Crafting rules for vacation rentals hasn't been easy for Waynesville planning board

Yahoo

25-03-2025

Mar. 24—The idea of banning new vacation rentals in certain Waynesville neighborhoods appears to have fizzled out.
A surge in homes being converted to vacation rentals and the associated problems that come with that prompted Waynesville last year to consider whether it's time to rein them in. The Waynesville planning board has been studying and debating the issue for 18 months.
The latest draft of a short-term rental policy presented to the town's planning board Monday night would allow vacation rentals in all residential zoning districts.
The policy would, however, impose rules on vacation rentals — like parking regulations, proper trash disposal and posting the property owner's phone number outside so the town can contact them if issues arise.
Waynesville Development Services Director Elizabeth Teague acknowledged it's a shift from initial discussions that would have taken a harder line on whether vacation rentals were appropriate in all neighborhoods.
"We have moved from that discussion to just allow them across the board where residential uses are allowed," Teague told the planning board. "It's just a draft."
The draft proposal also classifies the definitions of vacation rentals — a homestay where the property owner lives on property and short-term vacation rentals where the property owner isn't present.
The planning board took no official action on the draft proposal after one board member indicated that more time was needed to further study the proposal. The board will review the draft proposal again at its April meeting.
The next step would be holding a public hearing to seek citizen input. That public hearing would likely be in May. Town council would then have to sign off on the proposal.
Local landlords vs. corporate holders
Teague said crafting new rules governing STRs was not an easy process.
"We have gone back and forth on the short-term rental ordinance," Teague said.
Despite aggravations of STRs, the planning board wanted to preserve the ability for a local homeowner to make extra money. But planning board member John Baus doesn't like it when big companies buy up houses for the sole intent of converting them to fleets of AirBnbs.
"The idea behind this was we didn't want to inconvenience any of our town residents who want to do this with their property. But we certainly didn't want to make it as convenient for (big companies) to come in and buy up a bunch of houses and have them unaccountable," Baus said.
The growth in vacation rentals has been blamed for depleting the inventory of affordable housing and the erosion of neighborhoods. In some cases, vacation rentals bring a host of problems for neighbors, from noise to parking to excessive trash. That is what prompted the town to take a hard look at STRs.
Baus said he wanted more time to digest the proposal before the board seeks public input.
"We have a few other options to discuss," Baus said, citing researching on STR regulations elsewhere. "I was going to suggest a couple of additions to the board."
Town planning officials were quick to point out that property owners of existing vacation rentals would be grandfathered in, meaning they would not be subject to the new rules. A short-term rental would continue to be grandfathered in even if the current owner sold the property to a new owner who intended to maintain it as a vacation rental.
On-site vs. off-site
Under the proposed changes, property owners who live on the same property as the rental would be exempt from the rules — based on two different classifications.
"The idea here was to distinguish between people who live in Waynesville and wanted to rent their garage apartment versus people who buy a house and just use it as an STR," Teague said.
One would be a homestay, which would be the rental of a room or rooms in a dwelling where a permanent resident resides. The permanent resident would be present in the home during the time of the homestay. It could also apply to an accessory unit on the same property.
The second type of vacation rental classification would be a short-term vacation rental, which is commonly associated with Airbnb, Vacation Rentals by Owner (Vrbo) and other similar platforms.
The draft proposal would add several regulations associated with STRs, but not homestays. Both have to comply with state occupancy tax regulations and town ordinances that currently apply to residential uses. An STR is defined as a rental of less than 30 days for single-family homes, townhomes, duplexes and even apartment units.
New rules
A short-term vacation rental would be required to have one parking space per bedroom with a minimum of two parking spaces per unit. The Downtown Business and Hazelwood Business Districts would be exempt from the minimum parking standards.
Teague said one specific complaint received by the town is regarding unsightly trash and that the proposal addresses the issue.
"Trash should be stored in appropriate containers and set out for collection on the proper collection day," Teague said. "The cans shall be removed from the street within 24 hours after the scheduled collection day. For units not serviced by the town, arrangements must be made for a private service to manage solid waste collection from the site, and in a way that it does not attract animals."
An owner would also be required to post notification outside the unit that includes the name and telephone number of the property owner or manager, the address of the STR, the maximum of overnight guests allowed and the days of trash collection.
"This is a clear vehicle to manage the complaints that we have," Teague said.
It would also require that the phone number for the town's police department be posted for guests. An STR would also be allowed to place a sign advertising the property.
There were 1,744 short-term vacation rentals in Haywood County in 2024. In 2023, 53% of overnight visitors stayed in an STR.