Short-term vacation rental vote delayed

But City Council approves limiting occupancy rate.

Tybee Island City Council postponed a decision to cap the number of short-term vacation rentals allowed in residential areas, opting instead to adopt an maximum occupancy rate and extend a 90-day moratorium on permits to April 30.

Addressing the rentals, which are classified as properties rented to guests for 30 days or less, has been a council priority throughout 2021. Proposed ordinances regarding the cap and occupancy rate were put before council earlier this month, setting up the recent rulings.

The maximum occupancy rate limits short-term vacation rentals, or STVRs, to two adults per bedroom plus an additional two adults for the entire dwelling.

The moratorium, meanwhile, bars properties from registering as a vacation rental if they aren’t already operating as one. It was originally set to expire in December.

The moratorium’s extension gives council more time to continue studies and conduct hearings on how to regulate STVRs on the island, an issue that has continuously divided residents. Vacation rentals are the primary lodging option for visitors on the island, according to hotel-motel tax data, and many longtime or permanent residents see continued proliferation of STVRs as a threat to their sense of community.

Others island residents and property owners view the proposed regulations and restrictions as a threat to their property rights and source of alternative income.

During the moratorium, which started in September, the council so far has conducted surveys, held town halls and implemented the occupancy rate and a fee structure based on that rate. Each year a property renews its STVR permit, a fee based on the listed occupancy must be paid.

The moratorium has also allowed city officials to gather data on the number of vacation rentals in residential areas and propose limits. Initially, the cap was set to 760, which is believed to be the existing number of STVR-permitted properties. That’s about 38% of total properties in residential neighborhoods.

However, the methodology for coming up with that number has been contested by STVR management companies. Tybee Island Association of Rental Agents (TIARA) claims there are closer to 811 existing STVRs in residential zones.

Other questions remain as well. In the event a cap is established, it’s unclear who will get priority in applying for an STVR permit when the number of rentals dips under the limit. Council has also bounced around ideas about a possible compassion clause, which will give certain owners facing economic hardship priority in applying for STVR permits.