Cape Charles, Virginia – The Town of Cape Charles finds itself at a crossroads as it endeavors to strike a delicate balance between the needs of its full-time residents and the burgeoning presence of short-term tourist vacation rentals.
Cape Charles and Northampton County have steadily seeded and grown a robust tourist economy. No industry was vital enough to sustain the town or the county. The railroad that built this town was receding into a vanishing point, leaving just Bayshore Concrete as the major, yet limited industrial driver.
The decision was made, both politically and culturally, to exploit the hidden gem we call the Shore, and turn it into a tourist destination.
No place along the Eastern seaboard has been more successful in transitioning from an industrial base to a tourism base than the Town of Cape Charles. The boarded-up houses and storefronts are a thing of the past—this is wholly due to the influx of tourists. Cape Charles boasts a rich tapestry of history, culture, and natural beauty, making it an increasingly popular destination for travelers seeking relaxation and rejuvenation. It is truly a top vacation spot for families.
Amidst this allure, however, lies a pressing concern: the impact of short-term vacation rentals on the fabric of the community.
A tourist economy needs tourists, and tourists need a place to stay—enter short-term (vacation) rentals.
For many residents, the influx of vacation rentals brings benefits and challenges. These rentals serve as an economic lifeline, injecting vital tourism dollars into local businesses and supporting the livelihoods of residents who depend on the hospitality industry. Moreover, they offer visitors a glimpse into the town’s unique charm, fostering a sense of connection and appreciation for Cape Charles.
Conversely, concerns have arisen regarding the potential strain on housing availability and affordability, as some properties are converted into vacation rentals, limiting options for full-time residents. Additionally, the issues of noise, parking congestion, and transient populations have sparked debates over the town’s identity and livability.
The complaints of full-time residents are real—however, the concrete material reality is that you now live in a tourist destination, and there may be no way to put the genie back in the bottle, no way to recapture little lost Gloria or the quiet town of 20 years ago.
Some full-time residents are lobbying for a proactive approach that includes initiatives such as zoning regulations, occupancy limits, noise ordinances, and taxation policies aimed at mitigating STRs. Some residents want a moratorium on new STRs, while others want a hard cap on actual numbers.
That may not be that easy, or even possible. The Virginia General Assembly has limited local governments’ power over the Short-Term Rental industry.
SB 544, introduced by Sen. Lamont Bagby, D-Richmond, prevents localities from implementing certain new short-term rental requirements. However, it would not overturn requirements already in place (Cape Charles currently does not have an ordinance for STRs). Specifically, the bill says that no local ordinance enacted after December 31, 2023, shall require that a special exception, special use permit, or conditional use permit be obtained for a residential dwelling being deployed as a short-term rental.
While not 100% sure about all of the implications, it appears that SB 544 erodes the ability of localities to regulate and address any potential impacts from the operation of short-term rentals, and places STRs in a “by right” status. A more thorough and accurate interpretation of the law is welcomed in the comments section.
Note: Virginia Senate Bill 544 (SB 544) passed the House of Delegates by a vote of 52 to 38 on February 29, 2024, and the Senate on February 9, 2024 by a vote of 25 to 15. The bill was signed into law on April 17, 2024.
The STR debate generally splits into two camps: those who want the government to regulate the STR industry, and those who want to let the free market shake things out.
Those in favor of government control argue that regulation is necessary to address potential negative elements associated with short-term rentals, such as noise disturbances, parking issues, and impacts on housing availability and affordability. They want the Town Council to establish and enforce zoning regulations, occupancy limits, safety standards, and taxation policies to ensure that short-term rentals operate responsibly and contribute to the well-being of the community—they want the government to actively work to maintain the character of the town.
Advocates for free market control contend that excessive government regulation can stifle innovation, entrepreneurship, and economic growth. They argue that market forces, driven by supply and demand dynamics, are better equipped to determine the optimal distribution of short-term rental properties, allowing for greater flexibility and responsiveness to consumer preferences. In a free market system, owners manage their property as they see fit, fostering competition and innovation while maximizing economic efficiency.
The worry for some residents is that, while some STR owners have worked to become part of the town, can residents trust the market and business to always act in the community’s best interest?
Last week’s meeting on STRs exposed the open wound that has been festering in Cape Charles. As the town navigates this nuanced terrain, the quest for equilibrium between residents’ needs and the allure of short-term vacation rentals seems more difficult as the Town continues to grow and flourish economically (largely due to tourism).
Finding common ground may prove to be very difficult.
The town council is getting squeezed and has the unenviable task of eventually having to do something. Whatever it chooses will certainly be wrong for somebody, that much is certain.
