Covington adds new penalty for unlicensed Airbnb operators amid crackdown

As Covington reexamines its short-term rental regulations and cracks down on unlicensed properties, typically advertised on Airbnb and Vrbo, the city's board of commissioners added a new penalty for property owners operating short-term rentals illegally.

In a unanimous vote on Tuesday, commissioners adopted an ordinance amending the city's provisions for denying short-term rental license applications, as well as for suspending or revoking existing licenses.

The change allows city officials to deny a new or renewed short-term rental license application if a property owner is found to have operated an unlicensed short-term rental within the previous year. Licensed property owners can also have their licenses suspended or revoked if they're found to have done the same.

Commissioners had previously considered a one-year ban on short-term rental licensure for noncompliant property owners. A vote was originally slated for Feb. 28, however, commissioners opted not to vote on the proposed ban on the advice of the city solicitor's office.

City Solicitor David Davidson has said the proposed ban was reworked, in part, due to concerns over due process. A hearing process is required in the event city officials give notice to a short-term rental operator of "allegations giving rise to possible suspension or revocation," the ordinance reads.

Covington established its short-term rental regulations in late 2020. The current process requires property owners to secure a business license and an annual short-term rental dwelling license, as well as obtain conditional-use zoning approval.

Penalties currently in place include fines up to $1,000 per day and tax audits.

The city placed a six-month pause on short-term rental licensure in December to allow city officials time to reexamine its regulations and devise solutions to the perceived "negative impacts" of short-term rentals. That moratorium is still in effect.

Chief among Covington's concerns over the proliferation of short-term rentals is reduced availability of affordable housing, residential neighborhoods transforming into commercial lodging areas and increased complaints about parking and traffic.

While platforms like Airbnb offer an added revenue stream for landlords and can lead to greater economic activity in cities, they can also limit an area's long-term housing stock and increase housing costs, experts say.

Officials also say the city's process for granting zoning permits is lengthy and a crush of short-term rental properties threatens to overwhelm the board responsible for those approvals.

Some short-term rental operators in Covington have decried the city's recent enforcement push as being unfair and overly punitive. They've also criticized the city for a lack of transparency regarding the short-term rental licensure process and for a lack of communication with short-term rental operators.

In response, Covington Mayor Joe Meyer has said outreach to unlicensed short-term rental operators has been "completely unsuccessful."

Only 43 short-term rental licenses have been issued since the city's regulations went into effect, officials have said. A software company hired by Covington has found over 400 units advertised on vacation rental platforms such as Airbnb and Vrbo, with 251 unique owners.

"We regret we had to do a moratorium but everything else we tried failed," Meyer said during the Feb. 28 meeting. "At the end of the day, we want people to (have) successful businesses, but we also want you to play by the rules."

Officials said a public hearing regarding the city's short-term rental regulation changes will likely be held within the next couple of weeks, though an exact date hasn't been determined.

The Covington Board of Commissioners will meet again on April 4.

This article originally appeared on Cincinnati Enquirer: Covington adds new penalty for unlicensed Airbnbs amid crackdown