Myrtle Beach Enacts New Ordinance to Ban Hotel Conversions Amid Short-Term Rental Concerns
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Sponsor Our ArticlesIn a bold move that’s sure to stir up conversations among residents and visitors alike, Myrtle Beach has officially banned the conversion of hotels and motels near its beautiful oceanfront into apartment-style complexes. At a recent city council meeting on December 10, 2024, the council members came together in a unanimous vote, signaling a clear direction for the future of short-term rentals in this popular vacation destination.
As tourism plays a significant role in the local economy, the idea of transforming short-term rental properties into long-term living spaces raised quite a few eyebrows. Residents expressed concerns, prompting the city council to take action after a previous vote that didn’t allow public input. After adding a few amendments and holding a public comment session, the council happily passed the proposal a second time.
The new ordinance creates a zoning overlay, restricting properties from being converted into long-term rentals if they had been operating as short-term rentals for periods of less than 90 days. This zoning overlay primarily applies to properties located east of Kings Highway, where a majority of the short-term rentals reside.
Now, if you own a single-family home or duplex, don’t fret—you’re still exempt from these new restrictions! City Attorney William Bryan was instrumental in implementing an important amendment allowing those who held a business license before the ordinance was passed to continue using their properties for long-term rentals. However, to keep that privilege, property owners must maintain their business licenses. It’s a win-win situation for those who have been operating their rentals properly!
Myrtle Beach City Manager Fox Simons reassured everyone that this zoning overlay is flexible. He indicated that the city council could revise the overlay if it creates any complications down the road. As he succinctly put it, “It’s not open heart surgery.”
For those wondering what overlay zoning actually means, the University of Wisconsin-Stevens Point describes it as “a special zoning district, placed over an existing base zone(s), which identifies special provisions in addition to those in the underlying base zone.” This means that the new regulations aim to address short-term rentals in a manner that protects the community and overall development.
It seems the growing concern around preserving Myrtle Beach’s charm as a vacation hotspot whipped up some urgency in this decision. Assistant City Manager Brian Tucker highlighted the issues surrounding properties seeking to convert along Ocean Boulevard. While affordable housing is undoubtedly necessary for the community, he made it clear that former hotels and motels weren’t exactly fit for dignified long-term living. A valid point, considering the context!
However, not everything is cut and dry; property owners might still find loopholes and could potentially rent out rooms week-to-week to the same group of tenants. This “workaround” has raised eyebrows, leaving some city officials scratching their heads about enforcement.
Another compelling reason behind the move to keep short-term rentals under a careful watch pertains to tax revenue. The city has been mindful of the financial implications of losing hotel properties. A study conducted by South Carolina-based Muldrow & Associates made waves by estimating a loss of $2.48 million in tax revenue for every 1,000 short-term rental units switched to long-term status in Myrtle Beach. Furthermore, Horry County could see a loss of $1.19 million in tax revenue under similar circumstances! Yikes!
As residents and business owners alike absorb this news, many will be closely watching how this all unfolds. Myrtle Beach continues to be a jewel along the coast, and striking a balance between tourism and the needs of the community seems to be the mantra going forward. Exciting times ahead for this vibrant city as they continue to adapt to the changing landscape!
Ultimately, this decision reflects a commitment to preserving what makes Myrtle Beach unique while considering the challenges that affordable housing brings to the area. Here’s to hoping it all leads to a brighter future for both visitors and residents!
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