Milton planners finalize report on short-term rentals

The Milton Planning Zoning Commission finalized an advisory report and ordinance language on short-term rentals that will be sent to town council for consideration.

The issue of short-term rentals – and the town’s attempt to do something about it – came from the rise in Airbnb- and Vrbo-listed properties and concerns on the part of both residents and town officials that this will lead to the town becoming inundated with vacation rentals instead of owner-occupied properties. Both council and the commission have expressed a desire to get ahead of the issue before it becomes a bigger problem.

The commission finalized its report March 18, after holding two public meetings and a public workshop to brainstorm and solicit feedback. In addition, the commission studied similar ordinances from surrounding towns, including Lewes and Rehoboth Beach, and much of the language in the commission’s proposal is based on Lewes’ regulations.

The report and ordinance defines short-term rentals as a residential dwelling unit that is rented for 30 days or fewer. The maximum occupancy of a short-term rental would be two people per bedroom with an exception for children 6 years old or younger. The rental must have a local contact person available 24 hours a day to take phone calls about potential problems and to be physically present on the property within one hour. Complaints would be handled at town hall during regular business days or by the police at all other times. Both town hall and the police will have the telephone number of the local contact person.

Guests at short-term rental properties cannot hold commercial activities or events open to the public, and the owner is responsible for providing a good neighbor brochure, which the town would provide, to every renter. Advertising for the rental must include information such as the occupancy limits, prohibition on commercial activities and parking information. 

Finally, three or more violations of town regulations on short-term rentals would be grounds for the unit’s license to be revoked and have a new license delayed by one year.

One thing not in the commission’s report is a recommendation regarding whether to impose a gross receipts rental tax on short-term rentals. The report states that other local municipalities have such taxes: Lewes at 7%, Rehoboth at 9%, Dewey at 3% and Ocean View at 5%. The commission said council should consider a tax because of the additional staff time that will be required to enforce the new regulations.

During the public comment portion of the March 18 meeting, resident Dean Abbott said his hope for the ordinance is that the commission will use it as a chance to limit short-term rentals in downtown Milton. He said outlying developments such as Heritage Creek or Cannery Village have restrictive covenants that prevent homes from being used as short-term rentals. 

Abbott said Lewes and Rehoboth aren’t really good comparisons, since the former is so expensive to live in that short-term rentals aren’t really a problem and the latter is a resort town. He said the more apt comparison is a town like St. Michaels, Md., that does have a restrictive ordinance on short-term rentals. 

“We are Ground Zero in old Milton, so we have to do something to limit their proliferation,” he said.  

Bernard Miller said he owns two Airbnb properties in Milton and that much of what is in the ordinance is already in the contract for Airbnbs. He said he wished the commission would have reached out to Airbnb owners like himself, and that he has not had any problems with short-term renters.  

“I’m not really sure what you guys are trying to accomplish,” Miller said. “Ninety percent of the people who rent from us are families that have kids that are playing in tournaments at Sports at the Beach or at DE Turf. I have a lot less problems with the people who stay short-term than I did when I had long-term renters.”

Town council is expected to discuss the ordinance in April.