Why Wilmington postponed a hearing on proposed Airbnb regulations until June

Amanda Fries, Delaware News Journal
Updated ·2 min read

A public hearing on proposed regulations for the short-term rental market in Wilmington has been rescheduled for June.

Regulations to the popular Airbnb and Vrbo industry were proposed in April following issues some city residents were having with next-door short-term rental units, including late-night partying, increased traffic and activities at all hours.

An ordinance sponsored by city Councilperson Bregetta Fields and co-sponsored by Councilperson Nathan Field would establish regulations and guidelines for the short-term rental market, including creating a 3% lodging tax on each booking for short-term rentals, as well as rules and obligations for rental owners.

Short-term rental owners have pushed back on the proposal, arguing that the regulations go too far and could make it impossible for many owners to continue running their businesses. One of the proposed regulations appears to allow only owner-occupied short-term rental units, which Airbnb owners say would cut most people out of the market.

BACKGROUND: Here's how Wilmington wants to regulate Airbnb and other short-term rentals

The ordinance was originally scheduled for a public hearing in the Wilmington City Council’s Community Development & Urban Planning Committee on Thursday, but council staff and city lawmakers say the committee will take up the ordinance during its next meeting on June 13.

What are the proposed regulations?

Beyond instituting a tax on short-term rentals – a measure Airbnb and Vrbo owners support – the ordinance would also:

  • Make short-term rental units only a secondary use for the property.

  • Ensure contact information for the rental owner is shared with guests.

  • Prohibit ownership of a rental unit by a business entity.

  • Require insurance coverage.

  • Limit the occupancy in short-term rental units.

READ THE DETAILS OF THE ORDINANCE

SHORT-TERM RENTAL POLICY: Could this New Castle County zoning rule make most short-term rentals like Airbnb illegal?

The proposal would impact only short-term rentals within city limits.

While a zoning policy for short-term rentals in New Castle County has caused consternation among Airbnb owners, that policy applies only to owners in unincorporated communities within the county. The state is also considering imposing an 8% lodging tax on short-term rentals through House Bill 168.

Got a tip? Contact Amanda Fries at afries@delawareonline.com. Follow her on X at @mandy_fries.

This article originally appeared on Delaware News Journal: Wilmington postpones hearing on Airbnb, Vrbo regulations until June