Gulfportian Robert Salta cited data that shows that for every 1% increase in Airbnbs, overall rents increase as well – by the same amount.
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Spurred by Two Meetings of Public Comment, Gulfport Officials Promise to Act
The ongoing issue of short-term rental properties in Gulfport dominated the discussion and public comment at the May 3 meeting of the City Council.
Motivated by the pleas of other residents as well as issues they have observed in their own neighborhoods, Council directed Gulfport city staff to gather information that could tackle the problem on two fronts: The legalities surrounding the possibility of implementing some kind of rent control, and the potential costs associated with beefing up the code enforcement department’s ability to ferret out illegal rental activity.
No fewer than a half-dozen speakers during public comment time addressed these issues.
Robert Salta noted that during previous discussions of the problem, there has been little if any mention of its economic effect on the rest of the community. He cited data showing that for every 1% increase in the number of Airbnbs in a particular city, the overall rents increase by the same amount. He also gave examples of cities such as Boston and Barcelona where rents have skyrocketed because of this.
“These are massive increases in rent we are having while already in the midst of a rental crisis,” said Salta, adding that a move to step up enforcement of illegal activity would inevitably save the City money in the long run.
Noreen Smith said that, after moving to Gulfport nine years ago and deciding to make it her retirement home, she may have to leave because it is too expensive to live here. The rent on her 600-square-foot residence has increased 50% in nine months, she said.
She listed several friends who have already moved or might have to very soon, including some who are sleeping on other people’s couches, because of this problem.
“It’s pretty sad and it’s very, very scary,” she said. “It’s truly a crisis happening here. These rent increases and short-term rentals are essentially pushing us all out of town. We are losing the people who made Gulfport, and that concerns me.”
Smith read from what she said was State legislation that allows local governments to implement rent control measures “when there is a housing crisis sufficient to create a menace to the public.” She left that documentation with the city clerk so that officials could examine it further.
10-year resident Linda Breen thanked the Council for not tinkering with Gulfport’s existing ordinance and risking the potential loss of all possible governance in this area due to recent actions at the state level, which have removed home rule. She was one of several residents who expressed their satisfaction with that, and the Council was unanimous in its opinion that whatever action is taken down the road does not in any way involve changing the ordinance.
“The illegal Airbnbs created a false market of supply and demand for rentals, and home prices that created a serious housing crisis for hundreds if not thousands of people and families in our community,” said Breen, who added that proper action could result in rent prices leveling off to a more reasonable range and might get some residents who have left to move back.
“Illegal renters have no incentive to do anything differently,” she said. “If a penalty is minimal, there is no incentive to stop illegal activity.”
Some simple math on Breen’s part suggested that if illegal renters were fined $1,000 each, it could easily fund whatever extra resources were needed for code enforcement, which is currently handled by a single city staff member.
Eddie Ford, who moved to Gulfport two years ago, said he converted from renter to homeowner for his residence and did so just in time before it became unaffordable. A software developer by profession, he offered free assistance to the City in the form of an app that he said would streamline the reporting of illegal rentals. He asked for the opportunity to meet with Gulfport officials at a later time to find out exactly what would be needed to put his plan in motion.
“I love this town and I hate to see all my friends move out because of greed,” he said.
Karen Love made it clear that she favors increased City involvement.
“Why aren’t we enforcing our residential ordinances?” Love asked. “Get another code enforcement person and get this done.”
A resident of Seaside Villas who participated in public comment by phone stated that her rent has risen more than 20% this year and she knows others who have seen theirs go up even more. She said seven of her friends have had to move out of Gulfport the past few months because of rent increases. As a paraplegic in a wheelchair, she said she is particularly concerned about how the rentals listed on Airbnb and VRBO are not required to be wheelchair-accessible.
Councilmember Michael Fridovich related a somewhat amusing exchange he had in a grocery store with an out-of-town visitor.
“You have way too many Airbnbs here,” she said. “In our town we wouldn’t allow them.”
Fridovich simply replied, “Most of them are illegal.” That shut down the conversation immediately, he said, as he knew this woman was staying in a short-term rental herself.
Illegal renters have no incentive to do anything differently,” she said. “If a penalty is minimal, there is no incentive to stop illegal activity.”
Council member April Thanos acknowledged that the owners of many of these properties think they are improving the area because they are maintaining them appropriately and bringing in tourism, which helps local businesses. She noted one such rental in her neighborhood which she said is operating legally.
“But there is still someone different in there every month,” she said. “You don’t have neighbors anymore. The people are gone.”
Councilmember Paul Ray said that when he heard the names of some of the people who have moved out of the City, it had an impact on him because he knew many of those people. He lamented the way that this situation is changing the landscape.
“What I fell in love with in Gulfport was the people,” he said. “The more of these people who move out, the more we are losing the character of Gulfport. And that’s pretty much the end of us.”
Ray also cited the difficulty of enforcement, such as the houses in his neighborhood that host late-night parties for which police are often called. Each time such a situation is resolved, a new group of tourists moves in the following week and it starts all over again, he said.
Mayor Sam Henderson asked that the city’s attorneys find out what legal options the council might have as far as addressing the rent issue as was suggested during public comment time. He also pointed out that not every renter in the city falls into the category of a villain.
“Not everyone is coming in from somewhere else and gouging renters,” he said. “Some are just trying to make extra money and doing a good job.”
Councilmember Paul Ray said that when he heard the names of some of the people who have moved out of the City, it had an impact on him because he knew many of those people
But, he added, he knows the issue is real because he has a family member of his own who will be changing residences this summer because of high rent, perhaps moving in with him or another relative.
City manager Jim O’Reilly reminded the council and the audience that there are essentially two separate issues at play. In addition to the legal advisors looking at rent options, he suggested that his office draft a budget for increased code enforcement.
“We’ve got some tools, but it’s a matter of resources,” he said. “If the council wants to do it, we can move forward and get the message out to those who are illegal.”
O’Reilly noted that in Indian Rocks Beach, where some of his friends are selling their homes and moving out, the city government made changes to its ordinance and now has no enforcement mechanisms because of recent state interference in home rule. After that comment, all of the council members reiterated their intention not to do that with the current Gulfport ordinance.
The city gets numerous phone calls every week from companies asking where short-term rentals are allowed, according to O’Reilly, and staff tells callers that it’s not permitted in about 97% of Gulfport. That leads many owners to simply sell to someone else, he said.
“The hospitality lobby is against [short-term rentals] because the hotels and restaurants want customers on campus,” said O’Reilly. “The Realtors are just looking for a product to sell. You have two of the biggest lobbyist groups in the state of Florida clashing over this topic.”
Not everyone is coming in from somewhere else and gouging renters,” he said. “Some are just trying to make extra money and doing a good job.”
No such conflict exists on the Gulfport City Council.
“There’s a lot of things we don’t agree on up here, for sure. We’ve had our go-rounds,” said Henderson. “If we didn’t have different opinions, there’d be no point in having five people on this council. But I can safely say that nobody sitting up here wants to sell this place out to people coming from the outside with big money.”
Henderson reiterated that there are real issues to address with regard to how Gulfport can regulate all of these matters properly, working within state and federal regulations and avoiding lawsuits.
“This is one place where we are all on a similar page, and we’ll explore what we can do to curb this from happening,” he said. “A lot of developers are coming in here and building homes out to the max. That puts us one storm away from this being a very different place. But the storm we are facing now isn’t a hurricane; it’s interest and money from people who don’t have a real good feel for what is going on here.”