A map of short-term home rentals currently active in Richmond shows the clustering in some areas that the revised rules are meant to prevent. (City documents)
Reworked rules meant to permit short-term home rentals in Richmond while preserving the city’s available housing stock are heading to City Council for potential adoption Monday.
In the works since last year, and anticipated since the city adopted its current rules in mid-2020, the revised regulations include amendments aimed at preventing a clustering of short-term rentals (STRs) and putting the burden of proving the rules’ primary residency requirement on STR operators instead of city staff.
The residency requirement, in which operators could rent out only their own residence or a room within it, has been a point of contention for those who want to rent out more than one property. In drafting the rules in place now, officials said the requirement is needed to prevent the possibility of operators buying up multiple properties in residential districts and essentially using them as mini-hotels.
In a presentation to the Planning Commission earlier this month, Planning and Development Review Director Kevin Vonck said that of over 1,000 STRs known to be currently active in Richmond, 895, or 83 percent, are for an entire home, and that those rentals are not evenly distributed throughout the community.
Kevin Vonck
“You can see clustering north and south of Broad Street from (Interstate) 195 all the way through Chimborazo; you can see pockets developing north of Manchester and in Highland Park,” Vonck said. “The clustering is a concern that is one of the reasons we are looking at particular regulations.”
Where primary residents rent out their own homes as what Vonck described as an accessory STR, he said a principal STR, such as a vacation rental, typically involves a nonresident owner using a second property as an STR. When a principal STR isn’t being rented, Vonck said, that unit isn’t being used, taking it away from the housing stock available in a city that officials have declared as being in a housing crisis.
“That is why there is a distinct difference between accessory short-term rentals and principal short-term rentals, because the principal short-term rentals do reduce the supply of our housing units,” Vonck told the commission.
Vonck said the proposed revisions are meant to allow STRs as a lodging option for travelers and visitors to the city, while also maintaining the character of the neighborhoods that attract them and have resulted from long-term residents living there.
“It’s difficult to have a harmonious residential community when you have a high percentage of transients,” he said. “When you look at building a residential community, people who are committing to live there for an extended period of time, it’s difficult to build a community where there are people changing all the time.”
Vonck said the STRs known to be active in the city have maintained a 65 percent occupancy rate with an average cost of $166 per night.
In developing the amendments, city planners initially recommended eliminating the primary residency requirement, in which operators must reside at the property being rented for at least half the year. Planners now are proposing to retain the requirement in all residential zoning districts, while allowing principal STRs in nonresidential districts.
Other proposed changes include doubling the fee for biennial STR permits, from $300 currently to $600. Renters would be allowed to be STR operators if the unit is their primary residence, whereas currently only property owners can operate STRs.
And for multifamily properties such as apartment buildings and condos, a maximum of one-third of the units or 10, whichever is lesser, would be permissible as STRs, whereas such properties are currently not specifically regulated.
If more than 10 units are desired, Vonck said the city should look at permitting them as tourist homes, an apartment complex or hotel. Tourist homes are defined in the city code as units that are rented out on a daily basis.
Other existing rules would remain unchanged. STRs would still be permitted as entire dwellings or units and as individual rooms, with a maximum of five sleeping rooms and no limit on the number of rental nights a year.
No more than one booking transaction during the same period is permitted, and operators must be 18 years of age or older and must submit floor plans showing locations of smoke detectors, fire extinguishers and carbon monoxide detectors.
More than 700 people attended a series of initial meetings in August on three zoning changes including the STR amendments. (BizSense file photo)
The Planning Commission endorsed the proposal unanimously after a public hearing in which several speakers expressed support for retaining the primary residency requirement, including representatives of the Fan District Association, Ginter Park Residents Association and Bellevue Civic Association.
Thomas Courtney, a former STR operator who has followed and scrutinized the city’s regulations for years, was among speakers in the hearing who opposed the proposal. Courtney argued that the existence of 1,000-plus STRs is evidence that the city cannot enforce the rules, among other arguments.
Contending that only 50 to 60 STRs have been permitted by the city since the rules were adopted, Courtney said of the policy: “It is not being improved with the new ordinance, and it is not helping any of those 1,000 people to come into compliance and to ensure the lodging tax is remitted correctly and within legal means.”
