The Situation and FAQ

Why are short-term rentals a problem?

Non-owner occupied short-term rentals can pose several challenges and concerns in communities:

1. Disruption of Neighborhoods: Constant turnover of short-term renters can disrupt the stability and sense of community in residential neighborhoods. 1000’s of strangers each year staying on quiet residential streets with no record of who they are.
2. Noise and Disturbances: Short-term renters have less interest in maintaining peace and quiet in the neighborhood, leading to increased noise levels and disturbances.
3. Parking Issues: With a high turnover and the number of guests usually exceeding the # of people that would normally live at a property, parking spaces become scarce, inconveniencing residents.
4. Safety Concerns: Non-owner occupied rentals by their business model involve high turn over and no tracking of who is staying at the property. Should one of these transients commit a crime, it is very hard to track the offender down.
5. Impact on Housing Affordability: Short-term rentals contribute to a decrease in available long-term rental housing stock, leading to higher rents and reduced affordability for local residents.
6. Loss of Community Character: The influx of short-term renters can change the character of a neighborhood, as it results in fewer long-term residents who contribute to the community’s social fabric.
7. Regulatory Challenges: Non-owner occupied short-term rentals can present challenges for local governments in terms of regulation and enforcement, especially if there are no specific rules in place to govern their operation.
8. Negative Effects on Local Businesses: Instead of spending money locally, many short-term renters opt for bringing their own food and beverages, as evidenced by common complaints of excess trash.
9. Loss of Tax Revenue: Non-owner occupied short-term rentals do not contribute as much tax revenue to the community compared to permanent residents or long-term renters, impacting funding for essential services and infrastructure maintenance.

What are the current zoning regulations in Wilmington?

These properties are all considered illegal based on commercial use in a residential area. Wilmington considers these defacto hotels, not rental properties, and are not permited. Due to outdated ordinances, Wilmington enforcement is reduced to using zoning violations retroactively to stop these illegal operations.

What regulations are in place in NCC & Dover?

NCC restricts use of residential properties for transient stay (less than 45 days) to owner-occupied properties only under Code 40.03.100. NCC has started strictly enforcing its code. If you know of a violation in the county, report it and they will act.

Dover City Council adopted Ordinance 2020-05 on January 11, 2021. The ordinance states that the owner of the property being offered as a Short Term Rental Use must be a resident of the City of Dover and such owner may offer for Short Term Rental Use only that property which is the owner’s primary residence.

What do the proposed city regulations change?

1. Restricts short-term rentals (less than 30 days) to owner-occupied units only. This allows the room-in-house model but prohibits whole house rentals.
2. Prohibits separate building entrances visible from the street from being used for the sole use of the limited lodging.
3. Requires owners of short-term properties to obtain a city permit for operation.
4. Limits operation of short-term rentals to 1 property per permit.
5. Ensures that owners and operators of short-term rental properties, and online platforms engaged in the business of facilitating or booking short-term rentals pay their fair share of taxes and fees.

See the full propsed legislation ORD. 24-018 on the Wilmington City Council website: https://www.wilmingtoncitycouncil.com-legislation/