'Play by the rules': Covington postpones vote on licensure ban for noncompliant Airbnbs

The Covington City Commission on Tuesday opted not to vote on a proposed ordinance amendment that would add a one-year licensure ban as a possible penalty for property owners operating illegal short-term rentals.

Instead, commissioners will hold a vote during its next legislative meeting on March 14. The delayed vote came in response to the city solicitor's office wanting to make a change to the amendment's placement within the ordinance.

If adopted, the amendment will add a new penalty for landlords who advertise their properties on platforms like Airbnb and Vrbo without the proper approvals. It would ban these property owners from applying for a short-term rental license for one year from the date they received a violation notice from the city.

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.

The city placed a six-month pause on short-term rental licensure in December to allow the city time to reexamine its regulations and devise solutions to what officials say are the "negative impacts" of short-term rentals.

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.

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 doling out those approvals.

Some short-term rental operators have criticized the city's recent enforcement push as being unfair and overly punitive. Those who spoke at Tuesday night's meeting asked commissioners to collaborate with them as the city crafts its updated regulation scheme.

"We truly feel shut out," Chris Hikel, founder and general manager of Liberty Hill Rentals, said to commissioners.

Hikel said three short-term rental units at a 14-unit property in Covington managed by Liberty Hill subsidized housing for six elderly residents, allowing them to pay $600 per month on average. With those short-term rentals gone, those tenants may end up paying an additional $200 to $300 per month, he added.

Covington Mayor Joe Meyer 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 say. 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 Tuesday night's meeting. "At the end of the day, we want people to (have) successful businesses, but we also want you to play by the rules."

The city is expected to hold several public hearings to allow for input on the short-term rental regulation changes.

This article originally appeared on Cincinnati Enquirer: Covington postpones vote on licensure ban for noncompliant Airbnbs