The phrase “the path to salvation is narrow and as difficult to walk as the razor’s edge” (kṣurasya dhārā) is an apt metaphor for the town council’s task.
Then again, maybe Cool Hand Luke may be more appropriate, “Sometimes Nothing can be a real cool hand”.
Let us hope the Town Council has the wisdom to choose the best bad option.
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The full title, and summary, of SB544 indicate that the law prohibits “a locality from barring . . . the use of a residential dwelling [including an accessory dwelling unit] as a short-term rental . . . [AS LONG AS IT IS] legally occupied by the property owner as his primary residence.”
Could this law show one way for Cape Charles to retain homes for permanent residents 12 months out of the year, while providing short-term rentals for tourists 12+ weeks out of the year?
That is my understanding as well. The vacation rental most have the owner in residence, much like a B&B. That would mean someone is there keeping an eye on the actions of their guests and could help mitigate at least some of the negative
impacts. Waiting on the legal take on this to be 100% sure this is a accurate.
Editor’s Note: I think it just states that it has to be listed as the “primary” residence…you can live 12 months in DC and still call it your primary. Many times this is done for tax reasons.
Not if you have to present a driver’s license or a voter registration card (which lists your permanent residence) in order to receive a license to operate a short-term rental.
Maybe, I’m not a lawyer but it reads ” LEGALLY OCCUPIED + “PRIMARY RESIDENCE”
Short-term rental property; special exceptions. Prohibits a locality from barring the use of or requiring that a special exception, special use, or conditional use permit be obtained for the use of a residential dwelling as a short-term rental where the dwelling unit is also legally occupied by the property owner as his primary residence
If the Law won’t allow control of str, then the discussion ends now.
However, if anything can be done about the slow destruction of Cape Charles maybe there is some hope. One thing is obvious to the most casual observer is the complete total lack of logical thinking. You are so right ( to coin a cliche, the train has left the station, you can’t put toothpaste back into the tube) str can’t be reduced but should be capped. I personally don’t know of any business failing, thus they must be generating enough revenue to stay in business with the current level of summer people. The same old argument we need these people for our business. They all are doing booming business in the summer. Have you ever tried dining out?
Hope Is Not a Strategy
STRs are not going away. I remember in my teens (1960’s) me and my ‘boys’ used to visit a little town that didn’t have much to see; maybe a 7-11, donut shop, package good store, a motel or two and a great ocean beach. It was called Rehoboth. Anyway, if you can’t beat ’em; join ’em. If you can’t join ’em you better consider hitting the road.
Note: As usual, Mr. Burke hits the nail on the head. If you purchase an expensive home in CC, by right, you will be able to rent it out. It’s odd watching people that, by choice live in a tourist town, complain that it’s a tourist town.
Note: As usual, Mr. Burke hits the nail on the head. If you purchase an expensive home in CC, by right, you will be able to rent it out. It’s odd watching people that, by choice live in a tourist town, complain that it’s a tourist town.
AMEN, SUCK IT UP
Cape Charles just happened to be people’s home, long before others were taking ‘vacations’.
AMEN!
The needs of its full-time residents?
Where and when has that been happening, that these people who are the POWER in Cape Charles (L’etat c’est them), and who have STR’s themselves and being the POWER, are holding the whip hand as the board members, have actually gave a hoot about the needs of its full-time residents?
That would make for an interesting story to hear.
Is ‘Short Term Rental’ so hard to type or pronounce for you all? I thought ‘ebonics’ was bad enough.
If you are looking to pay your mortgage by renting out your property, you can’t afford it to begin with.
TRUTH! Thank you, sir!
I live about 7 miles from Cape Charles and used to shop, get haircuts and go to the Beach, Shanty, Medical Center and Rayfields.
Not any more…
The idiots and children driving golf carts, absurd parking and 25 mph speed limit has become a bit too annoying.
I now just burn the gas and go up the road.
Just another tricky day…
If you own a home you should be able to do whatever you want with it. STR’s not only bring tourists into Cape Charles but also provides tax revenue which would otherwise be absent. I’m sure all the small business owners in town who rely on full restaurants and shops enjoy STR’s. Keep the government out of it!
You cannot do whatever you want with your house. We have zoning ordinances.
I axed you:
Why did you not use the trail that ran along the R/R tracks before?
Wasn’t quite good enough for you?
There is a balance that is somewhere between these two stances. However as usual these days nobody is willing to take a moderate approach to this or anything else. That’s what is sad. CC was almost boarded up and gone. Do people not remember this? Now the same people that were complaining about a failing town are now complaining about its revival. We have more laws and regulations now that aren’t enforced and you want more? There is no right or wrong answer and that’s ok. So many people today act is if their hair is on fire when they are the ones who set it ablaze