Arguing instead for a registry approach until enforcement can be achieved, Courtney added, “Everything that’s proposed is just words on paper. There’s nothing in terms of enforcing, preventing problematic operators or hotel operations. I have heard zero success stories from the zoning department on stopping problematic operators or hotel operations. They do exist.”
Fan District Association President Rebecca Keller said a poll of its membership showed 90 percent in support of maintaining the primary residency requirement, “because eliminating it would reduce housing availability in the city,” she said in the hearing.
“The Fan, Jackson Ward, Church Hill and many other neighborhoods help to make Richmond unique and a desirable place to live,” Keller said. “Allowing investors to buy up our properties for personal gain without living here erodes the character that makes these neighborhoods what they are.”
Tim Pfohl, president of the Bellevue Civic Association, said a similar poll for that neighborhood showed 85 percent in support of the requirement. While he acknowledged that Bellevue is largely built out, Pfohl said it saw seven homes that recently sold over $100,000 above asking price.
“That’s more than 20 percent over asking price, and almost every one of those had a contract in the first weekend,” Pfohl said. “That continues to be the case. That’s how intensely competitive it is for people that want to move into Bellevue and be part of our city neighborhood, fill jobs in the region and enroll their children in the Richmond Public Schools.
“We see the principal residency requirement as the best safeguard against hundreds and potentially thousands of housing units no longer being available to renters and homeowners in our residential neighborhoods, and we see the (special-use permit) process as a viable recourse for those STR operators wishing to operate in residential zones that are not their principal residence,” he said.
The proposed rules were amended at City Council’s latest meeting and continued to its meeting this Monday, Sept. 25. Council will hold its own public hearing before a vote.
A map of short-term home rentals currently active in Richmond shows the clustering in some areas that the revised rules are meant to prevent. (City documents)
Reworked rules meant to permit short-term home rentals in Richmond while preserving the city’s available housing stock are heading to City Council for potential adoption Monday.
In the works since last year, and anticipated since the city adopted its current rules in mid-2020, the revised regulations include amendments aimed at preventing a clustering of short-term rentals (STRs) and putting the burden of proving the rules’ primary residency requirement on STR operators instead of city staff.
The residency requirement, in which operators could rent out only their own residence or a room within it, has been a point of contention for those who want to rent out more than one property. In drafting the rules in place now, officials said the requirement is needed to prevent the possibility of operators buying up multiple properties in residential districts and essentially using them as mini-hotels.
In a presentation to the Planning Commission earlier this month, Planning and Development Review Director Kevin Vonck said that of over 1,000 STRs known to be currently active in Richmond, 895, or 83 percent, are for an entire home, and that those rentals are not evenly distributed throughout the community.
Kevin Vonck
“You can see clustering north and south of Broad Street from (Interstate) 195 all the way through Chimborazo; you can see pockets developing north of Manchester and in Highland Park,” Vonck said. “The clustering is a concern that is one of the reasons we are looking at particular regulations.”
Where primary residents rent out their own homes as what Vonck described as an accessory STR, he said a principal STR, such as a vacation rental, typically involves a nonresident owner using a second property as an STR. When a principal STR isn’t being rented, Vonck said, that unit isn’t being used, taking it away from the housing stock available in a city that officials have declared as being in a housing crisis.
“That is why there is a distinct difference between accessory short-term rentals and principal short-term rentals, because the principal short-term rentals do reduce the supply of our housing units,” Vonck told the commission.
Vonck said the proposed revisions are meant to allow STRs as a lodging option for travelers and visitors to the city, while also maintaining the character of the neighborhoods that attract them and have resulted from long-term residents living there.
“It’s difficult to have a harmonious residential community when you have a high percentage of transients,” he said. “When you look at building a residential community, people who are committing to live there for an extended period of time, it’s difficult to build a community where there are people changing all the time.”
Vonck said the STRs known to be active in the city have maintained a 65 percent occupancy rate with an average cost of $166 per night.
In developing the amendments, city planners initially recommended eliminating the primary residency requirement, in which operators must reside at the property being rented for at least half the year. Planners now are proposing to retain the requirement in all residential zoning districts, while allowing principal STRs in nonresidential districts.
