Matthews City Seeks Short-Term Rental Regulations

Looking for a short-term rental in Matthews? Well, some residents wish that wasn’t an option.

Residents have raised concerns about short-term rentals in their picturesque single-family neighborhoods, and now city officials are looking for ways to regulate the growing business.

At Monday’s Board of Commissioners meeting, Planning Director Jay Camp presented leaders with proposed regulations that included zoning permits, limits on the number of guests in a room and a ban on events.

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With the move, Matthews becomes the latest community in the state and the Charlotte region to seek to regulate short-term rentals.

Lake Norman residents spoke out, prompting the Lincoln County Board of Commissioners to investigate zoning laws. Iredell County commissioners also explored tightening regulations, but were soon faced with a lawsuit in February from property owners and managers who claimed the county’s zoning laws were illegal.

Last year, the state came close to passing legislation that would have prevented local governments from banning short-term rentals, but the bill stalled in the Senate.

How did we get here

Loud parties and noises day and night, rows of parked cars cluttering small streets and unknown neighbors constantly hanging around are the reasons why some residents are wary of short-term rental apartments.

According to press agencies, a petition was launched in February calling on the city authorities to ban such facilities in areas built up with single-family houses.

But a blanket ban is not an option, Camp said at a March board meeting. “A blanket ban on uses is not an option. You have to recognize the uses and have a place for them,” Camp said at the time.

Currently, short-term rentals are not a regulated use under the Matthews Unified Development Ordinance, according to Camp. They may exist, but there are no regulations.

There are also no strict state laws about what local governments can do about short-term rental regulations. The only known law is that municipalities cannot require short-term rental owners to register their properties, according to a 2022 North Carolina Court of Appeals ruling against the city of Wilmington.

The ruling led to the rejection of Charlotte’s regulatory filing.

However, under the same ruling, local authorities can regulate where these rents go and how they are used.

So Planning and Development began crafting what those rules could look like over the past few months. They presented those ideas to the board on Monday.

Here are some of Matthews’ suggestions:

First, the city would have to define what a short-term rental is. YouUnder the proposal, there would be three types of rentals: guesthouses, which already existed in UDO; homestay accommodation, which means part of the house is rented; and whole-house rentals.

Then it would be necessary to introduce restrictions on the location of these facilities.

Short-term rental operators would have to apply for a zoning permit, post the permit and pay taxes. Each business would have to be set back at least 800 feet from another.

They would also be permitted in most traditional residential neighborhoods, as well as in mixed-use areas in the city’s historic core and in high-density multifamily developments.

There would also be operational and use restrictions, such as no special events or gatherings, no more than two guests per bedroom, and parking rules. The operator must also live in Mecklenburg County or a nearby area.

Camp said Monday’s meeting was the beginning of a dialogue between officials and residents.

“Right now, they’re an unregulated use. Our ordinance is very quiet,” Camp said. “Our authority as a local government is very specific because it’s delegated by the General Assembly. We have to stay more or less in our lane when we’re developing zoning regulations.”

As for penalties, two or more violations will result in the revocation of the permit. These violations include noise ordinance violations, public nuisance violations, and failure to comply with zoning regulations.

Are these rental policies helpful to Matthews?

While these proposals are a first step towards addressing residents’ concerns, they will only impact new facilities.

These rules cannot be applied retroactively to short-term rentals that already exist. “No matter what we do from a regulation perspective, you can’t regulate the use of something outside of the community,” Camp said.

However, the violations will apply to existing lease agreements.

Camp says there are about 30 short-term rental listings on AirBnB and VRBO. But that’s just an estimate. Without a registration system, there’s no way to know how many there are in the area.

Camp said he got the information from short-term rental websites, but some rental companies do not use those sites.

Some of the current rentals are a nuisance, residents said at a public hearing. About 15 people spoke, with most opposing the short-term rentals. Some said if they have to exist, the regulations should be strict.

Many residents have stated that parties are held in the premises they rent nearby, blocking traffic with a large number of parked cars and changing the appearance of the area.

They also compared an apartment next to a rental property to an apartment next to a hotel.

“There were times when people would stay and it was a bit of a nuisance,” Katherine Hardister said. “Again, it’s a short-term nuisance. Then the next batch comes in and you don’t know. I can only expect that to be my life as long as I’m there. You don’t know what’s in store for you.”

Most speakers echoed that sentiment. When you move to a new place, there’s a chance you won’t like your neighbor, Hardister suggested, but the turnover of guests in short-term rentals makes it difficult for neighbors to know who’s next door.

However, some residents support short-term rentals and advocate for regulations.

Ian Goldstein said he owns a short-term rental in Matthews and understands why people are upset. But he opposes an outright ban.

Goldstein urged residents to call authorities when noise ordinances are being violated and to contact him if they have any concerns, adding that most of the people he rents to are simply looking for inexpensive, romantic getaways.

“I’m saying about 80% are couples going to the city … and the other 20% are people visiting for business or families,” Goldstein said. “I have no objection to regulating AirBnb. It should be any business … You want to see it banned, and that’s just not going to happen.”

This is just the beginning of the debate

Camp said these are just the beginning of talks. Planning officials may consider reducing the number of residential zones that allow rentals. There could also be changes to proposed parking measures.

Talks will continue on August 12 at the next planning meeting.