Why Should Delaware Care?
Short term rentals have been a topic of discussion across the state as the population increases and the housing supply tightens. Kent County’s decision represents a shift away from other Delaware counties’ previous attempts to impose more regulation on the short-term rental market.
The Kent County Levy Court recently loosened regulations on short-term rentals in the county, a move in contrast to both statewide trends and recommendations from its own planning commission.
The Kent County governing body’s unanimous July 29 decision removed a previous rule requiring short-term rental owners of properties smaller than 5 acres to live at the property they rent out.
The policy changed rebuffed county planning commissioners’ unanimous vote earlier in the month to deny the occupancy rule change. The change also marks Kent County moving away from New Castle and Sussex counties, both of which have made efforts to tighten regulations on short-term rentals over the past year.
Levy Court Commissioner Robert Scott, who brought the proposed ordinance change to the court, said he views the new ordinance primarily as a benefit to doctors, traveling nurses and members of the military, who might be looking to move to Kent County for a job.
“With the public safety sector that is so short-staffed right now, I just think that the short-term rental plays a good part, as far as attracting and retaining employees for the future,” Scott said.
More broadly, the rule change signals a different approach to rental regulations than in New Castle and Sussex counties. While neither county has an owner-occupancy requirement, both have considered adding a tax in the range of 3% to 8% on short term rentals. The state also imposes a 4.5% tax on all short-term rental units.
Scott’s change brings the rules for short-term rentals, defined as rentals less than 30 days, in line with long-term rentals in Kent County. He described the previous 5-acre occupancy rule as “arbitrary.”
Planning Commission skeptical
The Kent County Planning Commission expressed a number of concerns with the proposed occupancy change at their July 10 meeting, ultimately leading them to unanimously decide not to recommend the policy’s approval.
Planning Commissioner Denise Kaercher was vocal about her hesitations at the meeting, describing the potential for pushback from residents who live next to short-term rentals, which could cause more problems for the county to handle, she said.
“Although it is fixing some of the problems we have in Kent County with regards to places that can be utilized for temporary housing, it’s also creating new ones,” Kaercher said in her motion to deny the ordinance.
Others, including Vice Chair Paul Davis and Commissioner Glenn Gauvry, agreed with Kaercher, stating that the ordinance raised more questions than it provided answers.
Despite these concerns, no members of the public spoke out against the rule change to either the Planning Commission or the Levy Court.
“It doesn’t have any effects on the people that are surrounding it,” Scott said about the neighbors of short-term rentals. “Either I’m going to come in there and stay for two years and you can’t stand me, or I’m going to come in there and stay for two weeks and you can’t stand me.”
Members of the Kent County Planning Commission did not return Spotlight Delaware’s multiple requests for comment on the ordinance.
Kent County Planning Director Sarah Keifer said the relationship between the Planning Commission and Levy Court is somewhat unique in that all ordinances go to the Levy Court for a final decision, regardless of the Planning Commission’s recommendation.
But the outcome of the short-term rental vote was unusual, Keifer said, because of the unanimous denial vote from the planning commission followed by the unanimous vote for approval from the Levy Court.
In cases where the Planning Commission recommends denying an ordinance, the Levy Court requires a super majority vote – five of seven commissioners – instead of the standard four of seven majority to pass an ordinance.
Employment in Kent County
Bayhealth CEO Terry Murphy and Chief Medical Officer Dr. Gary Siegelman presented at the same Levy Court meeting about the health care system’s efforts to attract new doctors and nurses to Kent County.
Levy Court President Joanne Masten made a direct link between the hospital’s process of hiring more staff and the need to change the county’s short-term, owner-occupancy rules.
“I’ll speak for Kent County – there’s a shortage of doctors, there’s a shortage of nurses, and there’s a lot of doctors moving here,” Masten told Spotlight Delaware. “This is going to allow people to be able to rent their properties to the nurses.”
Both Levy Court Commissioner Scott and Bayhealth spokesperson Victoria Luttrell clarified that the hospital did not have any direct contact with the Levy Court about the short-term rental ordinance.
Bayhealth did not respond to Spotlight Delaware’s request for comment about whether its nurses and doctors have had trouble finding short-term housing accommodations in Kent County.
Scott added that the change could also be helpful for other people relocating to Kent County for a job if there is a delay with their permanent accommodations and they need a place to stay for a couple of weeks.
Despite their conflicting opinions, Scott described it as a positive that the two county bodies are able to disagree with one another and bring different perspectives to ordinances.
“That’s what the two boards are designed to do,” he said.
Maggie Reynolds is a Report for America corps member and Spotlight Delaware reporter who covers rural communities in Delaware. Your donation to match our Report for America grant helps keep her writing stories like this one; please consider making a tax-deductible gift of any amount today by visiting https://spotlightdelaware.org/support/.
