Permitting could be coming to Lewes short-term rentals

Committee member Don Long wondered if a property owner in Lewes has the right to rent out their property on a short-term basis during a July 14 short-term rental ad hoc committee meeting. Committee member Tonya Flickinger, who operates a Vrbo, emphatically replied that she or anyone else owning property absolutely has that right. Committee member Winnie Kee agreed with Flickinger, but also discussed proper code enforcement, implying that a system needs to be in place to protect members of the community from nuisances. Jeffrey Goodman, a short-term rental consultant, said he believes a permitting system requiring the holder to satisfy a set of criteria would provide accountability.

Property managers and code enforcement officers would be separate; the former being employed by property owners, with the latter operating under the city’s building department. Adriane Gallagher, who has decades of experience in rentals, imparted her wisdom about the details of Gallo Realty’s two-pronged approach to property management.

The property manager is responsible for regular maintenance on the property as well as continuing to care for the unit or home in the off season. The rental agent is the contact person, a position the committee wants each short-term rental to fill with someone local. Rental agents are available 24/7 should an emergency situation arise or renters need services from a particular vendor. 

Flickinger agreed that having a local contact person is important, but would like the committee to use the term “local contact” because property managers can still effectively manage the property from several states away. Kee said she believes the position can alleviate additional pressures new laws may place on the police department. Officials say complaints during regular business hours should be directed to city hall, but during other hours, the police should be called. Police should have the number of a contact person assigned to the property. 

Airbnb and Vrbo have rules regarding nuisances, reserving the right to enact punishment on violators. The concern continues to fall back on who is reporting the violation and their methods behind such notifications. City Manager Ann Marie Townshend does not want residents calling for every jump into a pool, while multiple residents have expressed concerns about spying on their neighbors. 

Goodman said he believes the committee should use the term local contact person, but he thinks the responsibilities and roles commissioners are detailing are on par with how he sees the position playing out. He says that it should be a part of the permit process and a local contact person must be prepared to be available to resolve issues 24/7 and usually within an hour of the complaint being filed. The consultant suggests infractions can create strikes against the permit holder. Implications of those strikes have yet to be established, but could include fines and loss of permit.

Insurance

According to Goodman, most homeowners insurance plans do not cover short-term rentals. Requiring owners of short-term rentals to carry insurance is a common practice in most areas Goodman has worked in. Lewes does not require insurance from its renters, but Townshend said they could begin requiring proof of insurance as part of the permitting process. Flickinger said she believes it will be tough to verify the type of coverage and could impose financial hardships if a blanket policy is implemented since each short-term rental is different. Goodman said the best course is for the city to require minimum coverage for the permit, allowing the individual property owner to determine their level of liability.

The committee will meet at 10 a.m., Tuesday, July 26, to further discuss short-term rentals and how an ordinance fits the Lewes Beach part of town. Officials have stressed the distinctive areas of Lewes and the importance of catering to the needs of each unique location.