Other proposed changes include doubling the fee for biennial STR permits, from $300 currently to $600. Renters would be allowed to be STR operators if the unit is their primary residence, whereas currently only property owners can operate STRs.
And for multifamily properties such as apartment buildings and condos, a maximum of one-third of the units or 10, whichever is lesser, would be permissible as STRs, whereas such properties are currently not specifically regulated.
If more than 10 units are desired, Vonck said the city should look at permitting them as tourist homes, an apartment complex or hotel. Tourist homes are defined in the city code as units that are rented out on a daily basis.
Other existing rules would remain unchanged. STRs would still be permitted as entire dwellings or units and as individual rooms, with a maximum of five sleeping rooms and no limit on the number of rental nights a year.
No more than one booking transaction during the same period is permitted, and operators must be 18 years of age or older and must submit floor plans showing locations of smoke detectors, fire extinguishers and carbon monoxide detectors.
More than 700 people attended a series of initial meetings in August on three zoning changes including the STR amendments. (BizSense file photo)
The Planning Commission endorsed the proposal unanimously after a public hearing in which several speakers expressed support for retaining the primary residency requirement, including representatives of the Fan District Association, Ginter Park Residents Association and Bellevue Civic Association.
Thomas Courtney, a former STR operator who has followed and scrutinized the city’s regulations for years, was among speakers in the hearing who opposed the proposal. Courtney argued that the existence of 1,000-plus STRs is evidence that the city cannot enforce the rules, among other arguments.
Contending that only 50 to 60 STRs have been permitted by the city since the rules were adopted, Courtney said of the policy: “It is not being improved with the new ordinance, and it is not helping any of those 1,000 people to come into compliance and to ensure the lodging tax is remitted correctly and within legal means.”
Arguing instead for a registry approach until enforcement can be achieved, Courtney added, “Everything that’s proposed is just words on paper. There’s nothing in terms of enforcing, preventing problematic operators or hotel operations. I have heard zero success stories from the zoning department on stopping problematic operators or hotel operations. They do exist.”
Fan District Association President Rebecca Keller said a poll of its membership showed 90 percent in support of maintaining the primary residency requirement, “because eliminating it would reduce housing availability in the city,” she said in the hearing.
“The Fan, Jackson Ward, Church Hill and many other neighborhoods help to make Richmond unique and a desirable place to live,” Keller said. “Allowing investors to buy up our properties for personal gain without living here erodes the character that makes these neighborhoods what they are.”
Tim Pfohl, president of the Bellevue Civic Association, said a similar poll for that neighborhood showed 85 percent in support of the requirement. While he acknowledged that Bellevue is largely built out, Pfohl said it saw seven homes that recently sold over $100,000 above asking price.
“That’s more than 20 percent over asking price, and almost every one of those had a contract in the first weekend,” Pfohl said. “That continues to be the case. That’s how intensely competitive it is for people that want to move into Bellevue and be part of our city neighborhood, fill jobs in the region and enroll their children in the Richmond Public Schools.
“We see the principal residency requirement as the best safeguard against hundreds and potentially thousands of housing units no longer being available to renters and homeowners in our residential neighborhoods, and we see the (special-use permit) process as a viable recourse for those STR operators wishing to operate in residential zones that are not their principal residence,” he said.
The proposed rules were amended at City Council’s latest meeting and continued to its meeting this Monday, Sept. 25. Council will hold its own public hearing before a vote.
