violation. Three violations will result in the mercantile license being revoked. 

— A four-night minimum stay.

— Occupancy limits of two people per bedroom plus two. 

— Prohibiting use of basements, attics, trailers, swimming pools and individual rooms. 

During the public portion of the meeting, Catherine Powers of Crestview Drive, Robert Gabriel of Egg Harbor Township and Richard Ingman of Washington Township stated their disagreement with the recommendations. 

Powers, who owns a home she rents short-term, told the Sentinel that the owners just want to be part of the conversation.

Powers said several property owners have suggested getting together with the Short Term Rental Committee to discuss the upcoming regulation changes but were never contacted to do so.

“They did not embrace it,” she said.

Carmen Melendez of Bala Drive and Jenna Sullivan of Gibbs Avenue stated their concern with displaying their short-term rental property address and the proposed four-night minimum. 

Jill Middleton of Horter Avenue questioned if the short-term rental rules would apply to hotels, motels and other accommodations.

She said her Airbnb brings higher-caliber tourists to the city than some of the motels that do not have to pay the fees City Council is proposing for short-term rentals.

“It’s frustrating that they can join the platform and not adhere to same regulations,” Middleton said.

She said there are 20 to 30 people who are upset about what’s happening.

“The main thing is we want a voice and to be part of the discussion,” Middleton said.

She said that when members of the group expressed their concerns in December, they were met with hostility, characterizing the responses from city solicitor Tom Smith as “very aggressive.”

“I think the city’s approach to us has been dismissive and hostile rather than welcoming and part of the  process,” Middleton said.

Items the group would like to see included in the regulations include:

— A two-night minimum stay.

— A level playing field with hotels, motels and other accommodations.

— Reasonable fees. 

— Decisions based on data rather than emotions.

Middleton said she bought her home in 2019, fixed it up and planned to stay but got a really good job in another state.

“I knew it wasn’t going to be a long-term thing, but I couldn’t have an apartment and a house here,” she said, noting she was able to pull it off by renting her home on weekends through Airbnb.

Middleton said she leaves a welcome gift along with a list of local businesses she likes to patronize.

The former director of marketing for Hard Rock Atlantic City and Las Vegas said she is providing a five-star experience.

“Every casino I have worked for has won awards for hospitality,” she said. “They’re making us sound like squat houses.”

Further discussion took place during the council meeting Jan. 26. Dill told the audience that work is under way to address the issue, saying the committee has been searching through ordinances from other municipalities to “come up with something that is comparable and reasonable to the taxpayers.”

After the meeting, Dill said the committee is focusing mostly on regulatory issues and who is going to enforce the rules. He said there are many aspects to consider, such as the number of allowable occupants and vehicles and where they are kept.

While he wants to move forward soon, Dill said the ordinance must be comprehensive.

“When you come up with an ordinance, you have to come up with one that covers all of the issues,” he said. “I don’t care if it takes us six months, but I will not vote for an ordinance that does not address all the issues and recognize all of the problems and has some type of enforcement and fines associated with it.”

Dill wants to see penalties significant enough to discourage owners from ignoring property maintenance rules.

“I believe they are fine for the community as long as the restrictions are severe enough that people will follow them,” he said. “The key is making sure that we have rules in place, we have the enforcement in place and the violations will be more than enough to discourage people from allowing the behavior.”

He also wants to ensure that a representative is within 25 miles of each property to address any issues that may arise. 

Powers admitted that issues can arise at certain properties but said it’s the exception rather than the rule.

“There may be one bad in town of 26 of us,” she said of short-term renters from the city.

Like Middleton, she said her property is not a party spot but a vacation home for families where she offers a swimming pool and vets all of her clients.

Powers said a petition of support for short-term rentals collected several hundred signatures.

“We believe they are trying to make it so punitive that it’s too difficult to do,” Powers said.

By CRAIG D. SCHENCK/Sentinel staff

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