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Middletown Looks to Reform Short-Term Rental Ordinance - Newport This Week

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The effort to address the host of problems brought about by the sharp increase of short-term rentals in Middletown, such as overcrowding, litter, traffic congestion, noise complaints and homeowners failing to properly register their properties, is gaining momentum with the Middletown Town Council.

Middletown officials recently released the results of a town-wide survey for residents regarding short-term rentals, now defined as any lasting less than six months. According to the survey, 26 percent said that they operate a short-term rental, with 71 percent answering that they resided near one. About half of respondents said that short-term rentals were a “good thing” for Middletown.

There are approximately 200 short-term rentals currently registered with Town Hall, according to records. The last amendment to the ordinance in 2019 required operators to register annually and pay a $55 fee per bedroom.

The discussion on short-term rentals was broached during the Jan. 19 meeting, which had been continued from the prior meeting. Council President Robert Sylvia and Vice-President Paul Rodrigues sent a joint memo to colleagues outlining a number of proposals aimed at strengthening enforcement and the language of the rental ordinances, saying the “historic issues” were creating “havoc in our neighborhoods.”

Rodrigues reiterated his call for rental reform. “Something needs to change here,” he said. “There’s a lot of frustrated residents, because their quality of life has been affected.”

The Middletown Economic Advisory Committee has been working on policy changes for the council to consider. They recommend amending the definition of a short-term rental to reduce the timeline to 21 days or less. A letter from Chairman Robert Silva stated that property owners who rent for greater than 21 days should not be held to the same standard as those who offer short-term rentals because “they do not directly compete with established lodging businesses.” Long-term rental operators would still be subject to registration, inspections and fee requirements.

No vote was taken on any reforms. The council plans to take up the discussion again at the next regular meeting on Feb. 1. Councilors Terri Flynn and Dennis Turano, as well as town solicitor Peter Regan, vowed to recuse themselves from any discussion because they operate short-term rentals in Middletown.

Sylvia and Rodrigues propose to tax short-term rentals at the commercial, rather than residential, property tax rate. The logic behind the move is that these rentals operate more as private small businesses than as supplements to personal income. The tax rate for fiscal year 2020 is $13.76 per $1,000 of assessed value for residents and $18.21 for commercial properties.

Another proposal being floated is requiring short-term rental operators to be immediately available to address issues with tenants or neighbors. Town officials said they have received numerous complaints regarding absentee operators. There was also discussion of strengthening the noise ordinance and assigning additional staff to oversee short-term rental operations.

Whatever the outcome, there was a consensus among councilors that enforcing strict compliance with the laws already on the books should be a focus moving forward. This could be accomplished by hiring a dedicated enforcement officer, perhaps on a seasonal basis to deal with the predominantly summer season rental market, councilors said.

“Enforcement has got to be the point. You’ve got to issue the citations,” said councilor Thomas Welch. “If you enforce the rules, then word gets out and you can start to change the culture.”

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Middletown Looks to Reform Short-Term Rental Ordinance - Newport This Week
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