Original memo from the City Manager
The City Manager’s office released a report on the enforcement of short-term rentals in Norfolk last week. The information gave us a glimpse into the quickly evolving economy of short-term rentals in Norfolk.
About 240 short-term rentals (STRs) are operating in Norfolk, primarily listed on Airbnb and VRBO. However, short-term rentals in Norfolk have been around since before the formal rules were in place. Regulations have since been issued and have seen a few updates.
According to the report, the new rules are not quite making their way to the STR operators. Of the 240 available STRs, only about 101 are registered appropriately with the city, less than half.
There are 84 STRs that the city has identified as operating without any form of registration. The city is not taking those 84 lightly. They’ve already initiated enforcement action on 70 and plan to start enforcement on the remaining 14. The message to those operating without the appropriate permits is clear: enforcement is coming your way.
Virginia Beach recently banned STRs in most parts of the city. As much as the Beach may try to eliminate them, these rentals won’t be going anywhere anytime soon. It’s more than just an intelligent way to find a place to vacation. It’s a long-term change to the vacation rental market that will be here to stay.
Kudos to Norfolk for leading the way on this issue. Instead of banning these rentals outright and attempting to ignore the unique situation, they’re taking on the complex task of finding regulations that work for the city and its residents. They’ve already adapted the rules since first adopting them, responding to what was working and what wasn’t. They’ve shown a willingness to be nimble in response to feedback from the community and STR owners.
It may still be too soon to determine what, if any, impact these rentals are having on the broader real estate market. Just 240 rentals are a tiny percentage of the properties available in the city, but that number is still growing.
Unsurprisingly, STRs are located disproportionately in the Ocean View area. Tourist interest in the OV beaches has been growing substantially over the past few years. Suppose OV continues to embrace this new rental category. In that case, the neighborhood will offer a distinctly different product to visitors of Virginia Beach, where high-rise hotels and tourist-trap shops will contrast starkly to the homely feel of staying in an Ocean View short-term rental.
Keep watching this trend; it’s unfolding quickly.
Paul Stetson Rice
Chelsea, NFK
Paul is the creator of NFKVA.com. He was born and raised in Norfolk, graduated from Virginia Tech, and narrowly avoided law school. Chat with him about economics, entrepreneurship, hip-hop, and hiking. When he's not working on five different projects, you'll catch him sharing a beer with friends at a local brewery. Go Hokies!
