CHINCOTEAGUE, VA - The well-worn debate around short-term rentals in Delmarva’s beach towns has made its way to the island of Chincoteague.
On Tuesday night, the Planning Commission voted to recommend removing short-term rentals by right from all R-1 districts. This includes communities such as Oyster Bay, Richardson’s Landing, and Smuggler’s Cove.
Town officials said that 800 of the 3,500 residences on the island are short-term rental properties.
“If you start to get more short-term rentals than traditional neighborhoods, then you lose that quaintness,” Town Manager Mike Tolbert said. “You lose that small town charm, which is really a big reason why folks visit here to start with, so we want to preserve that."
Existing short-term rentals would be grandfathered in. Properties would retain their short-term rental usage upon sale, but the next owners would have to obtain a new business license to operate.
Anita Merritt of Harbour Rentals told WBOC on Wednesday, “Never once in the 40 years have I ever had anyone say, Anita, would you take me to a neighborhood that doesn't allow rentals?"
Merritt estimated that nearly 80% of buyers ask about a property's rental potential when purchasing.
“This would really affect us,” she said. “When I looked at a list of those neighborhoods, I had 18 to 20 of 100 homes … that's a big chunk for a small business."
Tolbert said that while Chincoteague does not face the same disruption and congestion as some other vacation destinations, like Virginia Beach, it wants to address it before it becomes an issue.
"If you are proactive in government, you get accused of solving problems that aren't there, and if you're reactive in government, you get accused of being too slow to solve the problem,” Tolbert said.
A joint public hearing before the planning commission, mayor and town council must be held before a vote on the recommendation. Officials said a hearing will be held in April.