By Greg Ellison

(July 1, 2021) Reviving talking points from several years ago, the Berlin mayor and Town Council on Monday returned to the discussion of short-term rental licensing regulations.

Planning Director Dave Engelhart said the issue was raised in 2018 without any further action taken.

“The intent is to maintain the character of the residential town and protect health, safety and general welfare,” he said of the regulations, which were hailed and condemned when the subject was explored three years ago,

The greatest concern expressed by local property owners at that time involved the possible harm short-term rentals might do in R-1 and R-2 single-family home districts.

Another issue raised by residents was the possibility that investors would buy multiple properties to serve as rental units.

Short-term rentals are defined as property rented for up to 28 days, with longer stays deemed month-to-month.

Engelhart said bed-and-breakfast establishments would not be included in the proposed rental ordinance.

In addition to restricting short-term rentals to permanent residents whose properties are owner-occupied at least 180 days annually, the licensing process would also require safety inspections and occupancy limits.

“If someone is applying, with the ordinance there would be an application that we develop and collect a fee,” he said.

Engelhart recommended an initial inspection fee of $150 followed by an annual license renewal charge of $200.

“We would also need a 24-hour emergency contact,” he said.

Engelhart said the responsible party would need to live within a 30-minute commute to respond for noise or other reported violations.

“Occupancy goes by the housing standard section of existing [town] code,” he said.

Under town code, the first occupant would require 70 square feet of living space, with each additional guest requiring 40 square feet.

Engelhart also conferred with Berlin Police Chief Arnold Downing to coordinate off-street parking requirements.

“We don’t want to be jamming up the streets further,” he said.

If Berlin were to enact short-term rental procedures, inspection and licensing data would be shared with Worcester County officials, who would be responsible for collecting room tax.

“I believe room tax would net Berlin 1 percent,” he said.

The proposed ordinance would prohibit signs and prohibit guests of short-term rentals from holding large gatherings, such as birthday or bachelor parties.

In similar fashion to civil infractions, short-term rental violations would result in an initial fine of $100, with subsequent instances costing $200.

“It can be $200 per day the way our code is written,” he said.

Repeated violations could result in short-term rental licensing being suspended for up to three years.

“The license is non-transferrable,” he said.

Councilman Jay Knerr inquired about the current number of short-term rentals in Berlin.

Engelhart said after surveying social media and online rental platforms, such as Airbnb or VRBO, fewer than 20 properties within town limits were identified.

Engelhart said the bulk of those are located in R-1 and R-2 districts.

Knerr also asked about timeframes for enforcement of noise ordinances.

Downing said the time of day is not an issue for reporting noise complaints.

“Residents can call anytime for unseemly noise,” he said.

Engelhart said his department works with Downing to share any reported rental issues.

“It gets enforced from both sides,” he said. “It would be complaint-driven enforcement.”

Councilman Dean Burrell suggested that the complaint process be made clearer.

“We have to be clear about this process and how the complaints get to either of you,” he said.

Arnold said his department works hand-in-hand with Engelhart.

“Calling one is calling the other,” he said.

Engelhart said any short-term rental ordinance would not have to include violation details that are already contained in current town code.

“This ordinance is not the place to list all the things in Berlin that are a violation [because] it would take five pages,” he said.

Engelhart also questioned the extent of problems tied to short-term rentals in Berlin.

“This is a solution in search of a problem,” he said.

The issue for many critics of short-term rentals boils down to unfamiliar faces.

“The major problem people have is every weekend there are different visitors,” he said.

Councilwoman Shaneka Nichols questioned the level of compliance anticipated.

Engelhart said residents have traditionally been more prone to report unlicensed rental properties than to call regarding noise or other violations.

While instituting rental licensing would be difficult initially, Engelhart said the task would likely ease after properties are registered.

“I’m not looking for it to be an enforcement nightmare,” he said.

Engelhart said short-term rental proponents often argue lot owners are within their property rights to offer limited-run accommodations.

Nichols also inquired about limiting property owners with multiple lots from renting out numerous spots.

Engelhart said including language specifying the need to be a “permanent resident” was a design feature intended to stifle that potential.

Taking exception with that approach was Colin Zimmerman, with the Coastal Association of Realtors.

“The requirement of 180-days residency is effectively a ban on short-term rentals,” he said.

Under the proposed guidelines a Berlin property owner with multiple homes would be restricted from renting out the second lot, Zimmerman argued.

“Renting your home is not a business, it’s a residential property right,” he said.

Zimmerman said the inclusion of an emergency contact in close proximity is intended to address complaints in a timely manner.

“That’s how a lot of it is dealt with,” he said.

Mayor Zach Tyndall re-iterated that the discussion was merely a return to earlier talks, with no immediate action required.

“We don’t need to pass an ordinance,” he said.

Tyndall said town code would be largely sufficient to address rental violations.

“We might just need to establish licensing and fees,” he said.

Engelhart also championed including an owner-occupancy mandate.

“Owner occupancy allows persons with permanent residences to rent out when they are absent,” he said. “If it’s a primary residence, they have some skin in the game.”

Another alternative would be banning short-term rentals in R-1 and R-2 zones.

Raising concern with the proposed ordinance was Berlin-resident Todd Martinek, who manages numerous rental properties in town.

“My owners don’t have a problem with regulations but let them make a living, let me make a living and the town make more money,” he said.

Nichols maintained her opposition.

“I don’t want us to open our doors to be what Ocean City is,” she said.

Martinek proposed registering current rental properties and limiting future growth.

“We are looking for problems that aren’t there and I’m OK with that because I live here too,” he said. “I lived next to short-term housing and I’ve never had a problem.”

Burrell said greater public input is needed.

“I would like to hear from ‘Joe Blow’ homeowner that possibly lives besides one of these,” he said.

Tyndall and other council members agreed with Burrell.

“This is the first of many conversations to come, including public comment opportunities,” he said.