Hoover council restricts short-term rentals in single-family neighborhoods

by

The Hoover City Council on Monday night voted to prohibit the rental of homes for less than 30 days in single-family residential neighborhoods unless the rental is for a special event in the city and for seven days or less in a calendar year.

The vote was 5-2 after listening to public comment from about two dozen people for more than an hour. Voting in favor of the short-term rental restrictions were council members John Lyda, Curt Posey, Khristi Driver, Casey Middlebrooks and Derrick Murphy. Voting against the restrictions were Steve McClinton and Sam Swiney.

Public comments for and against the restrictions were about evenly split.

Proponents argued that short-term rental properties create problems for neighborhoods, such as loud parties, excessive number of vehicles parking on the street, high turnover of unfamiliar people coming into neighborhoods and lower property values.

But numerous residents and property owners spoke in favor of allowing short-term rentals in neighborhoods, saying that they are in high demand and provide a much-needed alternative to hotels and that to deny them in single-family neighborhoods is a violation of people’s property rights.

The ordinance approved Monday night allows short-term rentals on property zoned for multifamily use such as apartments or condominiums unless a homeowners association does not allow them. Short-term rentals also would be allowed in commercial areas such as general business districts, community business districts, neighborhood shopping districts, preferred commercial districts and special use districts.

In areas where short-term rental properties are allowed, property owners would have to get a business license and short-term rental permit for $150. If the short-term rental were in a single-family residential district for a special event, the permit fee would be $300.

SHORT-TERM RENTAL ADVOCATES

Lea Callahan, a resident of Southlake, said she has been using a house that has been in her family for 30 years for short-term rentals the last 18 months after moving away. That allows them to stay in the home whenever they want to and rent it out for guests at other times. In 18 months, they haven’t had one complaint from neighbors, she said.

Many people who travel don’t want to stay in a hotel and prefer a home setting in a neighborhood, she said. It’s good for both the homeowner and the renter, she said.

“I implore you — please don’t take this away from us,” she told the City Council.

Daphney Massey, a real estate agent who lives off Alford Avenue, said she owns short-term rental properties at a lake and said studies have shown that short-term rental properties actually increase property values while long-term rental properties tend to decrease property values.

Proponents argued that owners of short-term rental properties take better care of houses than owners of long-term rental properties because the short-term rentals are constantly being rated by the renters on platforms that advertise the properties and need to keep them up.

Rental platforms such as Airbnb also have rules against parties and loud noises, she said. She favors the idea of having regulations and business license fees but not a ban in single-family communities.

Jordan Masaeid-Hosey, the CEO of a Hoover-based short-term rental company called Game On BnB that manages 37 properties in the metro area, said platforms such as Airbnb and Vrbo also will remove problem properties from their sites and even refuse to allow rentals to people with a history of being bad renters.

Stacy Pickett, a Chace Lake resident, said she doesn’t own any rental properties but she has stayed in short-term rentals 15 to 20 times because she loves the experience so much better than being in a hotel.

“For me, short-term rentals is about bringing families together,” Picket said. “I just think we need to be a little more open-minded.”

RESTRICTION PROPONENTS

Jana Hoffman, a resident of Blackridge, said she’s heard a lot about the rights of people who own property they want to rent, but other residents in the neighborhoods have rights, too.

“We have a right to be able to live in a neighborhood where we can live in peace and tranquility,” Hoffman said.

When she invested in a home in Blackridge, she was investing in the idea of living in a neighborhood with people who care about one another and have relationships with one another, not one where different people are coming and going all the time, she said.

Mark Davis, a Southlake resident, said he has lived there seven years and the neighborhood had no issues with break-ins, but there have been two recently and one of them was four houses down from a short-term rental property.

People who stay in short-term rental properties aren’t aware of the neighborhood rules and violate them more frequently, Davis said.

Andrew Miller said a house next to him in Green Valley is advertised for 16+ guests. He has three young children, and it’s very unsettling to have strangers coming and going all the time and making noise late at night, he said.

Tony Ballard, a member of the board of directors of the Chace Lake Homeowners Association, said his community also has had disruptive visitors staying in short-term rental properties — large groups of people with a lot of vehicles lining the streets, creating a traffic hazard.

Also, national corporate entities do buy homes at inflated prices to rent them out for short-term use, hurting the natural real estate market, Ballard said. It also hurts the hotel industry and leads to less revenue for the city if people staying in short-term rental properties are not paying lodging taxes, he said.

COUNCIL MEMBERS

McClinton said the core issue to him is property rights.

“The bedrock of our country is about property rights,” he said. “The city does not have the ability to strip away anybody’s property rights.”

Yes, there are some issues with short-term rentals, and he wouldn’t want to live next door to one, but he believes people have a right to rent out their own property if they want, he said.

He believes there is a better way to address the problems and asked his colleagues to postpone a vote and recraft the ordinance with input from people who are involved in the short-term rental industry, but his colleagues did not agree.

Murphy said he put a lot of thought into this issue just like he does every issue the council faces. They’ve been hearing complaints from resident about short-term rental properties since 2018, and it’s important to him to enact laws that help create a great family-oriented environment, he said.

Safety is one of the most important things that draws people to Hoover, and residents are asking the council to protect their neighborhoods, he said.

McClinton said the Alabama Supreme Court is considering a case in which an Auburn man is challenging short-term rental restrictions there and he wouldn’t be surprised is the Supreme Court issues a ruling that would negate the Hoover City Council’s action Monday night.

Hoover’s new restrictions against short-term rentals in single-family neighborhoods and requirements for permits and business licenses for short-term rentals in multi-family complexes and commercial areas went into effect immediately.

NEW REQUIREMENTS

Short-term rental properties in Hoover now must have smoke detectors and carbon monoxide alarms and post emergency contact information and floor plan diagrams that include fire exits and escape routes, as well as an insurance policy with a minimum of $1 million worth of liability and personal injury coverage.

An earlier draft of the ordinance included a requirement for fire suppression sprinklers, but that requirement was later removed at the request of council members.

No more than two people are allowed per bedroom, and no parking is allowed on the street.

If three valid and substantiated complaints are received by police within 12 months, the short-term rental permit will be suspended for at least six months. If a second suspension occurs within two consecutive years, the second suspension will last 12 months. If a third suspension occurs within three years, the permit will be revoked.

If a property owner fails to take recommended corrective action to remedy violations of the ordinance, the owner could be forced to appear in Hoover Municipal Court for maintaining a public nuisance and be subject to fine, imprisonment or both.