Short-term renters drive some nuts
Published 8:00 pm Monday, September 7, 2015
- Vacasa is renting out properties throughout the region, including this inn in Cannon Beach
Do you know your neighbor?
Nowadays, you may never meet them, because they are a corporation.
The North Coast is so popular with tourists and out-of-towners that a new player is sweeping the hospitality mix: the corporate property manager. Companies like Homeaway, Beachcombers and Vacasa are snatching up area properties. Gearhart homeowners tell us they routinely receive blind mailings from these companies soliciting their properties for rental, with promises of big returns.
Not so long ago, homeowners bought homes on the beach for their own use, or that of their families. They would come and visit year-in and year-out, and many homes are still dedicated to the annual family retreat. As lifestyles changed and schedules got busier, many families discovered they couldn’t make it out to the beach every year. Renting the house out for the season became a good idea to help cover costs and maintain ownership.
Terry Graff, a Marion Avenue resident, grew up in Spokane, Wash. Nineteen years ago he and his family bought property in Gearhart. “We don’t live here permanently but we spend approximately five to six months a year here, we’re here almost all summer,” he told the Gearhart City Council in August. “When we bought the place we were aware that part of the fabric in Gearhart was short-term vacation rentals.
“It was low-key, kind of under the radar,” he said. “There were a few rental agencies that listed these places, but it always worked. People came back every year and there weren’t any problems. But that’s all changed now, and it’s changed at lightning speed.”
The Internet is the main reason, he said, and with it, the rise of what is known as “VRBO” — vacation rentals by owner. Graff found 77 properties in Gearhart for short-term rental, split among FlipKey, Vacasa and Edson.
“I think a lot of us feel we bought into Gearhart as a residential community,” North Cottage Avenue resident Jeannie Mark said. “It’s feeling more and more like a hotel community.”
She added a disaster scenario to the mix.
“Since we live in a tsunami zone, visitors are likely to be unprepared and perhaps even clueless in an emergency,” Mark said.
Marilyn Gilbaugh, a Seventh Street resident, said only two homes on her street are owner-occupied. “We don’t know the people,” she said. “The turnover is just crazy.”
Graff recited current Web listings in Gearhart: “From the Vacasa site: ‘two bedrooms, three baths, sleeps 10’; ‘four bedrooms, one bath, sleeps eight’; ‘1 bedroom, 1 bath, sleeps four’; ‘three bedrooms, 1 bath, sleeps 10’; ‘zero bedrooms, one bath, sleeps four.’”
Yes, zero bedrooms — a side studio is being rented out without facilities.
Graff described noisy all-night parties, cars overflowing onto the street, and blocked roadways that prevent garbage pickup.
Graff said he went to Gearhart City Manager Chad Sweet and asked what the rules were.
There are no rules, he was told.
Graff called Vacasa, listed as manager of the neighboring short-term rental. He said he was routed to a corporate office in Lorinda, Calif.
Graff then sent a letter to the property owner himself. “He said, ‘We can do whatever we want,’” Graff said.
“I’m asking you to do something,” Graff told the council. “People say ‘Why don’t you move?’” Graff said. “I can’t. If I put my house on the market, according to a Realtor, it’s worth $100,000 to $150,000 less because of the circus next door — and that’s if I can get somebody to look at it.”
“Is anybody doing anything on the council?” North Cottage Avenue resident Jenny Sabel asked. “Is anybody attacking this?”
The good news is, short-term rentals are a near-term priority for the city of Gearhart.
Mayor Dianne Widdop urged neighbors to weigh in: “Write letters,” she said. “Any problems you see, let us know and we can compile all of these things.”
City Manager Sweet provided an update to the Gearhart Planning Commission in July, and turned over data on listings, local regulations and police incidents that could apply.
A theft from a Gearhart home by a Vacasa employee — since fired — did little to improve the company’s standing. Other police reports of noise or disturbance are hard to directly attribute to the VRBO trend.
Sweet said the city requires licensing of hotels, motels and rental units, which can determine occupancy rates and require owner or manager contact information on file.
Under these rules, multiple reservations of the same property — as in the case in the “zero bedroom” rental — could be a violation of other zoning code.
City Attorney Peter Watts said properties were considered short-term if rented for less than 30 days. This would exclude six-month and one-year leases.
Sweet said the city is compiling a Google map of short-term residences. The map, posted on a wall in the City Hall building, is “bejewelled” to indicate location of the properties.
“This is a living, working map,” he said. “It lists each one of the short-term rentals known to the city of Gearhart. We will continue to update that map so you can see how they are spread throughout the community.”
City officials and administrators are reviewing the information posted on regional and national website. “Not including motels, hotels and condos, we know of 75 rentals in town,” Sweet said. “That’s 75 different homes. For perspective, that’s 10 new homes since April this year that we know about.”
Sweet said Vacasa has four new homes in the pipeline, with growth from 12 homes to 25 in Gearhart since April. And so far, there hasn’t been mention of another popular short-term rental tool, Airbnb, which could add fuel to this fire.
The stakes will be high for local homeowners, visitors and corporate speculators.
“Get rid of these short-term rentals,” Graff pleaded. “It’s driving our neighborhood nuts.”
R.J. Marx is The Daily Astorian’s south county reporter and the editor of the Seaside Signal and Cannon Beach Gazette.