I have zero confidence in the city’s ability to manage this, and an ever more complex and costly system of regulations is the wrong answer. Honestly, I wish the city would just butt out. Apart from collecting lodging tax and enforcing building codes, I don’t see why this is their business. If STR users are violating sound ordinances or other rules, then fine them, just like any other user. I have lived next to STRs, apartments and homeowners, and I have found each to be equally delightful and irritating at times. I also have found that visitors help me gain… Read more »
STR’s are a net drain on the city, forcing locals out. We need enforcement with teeth paid for by taxes on the industry
Some people hate the middle class…
Are they a drain? They’re taxed the same as everyone else, but visitors don’t need schools. They don’t need the police more than anybody else. They eat out more and are more likely to support local merchants. They are families coming in town to watch their children graduate. Or a couple getting away for the weekend. Or a group of college friends reuniting. And in many cases, they are using space when residents would otherwise have their homes vacant. That’s a greener solution than building more hotels, and it doesn’t add more density or make parking any worse. There are… Read more »
I can assure you STRs contribute to our local housing issue. There are several STRs within a block of me and while that may seem minor, it adds up when you realize how many there are across the city. I’ve had a few poor Airbnb rental experiences to know many STRs aren’t what they once were when true homeowners rented their home (now they’re mostly unregulated businesses). Visitors should know they’ll have guaranteed lodging with clean and safe conditions, which Airbnb hasn’t done a good job with policing. I used to love staying in an STR, but now I want… Read more »
Those who have purchased properties in the City for the sole use of Air BNB rentals have had it really good for a few years. It’s time for a change and perhaps the change reduce the rent that some people have to endure. Another concern in other markets is the purchasing properties and just letting it sit, unrented, not cared for, and waiting for the appreciation of value. Enforcement is another issue for another day.
Exactly. We have been seeing this in the Fan area around the VCU area for many years now. This is the wild Wild West of renting. No rules; no one cares. People just rent the property here and there; not a care who rents the property. The owners do not live around the property they rent; they just want the money. Very little vetting or research done on these people. Think about that. Usually, Not the type of people who you would want around your daughter or son while they attend University. The city needs to get rid of STR’s… Read more »
“Those” people are BlackStone (and similar) who are pushing up the pricing of homes without adding any sense of community. I’m all for individual home owners renting out their homes as they see fit and I’m not sure I feel the need for ABnB to be owner occupied. But I do NOT like large REITS purchasing single family homes for the exclusive use of AirBnB. These large companies outbid (pay cash) the individual homeowner that wants to build a community by living IN the community. But John Lindner has a point – neighbors can be a great or awful but… Read more »
The City already has regulations and has enforced them, regarding “just letting it sit, unrented, not cared for…day.” All a resident must do it report it to the City.
If the main concern is “clustering,” why not impose a rule that permits, say, no more than two STR’s within a quarter mile radius. Where more than two STRs are sought, the City could annually grant two licenses via lottery.
fear of clustering is quite reasonable. 1/4 mile radius is nuts
Does the state law allow localities to limit clustering or does it only allow limits per zoning type. Virginia is Dillon Rule and if it isn’t written into the enabling code for regulations STRs then the City can’t add it in.
People need to learn to do math. Buying places in expensive neighborhoods to run as a short term rental just doesn’t pencil at these numbers
You’d be surprised how lucrative STRs are now due to the prices hotels have charged since 2022. Hotel rooms in the downtown area regularly go for $250-400/night on weekends and if a house holds more than 2 hotel rooms worth of guests it doesn’t take too many weekend rentals to make a profit at the rates the charge. Never mind weekday rentals on top of it.
Like Amazon, STR’s will eventually break something and cause a crisis. Bring on the down votes and I do hope I am wrong.
Would significantly higher fees for STR homeowners and significant fines against the STR homeowners and Homestay brokerage services (e.g., VRBO, AirBnB, etc.) help the City to enforce its regulations effectively? Say, an average registration fee of $2,400+ per dwelling unit and fines of $5,000+ per violation such as failure to register, pay room taxes, STR tenant noise violations as well inspections to ensure ADA and fire/health/safety codes are met. Director Kevin Vonck cites 1,000 STRs known to be currently active in Richmond (or, to be more precise, 895 divided by 83% = 1,078 dwelling units), so 1,078 DU times $2,400… Read more »
The hotel owners are heavily lobbying city council and the mayors office. STR’s are at times used by locals who are displaced and cannot move into their apartments until the first of the month. They are providing housing to many locals and tourists who contribute to the local economy and are not straining the local community. This policy is basically a wealth transfer from middle class households back into the hotel owners pockets. This policy will not lower rent rates or lower housing prices.
nothing in the new regs would stop a property owner from offering a STR in their primary residence or accessory unit, with a special use permit if it’s not their principal residence, or in a zone other than R. Hotels may indeed be lobbying, as is Airbnb, but the overwhelming majority of the public input at the City’s small group sessions and Planning Commission has come from neighborhood residents (including STR operators).
Marcus. STRs do adversely impact the affordability of local housing for individuals and families. If you have studies to the contrary, please provide a link.