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Columbia weighs short-term rental limits, but business leader says 'hurdles' unnecessary - Charleston Post Courier

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COLUMBIA — The city of Columbia will consider rules for short-term rentals, such as those listed on online like  Airbnb, with a possible ban on locations where the owners don't live on site.

About 600 rentals are offered in neighborhoods throughout the state's second-largest city, Columbia City Councilman Howard Duvall said. Some neighborhood representatives have complained of disruptions, including parties and noise, from the rentals, Duvall said.

SC cities sue Airbnb and other short-term rental companies for not paying local taxes

He and fellow council members Sam Davis and Will Brennan have drafted an ordinance for Columbia City Council to consider at its next meeting July 20. The draft will probably begin in a special committee made up of the three councilmen before being brought back to the full council for possible approval in the fall. They plan multiple opportunities for public input.

The document is the city's first attempt at having short-term rental regulations on the books. The most contentious provision as drafted is sure to be a proposed ban on homes that are operated as rentals in residential neighborhoods where the owner lives off site. 

While some regulations on the rentals could be welcome, an outright ban on those that aren't owner-occupied seems extreme and is probably a nonstarter, Columbia Chamber of Commerce CEO Carl Blackstone said. Short-term rental owners have invested in properties as a way to earn a living, pay the higher 6% property tax rate and the properties have become the preferred method of travel for people across the country, he said.

"At a time we’re trying to open back up from a pandemic, now is not the time to put up hurdles for people visiting Columbia," Blackstone said. "We need to be opening our arms and welcoming people to come and visit. We want them to stay, we want them to visit restaurants and shop downtown anyway we can."

SC's Airbnb listings grew during the pandemic, especially in 1 destination

Short-term rentals essentially operate as boutique hotels that perhaps should be in commercial areas, Duvall said. He said the rentals can affect the availability of affordable housing, with property snatched up by investors to renovate and rent nightly at attractive profit margins.

The arguments are similar to those made by some hoteliers and hospitality groups who have opposed the rise of short-term rentals in traditional tourism hot-beds like Charleston and Beaufort. Traditional concerns are over safety and parking and that the transient nature of the properties affects the character of long-standing neighborhoods. 

Rental operators point to their investment in revamping homes and that the properties are kept in pristine order on a daily basis to maintain business and positive online reviews.

Duvall said officials considered existing ordinances in about a dozen other municipalities including Asheville and Raleigh in North Carolina, and Myrtle Beach, Greenville, Charleston, Beaufort and Summerville in South Carolina.

In Charleston, short-term rentals can only be operated as part of the owner's primary residence, with a maximum of four guests. In Beaufort, standalone short-term rentals are capped at 6% of properties in particular neighborhoods, while owner-occupied rentals such as a carriage house or garage apartment don't count against the cap.

Myrtle Beach doesn't allow short-term rentals at all in residential areas. In North Carolina's capital city, short-term rentals are allowed in residential areas but can't host special events or gatherings in those areas and can't make up more than 25% of units in a multifamily building.

Ultimately Duvall feels a short-term rental ordinance could create accountability for operators and help officials address any problem properties, similar to long-term rental rules the city enacted in 2016 that require units to be permitted and a responsible party to live within 45 miles.

City of Greenville steps up short-term rental enforcement, joins Lowcountry lawsuit

Councilwoman Tameika Isaac Devine, a candidate for mayor, said the issue has commanded much of the space in council's inbox of late. Part of the issue is the city's new zoning map that includes numerous categories of residential uses.

Devine said the decision-makers need to be careful to be thoughtful and not rush into sweeping changes. A representative from Airbnb has registered as a lobbyist with the city, Duvall said.

"The consensus is there needs to be regulations, but we also need to understand this is an industry that although new is still evolving," Devine said. "We need to be business friendly."

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Columbia weighs short-term rental limits, but business leader says 'hurdles' unnecessary - Charleston Post Courier
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