Short-term rentals proliferating on websites such as airbnb.com and Vacation Rentals by Owner, or VRBO, were the hot topic at a breakfast hosted by the North Fork Chamber of Commerce on Friday.
Southold Town Supervisor Scott Russell was the guest speaker at the breakfast, which was held at the Six Three One Diner in Southold; he kicked off the discussion by mentioning the rapidly growing issue with short term rentals.
Seeking solutions, Russell said one idea that’s been bandied about was possibly crafting legislation that would allow for no less than a two-week rental.
But, Russell said, some have said that the business community benefited from having short-term renters who visit local restaurants and businesses and bolster the local economy; before any decisions are made, Russell said he’d like the business community to weigh in.
The supervisor said, though, that the issue needs to be addressed, with residents calling his office often to raise concerns about guests coming to their communities for one or three nights. “People find it unsettling. They like to know who their neighbors are.” Even in his own neighborhood, Russell said a short-term rental exists, and, while there have been no problems, there are still safety concerns with numerous cars on streets where children are playing. “These are issues we have to wrestle with,” the supervisor said. “This is a huge, growing industry. We know we have to do something.”
One group of residents, whom Russell said are not officially organized, have retained Abigail Field as legal counsel to combat the increase in short-term rentals, he said.
Short-term rentals, he said, differ from B & Bs, which must be owner occupied and go before the zoning board of appeals for approvals. Bed and breakfasts, he said, are subject to review; the impacts of a short-term rental in a residential community, however, are not currently weighed for intensity of use.
While some of those renting their homes online, Russell said, are good neighbors, others abuse the situation, sleeping 10 in a two-bedroom and allowing multiple cars, with no owner ever present on-site.
Hotel and B &B owners also have to pay an occupancy tax, said various business owners at the event. Residents renting their homes on a short-term basis are often paid in cash and have to pay no occupancy tax. The Suffolk County tax is meant to be used to advertise the county’s hospitality industry, some business owners said, but those privately renting out their homes are paying no tax and “piggy backing off those” who are paying.
Katie Sepenoski, of Heron Suites, said the year-round business struggled to get back on its feet after Sandy and also, is sometimes not seen, despite being on the Main Road. Occupancy tax is not the only expense, she said; commercial property taxes must also be paid and rooms are not always full in the lean months.
Both Russell and Suffolk County Legislator Al Krupski, who attended the meeting, said they felt the occupancy tax was an unfair burden on East End business owners, with the benefits of the tax “heavily weighted” to businesses to the west. Krupski said the North Fork was not getting a fair percentage of the proceeds.
Andy Binkowski, manager at the Cross Sound Ferry asked about enforcement, and asked if the town board were considering any means of enforcement, once legislation and boundaries are crafted.
Currently, Russell said, “The enforcement issue is spotty at best.” But he added that down the line, one possibility being explored would be to hire a director of code enforcement to work with the building department and town attorney’s office.
Russell said another school of thought has centered on siting short term rentals in resort residential zones; if the properties are not located in that zone, they would not be allowed.
Chris Dowling, owner of One Love Beach in Greeport — he also sits on the Greenport planning board — said some short-term rentals could be considered commercial properties.
Greenport Village Trustee Julia Robins, who also attended the breakfast, said another issue posed by short-term rentals is that some are buying homes solely to utilize for that purpose, depleting an already sparse year-round housing stock in the village.
Some at the meeting said they have used short-term rentals in other communities and states and found that there were rules to be followed and renters carefully vetted.
Russell said the community needed to get together on the issue and present their suggestions to the board. With other towns such as Southampton and East Hampton also struggling with the issue, Russell said a “template” needed to be created on how to move forward. “We need a single voice,” he said.
Tom Scalia, president of the North Fork Chamber of Commerce, said he’d gather input from all the business owners and present the findings to the town board.
