Jun. 26—Short-term residential rentals, such as through Airbnb, are common in Decatur despite an ordinance that almost completely bans them, but some city officials believe it's time to loosen the restrictions while taking steps to limit the impact on residential neighborhoods.

Short-term rentals of private homes are rising in popularity but creating controversy throughout the nation as cities struggle with how to regulate the rentals and protect neighboring homeowners.

Companies like Airbnb and Vrbo allow private homeowners to rent out homes or portions of homes using an app or website much as a hotel does.

At the urging of the Planning Commission last week, City Planner Lee Terry has begun forming a committee to study loosening the city's short-term rental regulations.

Terry sent an email to the five council members asking them to select a representative from their districts to serve on the committee.

In July 2016, Decatur all-but banned short-term rentals of residential homes. The city ordinance considers short-term rentals to be 30 days or less, and they're allowed only in B-2, general zoning districts, and B-5, central business districts.

They're allowed in R-4, multifamily residential (apartments) districts if the homeowner gets a variance from the city Board of Zoning Adjustments or Building Department. They are not allowed in any other residential zones.

Among the concerns cited by city officials when the 2016 restrictions were adopted was that frequent, transient visitors could disrupt a neighborhood and raise safety issues; that visitors might have loud parties or take other actions that disturbed neighbors; and that if more than one room in a house was rented at a time to different people, the practice could cause traffic problems, especially in the historic district.

"The city is in need of meaningful regulations while there's still not a ton of short-term (home) rentals now," Terry said last week.

Terry said short-term rentals are growing more and more popular "so there is a desire from the city to get ahead of this issue while we can."

Council President Jacob Ladner said the city needs to adjust its ordinance because, like it or not, the short-term rentals are occurring in Decatur.

"As the Auburn mayor said in a public meeting I watched online recently, 'These things are here and they're not going away,'" Ladner said.

The Airbnb website on Friday showed 15 available rentals in Decatur, including a recreational vehicle. The Vrbo website showed 15 available rentals in the city.

Most of these short-term rentals are in homes in residential districts where the practice isn't allowed.

However, Revenue Department Manager Lori Rossetti said the city is not enforcing the ordinance because there is no licensing procedure from which a database of the short-term rental properties can be compiled.

"We know they're happening, but we can't do anything until we have a plan," Rossetti said.

Wally Terry, now retired, was city director of development and the main proponent of Decatur's restrictive ordinance that passed in July 2016.

"We put in place the restrictions primarily not to let it get out of hand," Wally Terry said of the initial restrictions. "The City Council wasn't ready at the time for a full-blown ordinance."

However, he said last week that he believes the timing is right for the city to consider relaxing its restrictions. He said the restrictive ordinance put the city in a good position because it's easier to relax the ordinance and add required licenses than to tighten it.

Decatur is not alone in struggling with the issue.

Last year, Auburn City Council member Steven Dixon filed a lawsuit against his own city over its restriction of short-term rentals. Dixon had been renting out his property since 2018, and The Plainsman newspaper reported that he said he "had lost my right to use my home as I see fit."

Dixon was found guilty in Auburn's Municipal Court of violating the city ordinance on short-term rentals.

Dixon's lawsuit against the city was dismissed by the circuit court June 17.

In March, Prattville put a 10-month moratorium on short-term rentals while it figures out how to deal with the issue, the Montgomery Advertiser reported.

Mountain Brook prohibits rental of a home for less than 30 days while Homewood bans rentals of less than 90 days in residential neighborhoods.

Huntsville in 2018 embraced short-term rentals as long as the homeowner obtains a business license and pays the lodging tax. Mayor Tommy Battle said at the time that the move benefited tourism and increased city revenue.

In January, Madison passed an ordinance which allows short-term rentals only of dwellings that are the primary residence of the homeowner. The ordinance also requires the homeowner to purchase a "Zoning Tourist Rooming House Permit." The permit costs $100 for an application fee and a $100 annual fee.

The city of Northaven, Mississippi, banned short-term rentals in March "to preserve the sanctity of the single-family residential community," Kevin Stafford, chairman of the Northaven Planning Commission, told the Columbus, Mississippi, Dispatch.

Kent Lawrence, chairman of the Decatur Planning Commission, said "good, strong regulations" can protect both short-term rentals and their neighboring single-family homes.

"Right now, they're here," Lawrence said. "And we need regulations we can enforce."

In addition to a business license, Lawrence pointed out that the city can also start collecting lodging taxes from those who stay in a short-term rental.

"The city is losing lodging tax when people use a short-term rental and they don't stay in one of the city's hotels or motels," Lawrence said. "Anything less than 180 days, or six months, and they're supposed to pay a lodging tax."

As part of a new ordinance allowing short-term rentals, Chief Code Inspector David Lee said the city will need to decide how it will enforce the new regulations and how the city wants its departments to handle enforcement, inspections and licensing.

"They have to decide what they want and how far they want to go with it," Lee said. "It's going to take people and money whatever they decide to do, and none of the departments have enough existing staff to do it."

Rossetti said she believes her department can handle short-term-rental licenses without additional employees. The department's enforcement officer would then make sure the licenses are purchased and the short-term rental owners are following the city ordinance.

"Once they approve a new ordinance, we will send out letters, give them so many days to comply and then the enforcement officer will make a visit if they don't comply," Rosetti said.

— bayne.hughes@decaturdaily.com or 256-340-2432. Twitter @DD_BayneHughes.