Lake Norman towns wrestle with vacation rentals
With more vacation rental properties popping up around the lake, neighbors and local governments look to regulate while property owners fight for their rights. (Courtesy of Steve Haimbaugh)
As the Lake Norman area grows, more people will look to lakefront communities as a destination for vacation. That is, if regulations don’t prevent it.
Some local leaders say allowing more vacation rental properties on the lake could cause problems for neighbors, but property owners say they have a right to determine how they use their land.
The issue caused an uproar in Cornelius earlier this year when the grace period for existing rentals expired. Resident Steve Haimbaugh complained that the town was preventing him from recovering his investment.
Single-family homes in Cornelius can be rented on a long-term lease basis or as vacation for up to three weeks a year without a permit. Only condos are allowed for short-term rentals with a permit.
So when residents in Denver and Lake Norman complained about the parties and loud music coming from a new vacation house almost every weekend, Lincoln County planners turned to Cornelius’s land use code for guidance.
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“In the few times they’ve rented this, it has been an absolute nightmare,” Sharon Malmberg told Lincoln County commissioners in May. She lives next door to the rental property on Howard Lane. “There was drinking, noisy partying and 20 cars in the street.”
Lake Norman Neighbors said they were also worried about safety on the water. They said it could be dangerous if an inexperienced renter tried driving a boat through their narrow cove.
“This is kind of a new animal,” Lincoln County Manager George Wood said. “It doesn’t fall under the definition of hotel or bed and breakfast. … So do we outlaw or regulate it?”
Wood said there are 14 known vacation rental properties in Lincoln County. The Howard Lane property is the first one that he knows has caused problems. So instead of eliminating vacation rentals, Lincoln County hopes to develop a list of restrictions for them.
“We’re trying to balance everybody’s rights. People have a right to the use of their property,” he said. “A lot of people rent out and have no problems. Do we want to impact those people’s property rights when there’s not a problem?”
Lincoln County’s Planning Board is considering an ordinance that treats the problems identified by neighbors without completely eliminating vacation rentals.
That ordinance requires permits for vacation rentals and limits parking to designated areas.
With little waterfront property in their jurisdictions, Davidson, Huntersville and Mooresville don’t regulate vacation rentals.
Cornelius Town Manager Anthony Roberts said the town was looking out for those who live next door to a rental property when they passed the regulation.
“We’re not Myrtle Beach. We are a residential community,” Roberts said. “(People want) peace and quiet and to build a sense of community.”
Banning vacation rentals in single-family homes in Lincoln County could lead to more problems. After Cornelius decided to limit vacation rentals to condos and apartments, property owners showed up outraged.
Haimbaugh and his wife, Lisa, bought a lakefront house in Cornelius in March 2006 to open up to families on vacation. They also added a small cottage and garage to the property.
Three years later, Cornelius adopted an ordinance banning vacation rentals in single-family neighborhoods. The Haimbaughs were left with a hefty mortgage on a house they could not rent.
They asked the Cornelius Town Board for an extension in January so they could continue operating the rental and recover their losses on the property. Town commissioners denied the request because the Haimbaughs had a violation of the permit in 2009.
Since that violation, Haimbaugh said he has been more selective of his tenants.
“I make sure that we rent to families,” he said. “At $5,000 a week, I’ve gotten some really nice, classy people.”
So when the town told him to shut down the rental, he decided to fight it.
“I thought vacation rentals were property owners’ rights that were sacred,” Haimbaugh said.
He’s taking the case to the state Superior Court, which he thinks will set the precedent for vacation rental regulation.
“The thing is, myself aside, the decision could impact Denver, Mooresville and all of the Lake Norman area,” Haimbaugh said.
Haimbaugh said he understands his neighbors concerns about renters and reduced property values, but thinks he has a right to do what he wants on his property.
“Both of my neighbors would prefer that we didn’t rent the property,” he said. “I get that, I understand that. I try to do a very thorough job of talking with (the families who rent from me). Occasionally you get someone who doesn’t know any better.”
Cornelius’ vacation rental regulations
The ordinance that regulates Cornelius vacation rental properties includes:
• Property owners must obtain a permit to operate a vacation rental.
• The residence cannot house more than one tenancy in a seven-day period.
• Rental homes cannot be used for special events.
• Vehicles must be parked in a designated parking area. No more than two cars per bedroom are allowed at all times.
• No more than three people per bedroom are allowed on the property at one time.
• Property owners must designate a local contact person who can respond to concerns and complaints.
• Owners or operators must make efforts to minimize outside noise after 10 p.m.
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