Copy of Editorial - 1
Like many of you, I have watched the slow erosion of my quality of life on the IOP over the past several decades. A huge increase in traffic, noise and beach trash, plus the inability to get into local restaurants without a long wait or reservation, reduced public safety, particularly in the residential areas. These are just a few of the major changes witnessed. Regrettably, the negative pace of change has increased of late. Certainly, the growth in the area is a big contributor, but the rise in short-term rentals is also an alarming factor. Therefore, I am a supporter of establishing a reasonable limit on STR licenses allowed by the city going forward.
I bought my first rental property on Palm Boulevard in 2004. The Realtor who sold me my home took the proceeds and built 3400 Palm Boulevard, an 11-bedroom, 11.5-bath rental that was marketed as “the wedding house.” It was common to see eight to 10 cars and as many trash cans and recycle cans out front, plus an occasional bus that carted in guests. Still today, we often see that many cars and trash cans out front. More large rentals like 3400 Palm were built thereafter, and the term “mini hotel” was used to describe them. The resources these large rentals consume – power, water, sewer – the excess trash they create and the impact on traffic is significant. The city and residents became alarmed, and the City Council created an ordinance to restrict the number of guests in rentals based on bedrooms.
The issue was that no one saw this trend coming, and the city was forced to react. The same cannot be said about the growth in STRs. We have been aware of this trend for some time but have not acted. In the last 20 years, the number of STRs has approximately doubled, while residential dwellings have decreased by 14%. More alarming is the fact that with home prices and interest rates as high as they are right now, young families are largely priced out of the market. That leaves mostly high-wealth individuals or institutional investors as the likely buyers for the foreseeable future. That could drive out more residents and increase the growth of rental properties. We have already seen AvantStay make a major investment in the IOP – they recently purchased Beachside Vacation Rentals and 59 Twin Oaks Lane for rental purposes. As one of the only two Charleston area municipalities without restrictive limits set on STR licenses, institutional investors will have incentives to continue buying homes on IOP to meet their investment goals and accelerate the erosion of residential quality of life. We have always been a residential island with some rentals. Now we are close to the tipping point of becoming a rental island with some residents. Are you happy with these trends?
I encourage everyone to become educated on this topic and make up their own mind. Statistics vetted by the city can be found on PreserveIOP. org. Please check out the website and consider signing the petition that will be submitted to the City Council to establish a referendum to allow residents to vote on whether a reasonable limit of STR licenses will be instituted. Thank you.
Jim Smitherman
Isle of Palms
