Short-term rentals have been growing in popularity across the country, and Chapel Hill and Orange County are no exception.

Vacation rental websites likes Airbnb allow for visitors to stay in a local home instead of a hotel during a visit. But it is also posing a challenge for local governments of how much to regulate these short-term rentals in order to prevent potential disturbance of neighbors.

Chair of the Orange County Commissioners Penny Rich said during a recent interview that the county was looking at potential options, but she added the rentals are more prominent in the municipalities.

“Chapel Hill’s really got to be the lead in this,” Rich said. “Because Carrboro and Hillsborough, they’re doing what they can, but they’re much, much smaller.”

A letter on behalf of the Orange County hospitality industry and the Chapel Hill – Carrboro Chamber of Commerce to the county commissioners earlier this year warned the board that the short-term rental industry “is a threat to the local rental market and to traditional hotels.”

Local governments across the state have varied regulations in regards to these short-term rentals to this point. Chapel Hill’s Economic Sustainability committee heard a presentation from town staff at a meeting earlier this month.

“We are just starting this path of looking at what would be best for our community,” Mayor Pam Hemminger said before that meeting. “Some of the main concerns are safety.”

Hemminger added the town was looking at other municipalities for guidance, including regulations finalized last month in Raleigh. The mayor also said there are existing town ordinances that would prevent short-term rentals in certain areas.

More than 300 short-term rentals listed locally generated more than $5 million in revenue in 2018, according to materials for Wednesday’s Town Council meeting.

Rich added that short-term rentals could impact affordable housing.

“If someone’s going to come in and buy homes that are just moderate homes – which we can use for middle-and-lower-income folks – and now they’re fixing them up, and they’re renting them three to four months out of the year, it’s a challenge,” Rich said. “And we don’t have that kind of housing here to give up.”

The recommended approach from Chapel Hill town staff said an ordinance update could be voted on in the next six to 12 months before enforcement begins in the next 15-18 months.

Wednesday’s Town Council meeting is scheduled for 7 p.m. in Town Hall.

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