Will Lake Norman vacation home rentals get new rules, more red tape?

Thousands of people call the Lake Norman area, but it’s also become a popular vacation spot for out-of-town visitors.

Due to the rise in popularity of websites like Airbnb and VRBO in recent years, and the lack of lodging in some areas, more people are staying in short-term rentals around the lake, which has led to a slew of complaints — ranging from raucous parties to violent incidents — from full-time residents.

Now, two counties that border the lake are attempting to pass laws to make those properties less of a nuisance.

A proposed amendment to Lincoln County’s Unified Development Ordinance, discussed at Monday’s Board of Commissioners meeting, would require rental owners to obtain zoning permits for their properties. If the amendment passes, permits would be approved only in residential zoning districts.

On the opposite side of the lake, Iredell County commissioners introduced a similar amendment during their meeting Tuesday that also requires owners to get permits for their rentals. The rule also caps the number of occupants in a rental at two people per bedroom, plus two additional guests.

Renters in both counties would also be barred from hosting large gatherings if both amendments are approved.

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Schroeder v. City of Wilmington

Before public comments at Monday’s meeting, Lincoln County Attorney Megan Gilbert referenced Schroeder v. City of Wilmington, a case from last April, where the North Carolina Court of Appeals ruled that requiring short-rental owners to register their properties violates state law.

The ruling also prevents counties from denying short-term rental permits based on other factors.

After the ruling, the City of Charlotte was forced to scrap new regulations officials proposed around short-term rentals from its UDO, including a separation rule that required all rentals to be 400 feet apart from each other, The Charlotte Observer reported.

“We cannot require separation standards,” Gilbert said, meaning counties cannot require owners to establish a buffer between their property and others. “That was clear in the Wilmington cases. And we cannot apply density standards.”

However, the court did rule that municipalities are allowed to set zoning and development standards for short-term rentals, according to the UNC School of Government.

“In general, local governments have the authority to define land uses, set reasonable development standards and limits on those land uses, and require some level of permitting for such land uses,” the school says.

‘Nobody wants to live by a fraternity house’

The majority of Lincoln County residents who attended Monday’s meeting spoke in favor of short-term rental regulation, citing concerns about safety, loud parties and lack of parking.

Denver resident Craig Amick said he and his family hid behind his bed when shots were fired into a VRBO rental property next to his house in March.

“While me and my family were on the floor trying to protect ourselves, over 70 shots were fired into the home next to me,” Amick said. “One of the gunmen could have turned and fired some of these bullets into my home, or one of my neighbor’s homes with potentially a worse outcome.”

“Although I know this type of shooting is rare, it highlights the lack of oversight and accountability of short-term rentals in Lincoln County that we desperately need,” he added.

Steve Myers, who also lives in Denver, likened the short-term rental property in his neighborhood to a “fraternity house,” saying the location has become disruptive due to constant partying and loud noises coming from the location.

“These people seem oblivious to neighborly etiquette and those around them,” Myers said, referring to renters.

Denver resident Martin Oakes, who lives next to a short-term rental pointed out that the proposed amendment to the UDO prevents renters from hosting large gatherings, but does not specifically mention the maximum number of people allowed there at one time.

Iredell County residents who spoke at Tuesday’s meeting expressed many of the same concerns, including hazards presented on the lake by people on vacation.

“The many, many rental boats associated with short-term rentals are causing the majority of serious injuries on the lake,” Mooresville resident Mary Rotondo said, citing Iredell County Sheriff Darren Campbell. “Short-term rental people need to realize that there is a cost to the lake, its pristineness, the land and residents that live next to them.”

Mooresville resident Tricia Odenwald asked commissioners how the capacity limits and other zoning violations would be enforced, if those who stay in rentals are gone before county officials can be notified.

“Will there be a dedicated 24-hour phone line to receive and respond to issues in real time?” she asked. “As of today, there are over 700 short-term rentals in Iredell County alone. This is a monster situation.”

How are short-term rental owners affected?

Lawrie Lawrence, the CEO of StayLakeNorman, a luxury short-term rental company that manages 50 properties in the area, attempted to address the issues brought up during both meetings. He said that out of 50,000 stays at the homes his company owns, there have been 12 evictions due to parties.

“Every vacation rental property manager that I know … hates the idea of this happening,” he told Lincoln County commissioners. “I don’t know of any property manager that advertises ‘bring 100 friends and come and party.’”

StayLakeNorman COO Caleb Hannon told Iredell County commissioners there are front-facing and rear-facing cameras at each of properties the company manages, which are monitored by his staff to ensure all rules are being followed.

“We’ve had issues before,” Hannon said. “We’ve learned from those issues, and that’s why we’re implementing these standards to move forward.”

Short-term rental owner Marty McCarthy, who lives in Denver, said there are provisions in the Lincoln County proposal that make their lives “more difficult.” Among those hurdles would be a requirement to obtain a permit within 90 days of when the law goes into effect, and mandated solid waste collection services at all short-term rental properties — which is not required at single-family homes.

“It’s like double taxation,” said McCarthy, adding that Lincoln County law already prevents homeowners from letting trash accumulate. “The problem is solved here, and I feel this requirement should be removed.”

Lincoln County’s amendment would also require rental owners to provide one parking space per bedroom, which would make it difficult for owners who operate duplexes, or parcels with multiple units on one property, to implement, McCarthy said.

“If it falls within the correct zoning, and if it doesn’t have neighborhood or HOA restrictions, then a person should be able to potentially use their property as a short-term rental,” she said. “This is being made into a big issue when it could be quite simple.”

A path forward

At the end of public comment, Lincoln County Commissioner Cathy Davis motioned to establish a task force made up of county officials and people “from both sides of the issue” to discuss the proposal further and offer changes. The motion was unanimously approved by the board.

“We’ll do the best we can and hopefully reach a compromise agreement that is close to satisfying everyone,” Lincoln County Commissioner Bud Cesena told the Observer. “Is everyone going to be comfortable? I don’t think so.”

Iredell County commissioners voted 3-2 to table their amendment, delaying the vote until their next meeting on Oct. 17.

“We want to make sure we’re doing things correctly,” Iredell County Manager Beth Mull said during the meeting. “We’re not going to come up with something perfect, but we need to come up with something both sides can live with.”

Commissioner Scottie Brown, who along with Commissioner Brad Stroud voted against tabling the amendment in favor of holding the vote on Tuesday, had a message for short-term rental owners in Iredell County who had reservations about the amendment.

“If you’re doing a good job, you shouldn’t be concerned,” Brown said. “Our job is to protect the citizens that live here.”