Hamilton sees positive response to its short-term rental license

But Ohio House Bill 563 ‘ties the collective hands of local leaders’
The city of Hamilton has approved 14 short-term rental licenses and have about five more applications for licenses pending. The licenses are free for owner-occupants who want to use their property as an accessory short-term rental, and is $50 for all other applicants. “The license really tries to strike that balance between allowing people to use their homes as short-term rentals while also making sure we protect the neighbors who when they bought their house maybe weren’t visioning having different people in the house next door to them every weekend. It’s just trying to find that balance," said Hamilton Director of Planning Liz Hayden. PHOTO PROVIDED/CITY OF HAMILTON

Credit: Provided/city of Hamilton

Credit: Provided/city of Hamilton

The city of Hamilton has approved 14 short-term rental licenses and have about five more applications for licenses pending. The licenses are free for owner-occupants who want to use their property as an accessory short-term rental, and is $50 for all other applicants. “The license really tries to strike that balance between allowing people to use their homes as short-term rentals while also making sure we protect the neighbors who when they bought their house maybe weren’t visioning having different people in the house next door to them every weekend. It’s just trying to find that balance," said Hamilton Director of Planning Liz Hayden. PHOTO PROVIDED/CITY OF HAMILTON

Hamilton encourages homeowners and property owners to be short-term renters, but city officials want to make sure problems are nipped as soon as they arise.

At the end of 2020, City Council approved legislation that would create short-term rental licenses for property owners in the city. The two-year licenses are free for owner-occupants and $50 for all other applicants. The program took some time to get up and running, and Hamilton had been taking applications for less than six months.

So far, 14 licenses have been issued, five more are pending review and consideration, and so far there have been no problems, said Hamilton Planning Director Liz Hayden.

“The license really tries to strike that balance between allowing people to use their homes as short-term rentals while also making sure we protect the neighbors who, when they bought their house, maybe weren’t visioning having different people in the house next door to them every weekend,” she said, adding the city isn’t opposed to short-term rentals existing in the city.

However, House Bill 563 could threaten the city’s ability to license short-term rentals, say dozens of opponents to the bill, according to House Local Government Committee testimony. Though, there are dozens more who support the bill.

Sponsor Rep. Sarah Fowler Arthur, R-Ashtabula, said some local governments across the country “are arbitrarily closing their doors and prohibiting property owners from offering short-term rentals” and said her bill with joint sponsor Rep. Ron Ferguson, R-Wintersville, is a “proactive” attempt to “ensure that every private property owner in Ohio retains their constitutional right to lawfully use their property to support themselves and their family, including through short-term rentals.”

According to the bill, the state would prohibit local governments from adopting or enforcing any regulation, restriction, resolution, or ordinance that “regulates the number, duration, or frequency of rental periods for short-term rental properties.”

Hayden said land-use regulations “should be uniquely crafted to meet the needs of individual communities” and this bill “ties the collective hands of local leaders.”

“In some cities and townships of Ohio, short-term rentals are not problematic, and regulations have never been considered,” she said. “But in other communities, local legislative bodies have been empowered to find the balance of interests between short-term rental operators and residents appropriate for their community.”

The city had experienced an influx of short-term rentals due to the Spooky Nook Sports Champion Mill, the 1.2 million-square-foot multi-event complex with a convention center and hotel, and it is anticipated to spur more than 1 million visitors annually to the city after it opens later this year.

Hamilton’s regulations are aimed at finding a balance between allowing property owners to use their properties as short-term rentals and addressing concerns from neighbors.

Hayden said the city is encouraging responsible owners of short-term rental properties, such as AirBnBs and VRBOs (Vacation Rentals by Owners). The city, through the licenses, can penalize people who are creating issues in the city’s neighborhoods and can revoke the licenses and issues fines. They also have a 24-hour contact if problems arise.

To date, there has not been any pushback or problems since the city began issuing the licenses, Hayden said.

“The goal would be that anyone that wants to use their property as a short-term rental that they will get the license as long as they aren’t creating issues for their neighbors,” she said.

Ohio Municipal League Executive Director Kent Scarrett said on Wednesday the bill preempts a city’s Home Rule authority, adding it “prohibits municipalities from creating necessary regulations that protect the safety and best interests of the residents in each individual community.”

The Ohio Legislative Service Commission, the agency that provides the General Assembly with, among other things, bill analysis of proposed legislation, said House Bill 563 “may raise an issue” under the Ohio Constitution’s Home Rule Amendment, which states “municipalities shall have authority to exercise all powers of local self-government and to adopt and enforce within their limits such local police, sanitary and other similar regulations, as are not in conflict with the general laws.”

The Butler County Commission has also been considering regulating short-term rentals. According to a presentation by county Planning Administrator Zeb Acuff, regulations are needed as they expect there will be “spillover” into Hanover and Ross townships from people wanting to capitalize on droves of visitors to Spooky Nook Sports Champion Mill.

He said they have rules in the rural zoning code regarding bed and breakfast establishments but don’t address AirBnBs and VRBOs. He proposed limiting the number of guests to eight, requiring building inspections, and “require licensing with the auditor to capture lodging facilities tax.”

The commissioners weren’t too keen on the idea.

Commissioner Don Dixon asked: “Who is going to enforce all this are you going to get an army or what?” He said increasing regulation is not a good thing.

“We already have plenty of rules and regulations and this does not address the issue this board has always dealt with and that’s less government,” Dixon said. “You try to go in people’s homes now to learn whether they’ve rented their house out one night or two, and sign this and pay a tax, I think we’re going in the wrong direction.”

Acuff said they have been getting calls about the rules that don’t exist at this time.

“I’m not sure I’m buying into ‘there is a need for it,’” said Commissioner Cindy Carpenter. “If there’s a problem we’re addressing that’s great. If the problem is only that people are calling to ask, I’m not sure that’s a problem that needs more governance. You haven’t convinced me yet that this is a challenge.”

Commissioner T.C. Rogers said there is a problem when people are renting out houses in the upscale neighborhoods, “where there’s been $1 million houses rented out for the weekend.”

“That’s a problem with the surrounding neighbors,” he said.

Gary Salmon, Oxford Twp. trustee and president of the Ohio Township Association said it would be helpful to know where these rental units are. He said in Oxford there have been people buying properties to establish temporary rentals.

“Especially up where I’m at in Oxford and Miami University, if we end up with students or something like that and we get police calls, we would like to know whether this is an AirBnB possibly,” Salmon said. “Or is this a homeowner when you’re going in there, if they’re tearing up their own house okay, but if they are destroying somebody else’s property is another thing.”

Dixon said they need to rethink these proposed regulations and “simplify it, keep it so it makes sense and so we don’t have to put on an army to try and enforce it, which you can’t do.” Carpenter agreed.

Hayden said the city of Hamilton took the best practices of major destination cities, like New Orleans, San Francisco and New York City, who “have been dealing with short-term rentals for many years. There’s a lot to learn.”

“The community, when we did the initial surveys, the community was very supportive of allowing short-term rentals in the city, and so far they have not created major problems, and we’re just trying to get ahead of it and make sure we have the right things in place for the rare occurrence there is an issue,” she said.