Carmel ordinance could pour cold water on short-term rentals for private pool parties

They're advertised as a “private backyard oasis,” “happy hour haven” or a “staycation zone” and are the latest craze in the side hustle economy.

But Carmel is poised to dampen the outdoor fun just in time for summer and before they get out of hand.

City planners are drafting an ordinance to regulate the rentals of swimming pools, pickleball courts, trampolines and other recreational playthings on private property.

Council members were alerted to the trend by homeowners at the Spring Mill Ridge subdivision, who complained that a homeowner there was renting out a pool for crowded loud, parties.

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The residents said the rental gatherings last summer disturbed the peace and brought a potentially dangerous amount of traffic into the neighborhood.

A subcommittee of the Carmel Plan Commission is meeting Thursday night, where it is expected to introduce an ordinance that sets rules on hours of operation and number of guests, among other restrictions. If it is approved by the Plan Commission at a May 21 meeting it will likely go to the City Council for a public hearing in June.

Councilor Jeff Worrell said short-term rentals for a variety of outdoor activities can be found on websites similar to Airbnb and Vrbo.

The dominant one for pools and some other backyard fun is Swimply, in which five Carmel properties currently are enrolled, and which rent for between $30 and $65 an hour. Though acknowledging the number of complaints are so far limited, Worrell said the council wants to put rules in place in case the rentals explode in popularity.

“We’re taking the approach of getting a handle on this now,” he said. “This is the gig economy and people are renting almost everything.”

Worrwll said he’s gotten no complaints about the other Carmel pool rentals, probably because they are on large properties far removed from their neighbors.

At a Plan Commission public hearing on April 16 a Springmill Ridge resident described “a constant inflow of strangers” at a home that “has been turned into a place of business.”

“Instead of a residential cul-de-sac, it’s become a commercial cul-de-sac.” Andrea Vanderpool said

Worrell said the Springmill Ridge homeowners’ association banned the pool rentals but it was ignored by the homeowner, so the HOA turned to the council for help.

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He said the ordinance will require the pool hosts to get a zoning variance and a permit if HOAs do not already ban the rental. It could also address noise and setback levels.

The president of the Springmill Ridge HOA and other residents did not respond to a request for comment. Attempts to reach pool hosts registered on Swimply were unsuccessful. Swimply, located in Virginia, did not respond immediately to a request for comment.

The draft ordinance sets standards for what the city calls non-dwelling short rental use “to mitigate negative effects on the quality of life, safety of residents, and quiet enjoyment of properties,” according to the draft ordinance.

It could require:

  • Homeowners to be on the property during the rental.

  • Limiting rental hours from 10 a.m. to 8 p.m.

  • Restricting the number of rentals per day, week or month.

  • Limiting the group size gathering at the rented area to be no more than 10 people

  • Providing sufficient guest parking.

  • Fines for violations and possible revocation of permit after repeat violations.

  • Liability insurance of at least $1 million.

The regulation isn't the city’s first stab at limiting short-term rentals. Carmel passed an ordinance restricting rentals of homes in 2018 that was grandfathered in after the Indiana General Assembly passed a law prohibiting a ban and restrictions on the rentals.

The ordinance limits the number of days homes may be rented.

Worrell said he does not believe the pending ordinance violates the state law on short-term housing rentals.

Call IndyStar reporter John Tuohy at 317-444-6418. Email at john.tuohy@indystar.com and follow on X/Twitter and Facebook.

This article originally appeared on Indianapolis Star: Carmel city ordinance could end short-term rentals of private pools