Proposed changes in short-term rental rules could upend Rock Hill Airbnb, VRBO plans

The years-long attempt to settle on short-term rental rules in Rock Hill isn’t done yet. Now, the question is whether those rentals should still be allowed in residential areas.

“It’s been one short year since we were visiting this topic last November,” said city planning commission chairman Randy Graham. “And we went through a pretty exhaustive process at that time.”

Last year the city set rules that require permits, inspections and distance between rental sites. A proposed change now could remove sites from neighborhoods and allow them only in commercial areas.

Graham and others on the planning commission say they thought the city struck a compromise last year that works. That’s why they voted unanimously last week against new changes brought from city staff.

Rock Hill City Council will have the final say. That group gets an initial look at the changes Monday night.

Rock Hill short-term rental changes

When sites like Airbnb and Vrbo grew into mainstream use, communities in the Rock Hill region didn’t have regulations on how homeowners or businesses could use them. Rock Hill began studying potential regulations for short-term rentals in 2017. Tega Cay did the same in 2018, and other communities followed.

In early 2020 Rock Hill came up with rules that required business licenses and accommodations’ tax payments for rentals. At the time there were about 50 rental properties in the city. City staff said technically the rentals were illegal before those 2020 changes, but the city only addressed rental sites if someone complained.

The city defines a short-term rental as a stay of 30 or fewer days at a home with five or fewer bedrooms. The short-term rules don’t impact typical, longer-term rental home arrangements.

Traveling to Rock Hill? Hosting? These new city rules could impact that next trip.

Last year the city set a moratorium on short-term rentals while staff looked at potential rule changes.

City staff said there hadn’t been many complaints. Discussion centered on whether rentals should be considered a residential use, since they’re typically in houses, or a commercial one.

Late last year the city came up with the current rules where property owners can apply for permits to allow rentals.

Proposed changes now would allow rentals in property zoned for business uses but not in ones zoned residential.

The city could have any number of units instead of a cap of 150, rentals wouldn’t have to be 300 feet apart, the city wouldn’t need homeowner or neighbor approval, an overlay created for rentals would be gone and the city wouldn’t have to inspect sites prior to issuing permits, among other proposed changes.

“This would allow for a much simplified process,” said Leah Youngblood, city planning and development director. “It would also give hosts certainty about where they could have this type of use.”

The changes were initiated by the city manager, Youngblood said, and there haven’t been recent problems with specific rental sites. The new rules would give rental owners in residential areas five years as a way to recoup some of their investment.

“After five years they would need to cease operating it,” she said.

Neighborhood rental sites

Tom Roper argues for short-term rentals with his answer to a question at the heart of rental rules in recent years — whether they’re homes or businesses.

“They’re residences,” Roper said. “They’re not commercial. It may be operated that way but the physical structure is a house where rooms are rented.”

Roper said his wife operates a rental, and companies like Airbnb use host and customer ratings to make sure there aren’t widespread issues like noise, safety or other concerns that neighbors may have. Roper said the proposed changes address where rentals can go but not any specific problems they’re causing. That’s because, he said, they aren’t.

“If there are problems controlling short-term rentals, then come up with some regulations that address that,” Roper said.

Rental sites owner Tom Hutto said the lawsuit he filed against Rock Hill this year over property restrictions is the reason the city proposed the latest changes. Hutto said the city wants to put him out of the rental business.

He said his dozen rentals have contributed $44,000 in new taxes and employed 10 people.

“We’ve had zero problem, zero parties, 100% compliance,” Hutto said.

Most of the dozen residents who addressed the planning commission said they were against the proposed changes.

Russ Frase said there are historic homes with plenty of square footage that may have one couple living there. He owns a similar property. Frase doesn’t believe people who live in homes should be limited in how they use extra rooms.

“If you live where the people are staying, certainly the problems will be alleviated,” Frase said.

For people who bought homes and use them entirely or partly as short-term rentals, the pending city decision is significant.

“You’re going to put people out of business,” Roper said, “and you’re taking their property without just compensation.”

Neighbors and community

Resident Zach Zapack told the planning commission he believes both short-term rentals and the traditional hospitality industry are important as Rock Hill grows. “We’re not against the short-term rentals,” he said. “We are against unlimited short-term rentals.”

Zapack said other areas of the country have had problems with affordability and availability of housing, as homes are taken up for use as rentals. Zapack supports taking short-term rentals out of areas zoned residential.

Former York County Councilman Rick Lee agreed there is a place for rentals, but that it isn’t in neighborhoods. “I don’t know of neighborhoods who have ever come out in support, broadly, for unlimited short-term rentals,” he said.

Tourism, specifically sports tourism, is significant in Rock Hill. Lee said it’s legitimate to have short-term rentals for those guests.

“They’re part of the formula for addressing the need for accommodations for tourists,” he said.

But, Lee said, those rentals are commercial transactions, and like many other businesses shouldn’t be allowed in residential neighborhoods.

“We need people who live here, to make this community what it is,” Lee said.

City council decision

City council will have to vote twice in favor of the changes for them to take effect. A public hearing is needed, and the council can make an initial decision Monday night.

The planning commission doesn’t support the changes members say aren’t needed.

Commissioner Jonathan Nazeer said people who live on-site and rent rooms shouldn’t be lumped in with the business model approach where the owner isn’t present. Commissioner Stephanie Haselrig isn’t opposed to regulating short-term rentals, but believes that’s what they city did last year.

“I feel like we’re just eliminating it with what’s been proposed,” Haselrig said.

Graham said current rules have been in place a year, and there hasn’t been any issue come up that shows they aren’t working.

“I really don’t know why we’re even looking at this,” Graham said.