Across a row of easels at Forest Hills Elementary School, each displaying information about Wilmington’s policies toward short-term rentals, a Post-it Note debate raged over whether the Internet-booked rentals were helping or hurting the city’s downtown and historic district.
The sticky notes, part of a city-sponsored public input session Thursday, March 22, revealed the wide range of opinions citizens have on the new economy controversy that is creating discord in cities around the world. One note said short-term rentals should be allowed if the property owner lives there, while another advocated regulations. A fair share of notes said short-term rentals should be banned outright, while others warned the Internet would make that exceedingly difficult to accomplish.
At issue are the short-term rentals that are booked through Internet sites like AirBnB and VRBO. In December 2015, the Residents of Old Wilmington wrote the city and asked for stricter regulations on short-term rentals. Historic preservationists said they worry the rentals are hurting the neighborhoods that are drawing the crowds, with city councilman Kevin O’Grady sharing their concerns, saying the proliferation of short-term rental units threatened to undo 40 years of work building Wilmington’s historic district.
“If they use their house to make money, that is a business, it’s not residential,” O’Grady said. “It’s not about money, it’s about neighborhoods. It’s damaging our neighborhoods.”
But several property owners see the short-term rentals as part of the revitalization of the city’s downtown. Brian McManus, who owns properties in Wilmington that are used for short-term rentals, said the rentals are a boon for tourism.
“They have revived so much of downtown. It’s bringing in vacationers while creating steady tax revenues and jobs,” McManus said.
In some cases, the short-term rentals are set up next to long-time residents, as O’Grady recounted the situation with one 30-year townhome owner who now has short-term rentals on both sides of the residence. The result, he said, was the loss of neighbors and a further disconnection from the neighborhood.
Short-term rentals aren’t prohibited in Wilmington, but the minimum rental time for most residential zoning is seven days. O’Grady believes that many property owners are skirting the rules and booking weekend stays.
Tricia Ireland owns a duplex and rents one unit for short-term rentals, putting her on site to handle any issues with the renters or the unit. However, most property owners said they don’t live on site, and rely on property managers.
“The city can’t be short sighted about this,” Ireland said. “The problem is bad owners, not bad renters.”
Ireland believes there shouldn’t be a time limit, but also, that rental owners should be regulated by the city. She said she would approve of the city licensing, regulating and inspecting short-term rentals, which could include rules that require property owners have a property manager in the area that could respond to urgent issues. She believed that all of Wilmington outside of the central business district should be open for short-term rentals.
Rachel de Faut, a property manager who fills short-term rentals in downtown and Sunset Park, said that most short-term renters have respect for the neighborhood that they are visiting. Renters can be corporate or families, who often want a rental where they can bring kids, grandparents and pets to a property and has the qualities of home.
She said the idea that downtown rentals are catering to a party environment doesn’t fit the profile of her clients.
“They may have drinks and cigars on the porch after a wedding, but it’s not the beach scene,” de Faut said.
McManus said the seven-day rental is too long, as shorter stays create more needs for cleaning, maintenance and other ongoing job services. He said several downtown homes were large and made better use for rentals than for home sales. Crucially, short-term rentals also present an opportunity for downtown Wilmington and the historic district to better compete with Wrightsville Beach for tourism.
For Pennie Coussit, short-term rental properties gave her an opportunity to make income after her job in the film industry disappeared.
“I invested in a new job,” she said of the two properties she owns. “This is a new industry and just like the food trucks and Uber and breweries and other new businesses, they need time to develop.”
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