Letter to Editor | Vacation Rentals a Cash Cow for San Juan County

— from Karen J. Key Speck —

Dear San Juan County Councilpersons Hughes, Stephens, Watson

I am writing to express opinion on pending changes to the Vacation Rental Permits issued by San Juan County.

Recent press indicates that the county planning commission is considering renewal fees for existing legally permitted vacation rentals, inspection regulations and fees, and changes to the number of occupants and parking requirements.

As you may know, this company was the forerunner in all of San Juan County managing vacation rentals since 1968, long before the term vacation rentals was even a national description. Cherie L. Lindholm RE has always played by the rules and even had a court case against San Juan County in 1999 to develop and encourage permission for vacation rentals and subsequently worked with San Juan County as an amicus for a similar cause. We would hope our long history and experience in this field will be considered as you make your final decisions.

With my years of experience, I educate homeowners as to if their home would make a viable vacation rental versus one better suited as a long term rental. Sometimes I lose business because the homeowner with no ocean view or waterfront thinks they will make a fortune vacation renting but is instead advised their house would be more effective and efficient as a long term rental. I feel strongly that we should attempt to maintain affordable housing for our work force. But elevating permit fees, and inspection fees on vacation rentals is not the answer. I would suggest you look at a recent Canadian report examining their country’s rental prices. Many locales across their nation offer a one bedroom apartment (not a house) for $1100.00 per month whereas three bedroom rentals approach $1600 and up. Each time a San Juan County or community study contacts me; I convey the real price of affordable housing on Orcas in an attempt to assist in keeping prices reasonable and well under the prices quoted above.

Vacation Rentals put lots of money into your coffers. However, rather than “punishing” those of us who have legal vacation rentals with permits, keep proper paperwork, and pay taxes to State/County, it seems more prudent to designate a person to monitor social media and national advertising sites to track those who are renting illegally. Why not hire someone at a fare wage and offer them a “commission” for each homeowner they successfully track down? This would allow you to have less expense and more motivation for the person to locate the illegal activity. You then can implement the cease and desist orders with daily fines to that party until they come into compliance.

We would suggest San Juan County maintain the HUD occupancy guidelines of three persons per bedroom. Cherie L. Lindholm RE does not market our homes as three per bedroom, but if a home is a three bedroom house we have requested permits reflect occupancy for 8, in example. (Two per bedroom = 6 and 2 for a sleeper couch.)

This same occupancy- limiting reflects in the parking at vacation rentals. We have in our contracts directives about parking and work to not intrude upon neighbors and roadways. It would be unfortunate to require additional parking, when one can drive around long-time renters’ or homeowners’ properties island-wide noting less considerate behavior from people who live here year round versus a 2/3 nightly guest or week long visitor. The same applies to what seems an ill-conceived notion to reduce speed limits. It is often the local who drives hell-bent as he knows the roads and where the police speed traps are set up.

I was surprised to also read a requisite for trash removal. I get the impression that homeowners who do not have local management are the ones causing most of the problems, yet professional companies like mine will pay for their indiscretions. I am not against regulation or fees or permit costs in general. I am against everyone being sent into the hall due to the errors of others.

We actually lose business because we decline groups that wish to pitch tents in the yards, have a motorhome in the driveway, or bunk a bunch of children on the floor. We have always recognized the potential intrusion to a neighborhood with increased occupancy and therefore, frequently decline such inquiries and recommend to venues better suited. After warning a repeat guest of bad behavior, I declined to rent to him and his family group this year because of him not following our rules. You will also note complaints on Cherie L. Lindholm RE vacation rentals are infrequent. We try very hard to respect our island neighbors as well as the home owners and the guests. Thus, we don’t wish to feel like those of us who have always been conscientious will be the ones punished with higher fees, more frequent fees and inspections. Perhaps having local management is the better solution.

I personally have been a property manager for 32 years. I’ve seen a lot of change with regard to the evolution of vacation rentals nationwide and in San Juan County. I can tell you that every single year the term “housing crisis” comes up. The crisis falls at different times each year and lasts for varying lengths of time, until the inquiries recede and housing seems in balance again. I am not dismissive of housing needs, but it is not new. We have a small land-footprint, we can’t go around the block or to the next apartment complex to find housing, we have high prices and low wages because most businesses are seasonal and cannot afford to pay more or offer full-time year-round employment, and we are a retirement/vacation destination where some have built their dream homes and just don’t wish to rent it to someone before they, themselves live in it.

I feel the advent of vacation rentals has increased tourism and money to the San Juan Islands. Limiting the vacation rentals under the guise of regulating rentals so as to lessen the decline of long term housing in the County is self-defeating.

Isn’t it possible that the County is actually devising ways to raise even more money by saying that you’re trying to do good by the community and regulate rentals, but in reality you’re creating more income by adding another, and another, and another fee on the Gilded Cow? I think so.