Gig Harbor Addresses Questions About Short-Term Rental Rules

GIG HARBOR, WA — The City of Gig Harbor is working to address the public's questions and concerns on a recent piece of emergency legislation which put a temporary ban on new short-term rentals (like Airbnbs, VRBO or other rentals that last less than a month).

The issue cropped up in late September, when the Gig Harbor City Council passed two emergency ordinances on housing. The first, Ordinance 1466, changed zoning regulation to allow for emergency shelters, emergency housing, and permanent supportive housing within city limits (at least for a six-month period) in order to meet a state-imposed regulation designed to address the housing and homelessness crisis.

Because the state mandated the change, Gig Harbor leaders had less leeway to craft the regulation than they might normally have had. That's not necessarily the case with the second ordinance, Ordinance 1467, which put a six-month hold on new short-term rentals.

Mayor Kit Kuhn told KING 5 the hold was a response to complaints about disruptive, noisy renters, and concerns that Airbnbs were cutting into home availability, driving home prices even higher.

“There were very few listings for Gig Harbor homes,” Kuhn said. “I saw homes that were going for $100,000 more than the asking price. So there was very little market, and it will affect people finding locations to move to.”

However, the move has still been met with some scrutiny, and the city says it has received "a lot of questions" about the change, which it is hoping to address. On top of a public hearing on the issue Monday night, the city has also posted a few Q&As to answer any questions residents might have.

The full Q&A can be found on Gig Harbor's Facebook page, but here are a few highlights:

• What happens once the six-month hold ends? "No decision has been made," writes the city. City staff have reportedly recommended that the Planning Commission review the ordinance and see how other cities are handling short-term rentals before preparing a formal recommendation for the city in February. Until then, the future of the hold is up in the air.
• What counts as a short-term rental? A short-term rental is a rental for 30-days or less. It does not include hotels, motels or bed and breakfasts.
• Just one short-term rental has properly filed with the city. Though short-term rentals are supposed to receive a business license through the City of Gig Harbor before opening for business, only one has actually completed the licensing process. Five more are in the process of being properly permitted, but the city says it found at least 44 listings on Airbnb, VRBO, Vacasa and Expedia, "many of which are operating without proper approvals," the city said.

>> Learn more about the two housing ordinances from the City of Gig Harbor.