MARYLAND

Ocean City short-term rental ban proposal raises property rights objections from Realtors

The Daily Times

A new zoning area in the proposed Ocean City Comprehensive Plan has local realtors and property managers on edge.

Some fear the "R-1A" zone would limit short-term rentals in residential neighborhoods.

"Legislation to implement R-1A has been seriously discussed twice, and both times, we asked that the town focus on education and enforcement, rather than an outright ban," said Donald Bailey, president of the Coastal Association of Realtors.

The association is concerned about private property rights for owners of both single-family dwellings and condos, because of the possible decrease in value for the properties, Bailey told the Ocean City Planning and Zoning Committee on Tuesday.

These properties might no longer be viewed as an investment, he said, and there might be a lack of options for families wishing to stay in an R-1 zoned area rather than hotel rooms or condominiums in other locations.

He also fears that those who do not make Ocean City their primary residence may not know about the R-1A portion of the comprehensive plan and will not be able to make their voices heard because they are not primary residents.

"R-1A is a disservice to those property owners in particular because their homes would no longer be eligible for use as a short-term rental, therefore the value of the property may decrease and it could be more difficult for them or their heirs to sell," Bailey said.

William Neville, Ocean City's planning and zoning director, said at the planning and zoning meeting on Oct. 17 that this portion was never meant to be tied up with the comprehensive plan.

He went as far as to say he recommends removing parts of the R-1A restriction updates to the comprehensive plan.

"At this point, we don’t want to jeopardize the success of the comprehensive plan update with a big issue that probably deserves its own consideration separately from the update process," he said.

Peck Miller, who was chairing the meeting due to the absence of Pam Buckley, said he liked the modification, which he saw as beneficial for keeping the reference in the plan, while taking out the parts Miller thought could be misleading.

Neville said there are also issues regarding what qualifies as a short-term rental.

"There's a big difference if we mean something shorter than four months or if we're talking about four days," he said. "At this stage, I think we would have to go back and solve that basic understanding of what the mission of the planning commission would be at this point versus the concerns that have been raised."

What it boils down to is protecting year-round residents in the residential neighborhoods versus protecting renters, he said.

Commission member Palmer Gillis, however, was in favor of laying out the definitions with this draft of the comprehensive plan.

"If we don't do it now," he said, "when are we going to do it?"

Gillis, along with fellow commissioner Lauren Taylor, wanted the provision to be included to protect the year-round property owners.

It is the rights of those property owners who do not reside in the resort year-round that have Chris Mitchell, regional vice president for Coldwell Banker Vacations, worried.

He agreed with Bailey, the president of the Coastal Association of Realtors, that the rights of the property owners should be protected.

Property owners should be able to decide what they want to do with short-term rentals, Mitchell said.

"I think it comes down to the individual property rights, keeping in mind those homeowners don’t have a vote in municipal elections, therefore decisions are being made that they won’t have a say in," he said Wednesday morning.

The commission ultimately decided not to take action on the language on the comprehensive plan in order to get the opinion of Buckley, the missing chairwoman from the meeting.

They decided to tackle the matter at the next planning and zoning meeting on Nov. 7.

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