Downtown Asheville homeowners live amid 9 illegal Airbnb's; despite reports, no fines

ASHEVILLE - From the view of a 17 North Market St. condominium, Asheville is aglow. Walking out the east side of the building onto the old, cobbled road, downtown is easily accessible on foot, with cafes, restaurants and breweries just a short walk from the location.

The condos seem ideal for anyone wanting to live in Asheville — or anyone wanting to stay a night in the area.

Perhaps, then, it is of little surprise that the building's nine Airbnb listings detail "impressive," "fabulous," "absolutely amazing" or "unbelievable" short-term rentals at the location.

None of the nine rental listings in the building have valid permits registered through the city of Asheville, and yet the condos have continually been used as short-term vacation rentals. All nine currently have active listings up on Airbnb and Vrbo.

For Ken and Joan Pierce, currently the only full-time residents at 17 North Market St., living among Airbnb guests has been their reality for over two years.

"This is where we live. This is where we made our home. We love Asheville; it's a great city," Ken Pierce told the Citizen Times. "But we kind of feel trapped in a nest of STRs."

In January, the Citizen Times reported the owners of the nine condos had jointly moved to apply for a change of use permit to file their condo units as a "hotel." The decision came after the city had filed notices of violation against some units in the building — violations that can lead to $500 a day in fines.

Some have been active since the building's renovation was completed in 2021 — long after the city banned the practice in 2018.

In 2022, a report was filed for short-term rental activity in the building by former resident Hiren Patel. No action had been taken against the listings until just recently. Between multiple websites, the STVRs share 834 reviews.

As a result, homeowners in the building suggest the Airbnb's may have avoided nearly $1.6 million in fines as the city faces increased Airbnb usage and conversations of further regulations.

"This wasn't what we thought we were buying. We knew what the ordinance said, and we relied on this city. We thought: 'Okay, it would be enforced, and fines will be imposed'," Ken Pierce told the Citizen Times.

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City issuing notices of violation; fines if properties 'do not comply'

Since the units have been operating as STVR's since the building's opening in 2021, the fines not levied by the city during that time is likely in the hundreds of thousands and, possibly, millions, Christian Oliver said.

Kim and Christian Oliver own the unit across the hallway from the Pierces and aim to eventually move to the location full-time.

After compiling the over 830 reviews from the Airbnb, Towns Property Management and Vrbo listings for the condos, the Olivers calculated the fines based on reviews.

If all 834 reviews had led to a $500 fine, it would easily lead to a total of $417,000 in unlevied fines on the building, but accounting for renters who don't place a review and giving each renter an average stay of three days, those unlevied fees shoot up to $1.6 million.

"It's literally hundreds of thousands of dollars that aren't being collected because the laws aren't being enforced," Kim Oliver said. "That, to me, is where the real problem lies: Within laws and enforcement."

Currently, the city is in the process of issuing a notice of violation to at least eight of the STVR's, according to city spokesperson Kim Miller. Fines could come later.

"Four citations have been issued for the properties that previously received a Notice of Violation. One additional property was also issued a Notice of Violation. At least 3 other properties are being reviewed for compliance. While all nine properties could be issued citations, fines will only be issued if the properties do not comply," Miller wrote on behalf of city planning and development staff to the Citizen Times.

Platforms 'refuse to turn the tool on'

The problem with city regulation could be tied to the lack of cooperation from listing companies, said City Councilwoman Sage Turner.

"Enforcement of STVRs can be very challenging but it’s not impossible," Turner told the Citizen Times Feb. 2. "Platforms like Airbnb have the tools cities need to clean up all of our enforcement issues. Sadly, they refuse to turn the tool on for Asheville, despite doing so in other cities already. I attempted to negotiate with the platforms for months; they agreed to add the tool we need — if we free up large areas of the city for STVR use."

Between November and December, there were only a total of three total short-term rental violation reports through the Asheville App. January saw 24 reports amid increased coverage of STVR regulations. Reports are one of the few ways the city of Asheville is able to manage STVRs.

"Meanwhile, the city is left to chase and prove the illegal rentals, a time consuming and costly process that often relies on leads from neighbors," Turner wrote. "And when dealing with large STVR management companies, delays and legal processes can impact the timeliness."

The Olivers and Pierces didn't want to upset anyone by asking for the Airbnb's to be removed, but — with the hotel application — their position has changed. The homeowners were not told of the application, only learning of it after the Citizen Times report.

"We kind of begrudgingly made peace with it, not wanting to really create a war inside the building," Christian Oliver said of knowing the Airbnb's were against city law. "We were trying to just come to grips, even though we weren't happy."

"It's when he filed — without anyone knowing — to become a hotel. The deception put it all on the table."

The Pierces and Olivers said they were explicitly told when buying their units that the building would not contain STVRs.

