Bingen making moves to get ahead of short-term rentals; law goes into effect in 2025
New rules for vacation rentals such as this one in Bingen will go into effect in 2025. The city has set the limit to 32 units or 10 percent of the housing stock, whichever is less.
By Ken Park
Bingen, Wash., Nov. 17, 2023 - Home-sharing platforms like Airbnb and VRBO have opened up several options for tourists looking for unique places to stay and for property owners to make extra money.
However, the popularity of short-term rentals (STRs) and vacation rentals has led to cities and counties having to create policies to mitigate the impacts of these kinds of properties on their existing and potential housing stock.
To get ahead of Bingen's growing STR/vacation rental market, the city council has passed an ordinance that will go into effect in 2025.
Bingen City Administrator Krista Loney
“The purpose of doing this now is because there is a real need for policy,” Bingen City Administrator Krista Loney said.
“A lot of cities are finding that they are overrun with STRs, and they have to establish limits because they haven’t planned accordingly, and we did not want to be in that position,” Loney said.
This ordinance will limit the number of STRs/vacation rentals allowed in the city to 32 units or 10 percent of the existing housing stock, whichever is less.
It will also require property owners to obtain a license from the city to operate as an STR/vacation rental, and the permit will be good for 10 years.
Property owners will also be required to pay a $285 annual fee.
STR/ Vacation rental property owners will have a year to comply with this ordinance, with permit applications opening in March 2024.
The Bingen City Council passed the ordinance with a 4-1 vote; the dissenting vote came from council member Izzy Schroder, who opposed an amendment of the original ordinance extending the permit terms for short-term/vacation rentals from five years to 10.
“I think it (five-year permit) shuts out anyone else should we max out with our available permits,” Schroder said.”I’m not opposed to revisiting expanding the length when the time comes, and we're looking at people on a waitlist.”
Councilmembers discussed permit length and annual fees following a public hearing where current STR/vacation rental owners voiced concerns about the initial five-year permit and the $285 fee.
Property owners took issue with the initial five-year permit for several reasons, noting that for those just beginning in the STR/vacation rental market, it can take up to three years to see a return on investment.
Council member Brittany Spratt noted that for many property owners, the revenue from guests goes into paying off the 30-year mortgages on these homes.
Councilmember Ryan O’Conner agreed.
“There is a lot of investment going into setting up these rentals. You have a first year where you’re just figuring out how everything goes, a second year where you start to figure everything out, and then by your third year, you’ll have it all worked out. I think ending the permit at five years makes for a quick turnaround,” O’Conner said.
The majority of the council favored extending the permit term to 10 years.
Property owners also expressed concerns over the annual fee, as they already pay significant property taxes.
Loney clarified that the $285 annual fee will cover the cost of the services provided by Granicus and that the City is not seeking to profit from STR/vacation rental property owners.
“100 percent of the annual fees will be sent to Granicus, which monitors STRs and vacation rentals; there is no money to be made by the city from STRs,” Loney said.
Loney has been working with a volunteer group of Bingen residents for over a year to create this new policy to make it equitable for property owners and people seeking long-term housing options in Bingen.
One of the participants in the group was Bingen resident and property owner Jeri Fisch.
“When the council started talking about this over the summer, I attended a few meetings because I knew this could impact me,” Fisch said.
Fisch owns two homes on Humbolt Street; she lives in one full-time and rents out the other when not used by friends or family.
“I think the city staff and the council were conscientious and communicative with property owners about this policy. There were some things early on in those discussions that I disagreed with and spoke to, and I think they had an impact on the final product,” Fisch said.
One of those issues was a requirement for property owners to hire inspectors to ensure that policies from the city and vacation rental/STR sites were being followed, placing an extra cost on the property owners.
The policy allows property owners to perform the inspection independently, which most major rental sites like Airbnb and VRBO require.
Before this policy could be implemented, the city needed to understand the exact number of homes operating as STRs/vacation rentals in Bingen. The city council initiated a moratorium on new STRs/vacation homes to allow for a survey to be conducted.
The survey was conducted by Granicus and found that about 20 homes in Bingen are currently operating as STRs/vacation rentals.
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