Short-term rentals are no vacation for government officials
Short-term summer rentals — those properties you can rent for a week, or a weekend — are putting Anderson County government in an awkward situation when it comes to enforcing existing resolutions and regulations.
The subject came up Monday night during the Anderson County Commission’s monthly meeting — in particular one summer rental listed on Vrbo, located in the Henderson Bend subdivision.
In 2018, the state legislature passed a law that effectively pulled the rug from under county and city governments when it comes to enforcing any alleged violations on the use of the property.
“In 2018 the state of Tennessee, dealing with this issue all across the state, has something known as the Short Term Rental Act,” Anderson County Mayor Terry Frank told the body.
“In many states, there was so much tourist revenue being generated [that] state legislatures went in and pre-empted all local prohibitions and regulations on short-term rentals.
“I think what the state of Tennessee did was kind of appease two sides … when they passed this law they defined short-term rentals as ‘residential,’ but they clearly stated in the law they were protecting homeowners’ associations, condominium associations, various entities like that. They were protecting their (associations’) full authority and right to regulate, if not outright prohibit, short- term rentals.”
In other words, the county’s hands are tied — for now — and the authority to regulate what a short-term rental property can do rests in the hands of homeowners’ associations, or HOAs.
Not that the county is throwing its hands up and ignoring the problems associated with short-term rentals.
“This is my guess, just seeing the explosive growth in the states like Tennessee,” Frank said. “I don’t think we’re finished seeing the legislature deal with this. I don’t think anyone anticipated the growth.
“For instance, the folks in Henderson Bend, you have people coming from out of town, they’re staying up late, they’re partying in the street. I think the legislature wanted to protect them (HOAs) and their right to prohibit that in order to stop those occurrences.
“But for government, they’re telling us you can do some things, but you’re going to be in a tighter little box for what you can do as a county or a city.
“But what we need and what I want the public to understand, with that change in the 2018 law, can’t we view that short-term rental (like) the Henderson Bend subdivision as a business operation in light of the state law change of 2018 that say they are a residential … They’ve got a residential use or they’re not a business use. They’re not a hotel, they’re not a bed and breakfast. That’s the legal opinion we’re working on,” Frank said.
Anderson County Attorney Jay Yeager is working on a report to bring to the County Commission to see what recourse the county has, if any, for problems arising from such rentals.
Yeager said the Short Term Rental Act is a “difficult law.”
“We don’t want anyone to think we’re not taking action, but the last thing we want to do is get into another lawsuit,” he said.
Yeager said there are lots of issues and he needs to research just how strong the pre-emptive section is. That’s the section that prohibits government entities from taking action.
“It does not affect the homeowner or the condominium groups,” he said. “It’s basically a restriction on government, not the homeowners association.”
Until the legislature addresses the issue, or the county attorney can find a way to maneuver within the Short Term Rental Act, it’s frustrating the residents of Henderson Bend and Commission Tracy Wandell, who represents that district.
“The residents are frustrated and growing more frustrated by the day,” Wandell said. “And they feel like, in their minds, the county isn’t offering an assistance whatsoever.”
Wandell said the county has a process — if there is a violation of zoning resolutions why can’t the county just send them a letter and let them know they are in violation?
“I don’t understand what the difficulty is … what is the difficulty of the zoning department to make a decision on an apparent violation?” he said.
Frank answered: “If it is busieness, we can go cite them.”
But she referred back to the 2018 law: “If they (legislature) defines short-term rentals as distinct residential use.”
Commissioner Jerry Creasey (District 7) noted, “The landowners’ association can take on this issue themelves, without our help. They have a responsibility to their members. The board of directors has a responsibility in this also and not just pushing it off to us and saying ‘you’re not doing your job,’ because it’s very hard to know what our job is in this particular instance.”
Frank agreed. “They have the full authority under the law to regulate them themselves under their HOA. While we work on that legal opinion, they can get started on that themselves if they wanted. They could end it tomorrow.”
Commissioner Bob Smallridge (District 8) said, “Sounds like the HOA has more authority to regulate the short-term rentals (than the County Commission). Why they haven’t gone that route?”
Frank said the homeowner of this property was sent a certified letter by the HOA pointing out the restrictions.
“The HOA has, for economic reasons, asked for the county to enforce it,” Frank said. “It would have been easy prior to the 2018 law.
“If they want an immediate solution, they have Chancery Court and they have already notified the homeowner they are in violation of the covenant’s restrictions,” she said.