Historical Review of Short-Term Rental Debates in Cape Charles

Cape Charles — The issue of short-term rentals (STRs) in Cape Charles, Virginia, has been a contentious topic over the years, reflecting broader trends and challenges faced by many communities grappling with the rise of platforms like Airbnb. The debates in Cape Charles have focused on regulatory, financial, and community impact concerns.

The follwing is based on the minutes from previous Town Council meetings on STRs.

Early Discussions and Initial Concerns (January 2019)

In early 2019, the Cape Charles Town Council began to address the growing concerns around short-term rentals. Town Manager Larry DiRe highlighted the need for enhanced observation and enforcement of STR units, particularly regarding compliance with licensing, inspection, and tax regulations. Council members expressed worries about the impact of STRs on the community, noting issues such as increased neighborhood congestion, reduced availability of long-term rentals, and a transient population that did not contribute to the year-round community needed to support local businesses.

Public Hearings and Strategic Planning (March – June 2019)

As the year progressed, the Town Council held multiple public hearings and work sessions to further delve into the complexities of STRs. Councilwoman Holloway emphasized the need for a dedicated work session to explore the financial and community impacts of STRs. The council aimed to understand how many rentals existed compared to permanent residences.

By June 2019, the discussion had shifted towards the regulation of homestay accommodations. The Planning Commission and Town Council began considering various regulatory measures, such as occupancy limits, parking requirements, and the establishment of a formal registry of STR properties. These measures were intended to address issues like overcrowding, trash management, and ensuring properties met health and safety standards.

Developing and Refining Regulations (August – October 2019)

In August 2019, Town Manager Larry DiRe revisited the issue of regulating homestay accommodations. The proposed recommendations included limiting the number of STR units per property owner, enforcing occupancy limits, and creating a registry for STR properties. The council also discussed the impact of STRs on the historic character of Cape Charles, drawing parallels to concerns raised in other historic districts like Savanna.

By October 2019, the council was working towards finalizing an ordinance to regulate STRs. Key points of discussion included the management of garbage cans, the necessity of a registry for auditing purposes, and the classification of seasonal vacation rentals as tourist houses.

The debate over short-term rentals in Cape Charles has evolved from initial concerns about compliance and community impact to detailed discussions about regulatory measures. The town’s approach has been questionable–are they really trying to balance the economic benefits of STRs with the need to preserve community integrity and ensure safety and compliance? As of late 2019, the council was giving lip service to implementing structured regulations to manage the growing presence of STRs effectively.

The challenges posed by the short-term rental market have strained the town’s unique character and sense of community. This is inconveniant for some, but it must be recognized. More and more citizens are jetizening the idea of Cape Charles and moving out. This writer knows of four in last 18 months. As full-timers leave, the vacum is readily filled with more STRs.

One citizen told the Mirror, “Just learned this week that another friend in historic district is listing their house next week and 2 others are considering it. They are fed up with Town Council showing no inclination to cap STRs. Somehow Town Council must think we will continue to volunteer for all the things that make the town attractive to tourists and all we get is higher taxes and fewer neighbors”.

A citizen also noted in an email, “The Civic League connected with the people in Hampton who are involved with their STR policy. They have a zoom meeting set up with them. No one on Town Council or the Town Manager were interested. With only 2 exceptions, this is the same Council that was in place in 2019…and they have done nothing. How many STRs have been added since then? How much affordable housing lost?”

Is there more going on than meets the eye? The powers at be have some explaining to do.