Lewes discusses rentals

As temperatures begin to drop and tourist season slows, Lewes Mayor and City Council is beginning to look at changes to its policies on rentals.

The city’s existing code groups all rentals into one category. Anyone who rents their home, townhouse or condo must obtain a rental license, then pay the city a gross rental receipts tax each year.

City Manager Ann Marie Townshend thinks it might be time to differentiate between short-term and long-term rentals. Short-term rentals, in particular, create more of a burden for town services and have a greater impact on full-time neighbors.

“I think one thing we can agree on is that each year, Lewes becomes more discovered,” she said. “It seems like during the pandemic it’s grown significantly.”

Townshend discussed the idea during a Sept. 27 workshop at city hall. Mayor Ted Becker said he wants to make it clear that the city is not trying to eliminate short-term rentals.

One of the challenges the city faces as it becomes more popular is trash and recycling collection. The city has been trying to get residents and visitors to properly recycle in order to avoid costly tipping fees if too much trash is mixed in with recycling, and among the biggest offenders are short-term rental units. Townshend said the streets department staff spends a lot of time checking recycling cans before dumping them into the truck.

“Unfortunately, the recycling rules are nuanced,” she said. “It’s really a challenge with a stable population to get people to understand what can and cannot be recycled.”

She said the city now sends a trash truck behind the recycling truck to pick up whatever cannot be recycled.

The impact of short-term rentals on neighbors is also a factor to consider, Townshend said. With limited or no parking available in some parts of town, she said, short-term rentals can have a major effect on quality of life.

Church Street resident Don Long said he used to walk out onto his stoop and see a family with three kids as well as other neighbors.

“Now we’re surrounded by Airbnbs,” he said. “I’m not against it. I’m here to support the effort to find a solution we can all live with.”

Long said these residential homes are being used for a commercial purpose. He said insurance companies look at short-term rentals as a commercial use.

“That tells you something, I believe,” he said.

Some properties are purely investment, he said.

“They live five hours away; they’re never here,” he said of the owners. “I hope this conversation continues and the city develops some standards as they do with other businesses.”

Preserving housing availability should be a community goal of Lewes, he said.

“I think we’re missing the mark,” he said.

A few owners of short-term rental units also attended the meeting. They said there is a major difference between a unit that’s owned by someone who lives in town and a large home that’s owned by someone who doesn’t live nearby.

Amy Cleaver owns a one-bedroom unit on Mulberry Street. She converted a portion of her home into a unit that can be rented by one or two people. Kids, pets, parties and fires are prohibited, she said.

“It’s my fifth year, and it’s a better-than-expected experience, and a way to provide an income,” she said. “Every single guest loves Lewes, and I love to share my little town and little house.”

Jeff Williamson also has an Airbnb short-term rental on Mulberry Street. Although he doesn’t live there, his home is only a few blocks away.

“My wife and I spent a lot of money putting it together,” he said. “I screen everyone who comes in. If I don’t think it’s appropriate, I decline to rent to them. I meet everyone. No one comes in without meeting me physically.”

He said he has a high standard for the people he chooses to rent to. He does not rent to high school or college kids.

“Everybody I rent to is professional, educated, sophisticated and loves the opportunity to stay right near downtown,” he said. “We’ve been doing it for four years and never had one complaint.”

Like Cleaver and Williamson, Airbnb host Judy Rolfe is on site and tries to provide a short-term rental that people can enjoy without disturbing the neighborhood.

“I regularly check in with neighbors to see if they have any issues with sound, or any kind of issue,” she said.

She suggested the city consider prohibiting investment properties by requiring the owner be on site or live within the community. She also encouraged council to hold more public meetings for further input.

If the city decides to split short-term and long-term rentals, Townshend said, council will have to decide if they are treated differently in terms of license fees and the gross rental receipts tax rate.

She said staff will review the Sept. 27 discussion, and provide an update and possibly recommendations for next steps at the Monday, Oct. 11 regular meeting of mayor and city council.

Becker said time is of the essence. If the city wants to have any changes in place before next summer, he said, ideas would have to be before council by December.