Now, they worry that the building's proposed conversion to a mixed-use hotel could not only further change where they live, but how they live.

Living in 'the nest'

Ken and Joan Pierce moved to Asheville in 2021, moving into their top-floor unit after living in D.C. for 35 years and spending some time in Vermont and Florida.

A photo of the River Arts District, a canvas print of artist Willem de Kooning's painting titled "Asheville," and a sign that states "You are on Cherokee land" decorate their home. When you step inside, it doesn't take long to notice — the Pierces love the city and they love downtown.

"When we first came here and we looked with a realtor up in the mountains and wanted great views, but you have to drive everywhere," Joan Pierce said on what pulled them to the Central Business District.

"This is perfect for us," she said as she looked at the view from the building's rooftop.

Ken Pierce is not only active as a board member of the building's homeowner association but has worked with business owners to help clear up the alley next to the building, an alley that he described as once "unbelievably horrible."

The fallout from the application has not only frustrated them, but has also led to tension with Brett Krueger, one of the building's developers and a representative for the hotel project — someone the Pierces call a friend.

"This is a complete shock," Ken Pierce told the Citizen Times. "I'm one of the three members of the HOA board. The other two are the developers. So it never came before the board. It never came before the membership. It was done in secret."

Kim Oliver felt the decision to file for the change of use permit must've been motivated by the desire to avoid city regulation.

"That's really what had to have prompted it; to avoid the fines," Kim said. "You know, because we've been agreeable about the STRs. Begrudgingly accepting, probably because we felt we couldn't do anything about it."

Condos 'fill up' on the weekends

The 17 North Market St. building — which completed its renovations to condominiums in 2021 — is beautiful. A main foyer with high ceilings contains references to the history of the building as an Anderson Motor Company location. The elevator leads to a rooftop lounge area with a fire pit and a gorgeous view of the city skyline.

Yet, living there is another experience.

"Sometimes we'll get renters roaming up and down our hallway here, a little drunk, a little noisy — lost," Ken Pierce said of some Airbnb guests.

On most weekdays, the Pierces might be the only people in the building. On a Wednesday afternoon, the only car in the basement parking garage was theirs. Other cars are often belonged to STVR renters or cleaners for the units. Joan said the cleaners had parked in their space so many times they started placing a traffic cone on their deeded spot.

On weekends though, and especially in the summer, the garage "fills up" as renters arrive in Asheville for a weekend trip.

Ken Pierce said it's been the case for a few of the units since "day one."

"They're nice people — the owners I've met — but it's been going on a long time. It's an issue that we've raised in different contexts about how this seems to be illegal. It seems to violate all sorts of HOA covenants," Pierce told the Citizen Times.

"Another thing about renters is they take your stuff all the time; like our wagon," Ken said. He often has to track down which room might have the Pierces small black wagon used to move groceries.

As the Olivers make the transition to Asheville, Ken and Joan Pierce noted that it would be nice to have long-term renters as neighbors — rather than just those who are passing through the area.

"Neighbors that you can do favors for and they can do favors for you. You can rely on them and they can rely on you," Ken said.

"That's been missing," Joan added.

All nine units are listed on Airbnb, Vrbo; no permits

All nine of the condo units that are currently looking to make the change to becoming hotel rooms are currently listed on Airbnb — none of them have valid short-term vacation rental permits with the city.

Most of the units charge $304 a night to stay, with reviews on VRBO indicating guests did not often stay just one night, with some staying in units for up to a week

Of the nine condos listed, eight are managed by the Asheville-based Towns Property Management. The Citizen Times reached out to Towns Property, receiving an email response to talk to the applicant for the change of use permit.

"Please contact Brett Krueger about the status of 17 N Market. It is currently in the approval process for Lodging," the Towns Property Management info email wrote to the Citizen Times.

A further request for comment was not answered before deadline. Towns Property Management lists 103 Asheville short-term rental properties on its website.

Rental owners 'just trying to comply'

When the hotel application was submitted Jan. 9, the application was incomplete, triggering a series of back-and-forth's with the city of Asheville. Now, the City will require "an affidavit from all condo unit owners for the project to go forward," City Principal Planner Will Palmquist wrote to the Citizen Times.

Until affidavits are submitted, the application will be considered incomplete.

Brett Krueger, the representative for the nine condo owners who applied for the hotel change of use, said the goal the entire time has been "to comply with the city."

"We're just trying to comply with everybody," Krueger told the Citizen Times Feb. 1. "If I knew that they were going to get upset. You bet, I would've called them. 100%."

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Will Hofmann is the Growth and Development Reporter for the Asheville Citizen Times, part of the USA Today Network. Got a tip? Email him at WHofmann@citizentimes.com. Please help support this type of journalism with a subscription to the Citizen Times.

This article originally appeared on Asheville Citizen Times: Asheville homeowners have lived amid 9 illegal Airbnb's for 2 years