Lewes continues to define short-term rentals

Rental companies seeking to differentiate their vacation rentals from services like Airbnb and Vrbo may not be getting their wish following a July 14 meeting in Lewes.

Gallo Realty and Jack Lingo Realtor have been renting vacation homes in Lewes for decades, and according to Adriane Gallagher, manager of Gallo’s Lewes Rental Department, most guests stay for about a week. Airbnb and Vrbo offer rentals for as little as one night on their platforms.

Moving forward, the city’s short-term rental ad hoc committee will follow Delaware code’s short-term rental threshold of 119 days or fewer. Officials believe the final number of days to define a short-term rental will be lower, but Commissioner Winnie Kee pointed to a successful lawsuit against the Town of Fenwick Island, where plaintiffs cited Delaware code’s 120-day threshold in their arguments.

Councilwoman Carolyn Jones, chair of the committee, agreed Lewes should err on the side of caution to avoid lawsuits. Jones said City Solicitor Glenn Mandalas should review legal options before placing an exact number of days on the definition.

Consultant Jeffrey Goodman said other municipalities have used the type of residency in their definition. A hotel or a bed and breakfast would not qualify under the legal definition of short-term rental because their property is zoned  commercial. Properties that fall under the common definition of short-term rentals manifest themselves in several different forms. Under Delaware code, seasonal rentals, an owner renting a room, and entire properties for rent fall under the short-term rental category as long as the duration is fewer than 120 days. Committee members could define each type of short-term rental and criteria that must be met in order to operate.

Homeowners’ associations across Lewes could have their own rules regarding short-term rentals, City Manager Ann Marie Townshend said. Resident Chip Davis asked if neighborhoods like Pilottown Village could create their own short-term rental threshold. Townshend said Lewes would have no ability to control that; if an HOA wants to reduce its definition down to 30 days, then it could. There also would not be a method of enforcement by Lewes, as city officials would still adhere to 120 days. Any violations of the HOA agreement are supposedly enforceable through deed restrictions, and courts can be used to validate an association’s policy.

Rebecca Sitarchuk, who owns a home in the Lewes Historic District, said she bought a home with the community in mind and does not feel short-term rentals add to the community. The historic district does not have an HOA, and Sitarchuk said residents’ desires are represented by mayor and city council. Sitarchuk would like the ordinance to eliminate short-term rentals in the historic district.

The committee’s next meeting is set for 10 a.m., Tuesday, July 26. The group plans to continue discussing how an ordinance will fit Lewes Beach properties. Officials have stressed the distinctly different areas of Lewes and the importance of catering to the needs of each location.