Regulating Short-Term Rentals Around Lake Norman

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Lake Norman, a picturesque destination drawing thousands of residents and out-of-town visitors alike, has become a hotspot for short-term rentals. The surge in popularity of platforms like Airbnb and VRBO has led to a proliferation of rental properties around the lake, resulting in a wave of complaints from permanent residents. These grievances range from disruptive parties to more serious safety concerns (shots fired!). To address these issues, two counties bordering Lake Norman are contemplating legislation aimed at mitigating the impacts of short-term rentals. Iredell and Catawba county.

 

 

The Regulatory Proposals

In Lincoln County, a proposed amendment to the Unified Development Ordinance (UDO) is under discussion. This amendment would necessitate that rental property owners obtain zoning permits for their properties, with permits granted only in residential zoning districts. Across the lake in Iredell County, similar legislation is on the table. This amendment not only mandates permits but also imposes a cap on the number of occupants in a rental property, allowing only two individuals per bedroom, along with two additional guests. Furthermore, large gatherings would be prohibited for renters in both counties if these amendments pass.

Let's break it down a little more clearly:

  • Zoning Permit 
  • 2 guests per bedroom (+2 additional guests) based on tax records
  • 1 off-street parking spot per bedroom (4 bedroom = 4 parking spots)
  • Steet signing displaying contact name and phone number of manager/owner
  • No events

 

The Legal Context

Before delving into the current regulatory landscape, it's essential to note a legal case that has influenced the trajectory of these discussions: Schroeder v. City of Wilmington. This case, decided last April, saw the North Carolina Court of Appeals rule that requiring short-term rental owners to register their properties violated state law. The ruling also barred counties from denying short-term rental permits based on various factors. Although this legal decision places certain limitations on regulatory measures, it does grant municipalities the authority to establish zoning and development standards for short-term rentals, as per the UNC School of Government.

Voices from the Community

Public meetings in both counties have seen a passionate exchange of views from residents on both sides of the debate. Lincoln County residents attending these meetings expressed their support for short-term rental regulations. Safety concerns, noise disturbances, and parking issues were at the forefront of their arguments.

One resident from Denver, Craig Amick, recounted a chilling experience: "Over 70 shots were fired into the home next to me. One of the gunmen could have turned and fired some of these bullets into my home, or one of my neighbor's homes with potentially a worse outcome."

Steve Myers, another Denver resident, likened a short-term rental property in his neighborhood to a "fraternity house," emphasizing the disruptive impact of constant partying and loud noises.

Martin Oakes, living adjacent to a short-term rental, pointed out a specific gap in the proposed amendment, noting that while it restricts large gatherings, it doesn't specify the maximum number of people allowed on the property at any given time.

Iredell County residents echoed similar concerns during their meetings. Safety hazards on the lake, particularly involving vacationers on rental boats, were a focal point of their discussions.

 

 

Perspectives from Rental Owners

Wishlist Property Management owner Shaun Kelly stated his thoughts, "NC has had a long history of overturning these local rules and we are hopeful that the state will allow homeowners to continue using their home as they please (without excessive disruption to neighbors). Lake Norman was wild before this latest STR surge around it and I think people are forgetting that. These proposed regulations don't completely ban STRs and we are grateful for that, however, they don't really resolve the main issue of noise complaints. Mandating noise censors in homes ($100 solution), requiring guest books with rules (quiet hours, no parties, respect others, lake etiquette), a total flat max occupancy of 14-16, banning events, etc could be a more moderate approach to curbing some of the real issues here. Hurting a small isolated Bnb because their septic is only for 2 bedrooms compared to still allowing an 8-bedroom home to have 18 guests while in a neighborhood isn't very logical. Put a total max occupancy if you're going to do this at all. 

 

 

Other short-term rental owners also had their say. They stressed that they do not condone disruptive parties and have implemented measures to prevent such incidents. Some rental companies have even installed surveillance cameras to ensure that rules are followed. However, they raised concerns about the proposed regulations, such as the requirement for permits and solid waste collection services, which they feel are unnecessarily burdensome.

Marty McCarthy, a short-term rental owner residing in Denver, expressed concerns about the proposed regulations, including the requirement to obtain a permit within 90 days and mandated solid waste collection services, which are not required for single-family homes.

Seeking a Balanced Solution

In response to the public comments, Lincoln County Commissioner Cathy Davis proposed forming a task force comprising county officials and stakeholders from both sides of the issue. This task force will further discuss the proposed regulations and potentially make adjustments to address concerns.

In Iredell County, commissioners voted to table their amendment, emphasizing the importance of finding a balanced solution that satisfies both residents and short-term rental owners.

 

 

Conclusion

Lake Norman's allure as a destination has led to the proliferation of short-term rentals, which, in turn, has generated a range of concerns among permanent residents. As Lincoln and Iredell Counties navigate the path toward regulation, the voices of concerned residents and short-term rental owners play a significant role in these ongoing discussions. Striking the right balance between accommodating vacationers and ensuring the well-being of the local community remains a challenging endeavor for these communities around Lake Norman.

 

What do you think about all this?