By Morgan Pilz, Staff Writer

(March 12, 2020) Rules and regulations that could be put in place to govern short-term rentals were discussed by the Berlin mayor and Town Council during their Monday evening work session.

Since last November, the council and Planning Commission have been looking into ordinances created by nearby municipalities and states regarding short-term rentals, including those known as Airbnbs.

Mayor Gee Williams discussed the importance of “what regulations should be created here in Berlin regarding short-term rentals.”

By Morgan Pilz
During the Berlin mayor and Town Council meeting on Monday, some potential rules and regulations for short-term rentals were discussed. The official public hearing will be held Monday, March 23.

“The council has said a number of times … we need some feasible, responsible way of regulating this growing trend,” Williams said. “I think it’s very necessary and I think banning them or doing nothing are both irresponsible and not what we should be doing in the best interest of the town.”

The suggestions offered in the draft by Williams and members of the council included a definition of what the town would consider a short-term rental, suggesting it would be known as “all or any part of a dwelling unit providing accommodations not to exceed 28 days.”

This number was chosen as a result of studying the limits determined by other municipalities in the region.

According to Planning Director Dave Engelhart, the town would be allowed to tax the short-term rentals with a five percent lodging tax, similar to the lodging tax for hotels, for up to 120 days, in accordance to current Maryland tax codes.

The council also considered the possibility of having short-term rental licenses not only in single-family home districts, like R-1 and R-2 districts, but also multiple family districts like R-3 and R-4 as well as business districts.

The main difference between R-1 and R-2 districts are small, with less setback space in R-2 districts and a slightly bigger parcel, Engelhart said.

Williams also discussed the matter of licensing fees. The Worcester County licensing fee, he said, was around $200 but had originally been much higher. He recommended an inspection and cover cost of $150 as well as $200 for the license itself, the same as suggested by the county.

He also wants to implement a rule that would restrict short-term rental licenses to resident property owners to negate the possibility of problems with out-of-area property owners.

“The reasoning behind that is that communities that didn’t do that started a wave of purchases by non-primary resident property owners, [who] bought up homes and then converted them into rentals,” Williams said. “I don’t want people being bought out of their homes and move out of town because suddenly the home has more value as a rental property than it does as a home.

“We are, and have been, a bedroom community for the rest of this century and hopefully beyond,” he continued. “It’s not a resort … I don’t want to do anything that changes the character and nature of our town.”

Council member Troy Purnell objected to the suggestion, saying it should be the right of the property owner to be able to make that choice regardless of the home being their primary residence or not.

There were also some issues regarding how these regulations would be enforced if they were violated, though ultimately it was decided that the neighbors would be able to contact officials if any rules are violated.

Williams also wanted to make sure that all short-term rentals have their licenses displayed on the premises, with its license number available on any social media or advertisement listings.

Any licensed property that knowingly goes into violation of any rules, like hosting an event exceeding the number of spaces it can rent out, would have their license revoked for three years. The council agreed with this suggestion.

Engelhart also said the licensing review would be provided by a middleman company who would oversee the inspections and ensure the requesting properties were up to code. He estimated the company would be able to get back with a response within the week of inspection.

Town codes for accommodations like hotels and homes require bedroom sizes to be a minimum of 70 square feet, not including space inhabited by furniture. Dwelling units are also required to have two designated parking spaces, so any property renting a bedroom would be required to have additional two off street parking spaces to avoid any congestion on the roads.

Currently, Engelhart believes there would be 9-10 requests for Berlin, with only one not being able to follow the suggestion codes and regulations.

Finally, there was discussion to have the codes and regulations accessible online through the town’s webpage, so homeowners and visitors can clearly understand the rules regarding short-term rentals.

Overall, the council was willing to consider these suggestions, but wanted to hear from residents before making any decisions.

“I would like to hear some more input from the R-1 and R-2 homeowners,” Council member Thom Gulyas said. “I think they’re going to be the ones most affected.”

Council members Zach Tyndall and Dean Burrell agreed with this suggestion.

“I want to hear more from the people, [but] public hearings can be intimidating,” Tyndall said. “We should have an open format meeting before making any decisions.”

“I can see both sides,” Burrell said. “If I had a short-term rental next to me, I’d want to make sure that it’s managed properly and it does not impede my peace, quiet and wellbeing and the enjoyment of my place. But at the same time, if I’m a property owner, I’d think I have a right to utilize my property the way I see fit within limitations.”

An official public hearing for the ordinance is expected during the next mayor and Town Council meeting set for Monday, March 23, at 7 p.m.