Illegal Vacation Rentals In Asheville Receive No Fines

A 17 North Market St. condominium has nine illegal vacation rentals without permits on platforms like Airbnb and Vrbo. However, the city has not fined the unit owners despite homeowner reports.

Illegal Vacation Rentals in Asheville Condo

Nine condominium owners have listed illegal vacation rentals on platforms like Vrbo and Airbnb. They receive positive reviews from tenants. However, these short-term vacation rentals (STVRs) are not illegal because they violate the HOA’s rental restrictions but because they do not have valid permits registered through Asheville City.

The ordinances of the city of Asheville prohibit STVRs without permits. These illegal vacation rentals have been active since the condominium was renovated in 2021. However, STVRs were banned years prior in 2018. If fined, these illegal vacation rentals could receive penalties of $500 per day. A former resident named Hiren Patel filed a report for STR activity in 2022. Despite this, however, the city of Asheville has not fined the unit owners.

The only residents who currently live in the condominium full-time, namely Ken and Joan Pierce, have been living with these illegal vacation rentals for two years. They are imprisoned in a nest of short-term rentals (STRs) despite loving the city of Asheville. When the city finally issued violation notices against some owners, they responded by applying for a change of use permit in January. The permit would allow the condo units to operate as hotels if approved.

Avoiding Fines

Kim and Christian Oliver are fellow unit owners who intend to move to the area full-time. They live just across the Pierces. The Olivers compiled more than 830 reviews from the listings on Towns Property Management, Vrbo, and Airbnb. According to their calculations, the unlevied fines should amount to $417,000 if each review incurred a $500 penalty. Moreover, the penalties could have even reached $1.6 million because not all tenants leave reviews.

Ken Pierce said they understood the city ordinances and relied on them. They trusted the city to enforce the rules and fine the unit owners. According to Kim Oliver, the issue lies with enforcement and city laws.

Asheville City did issue a notice of violation to eight of the unit owners, according to city spokesperson Kim Miller. Moreover, they sent four citations for units that had already received a notice of violation. One more unit was issued a violation notice, and three other properties are being investigated for compliance. The city will only issue fines if the property owners do not comply.

No Help from Airbnb and Vrbo

City Councilwoman Sage Turner said the problem with city regulation is that companies like Airbnb and Vrbo do not always help. They can enforce STVR rules if the platforms use their available tools. However, these websites are not cooperating and refuse to turn on the tool for Asheville City. They have already done so for other cities, but they’re attempting to negotiate with Asheville City. These platforms have only agreed to add the tool necessary if the city frees up large portions for STVR use.

Meanwhile, the city of Asheville has a dedicated app where residents can send in STR violation reports. In November and December, the city only received three such reports through the app. Meanwhile, they received 24 reports during January due to the rise in coverage of STR regulations.

These reports are crucial as the city is left to trail and prove STRs themselves without the reports. It is time-consuming and expensive. Moreover, it mainly relies on neighbor leads. The process would be faster if platforms like Airbnb cooperated. However, dealing with these companies usually entails legal processes and delays, impacting enforcement timelines.

Living Among STVR Renters

The 17 North Market St. building has stunning views of the city skyline, high ceilings, and a rich history. However, living in the building is a different experience despite its beauty. Ken Pierce says some renters run drunkenly down the hallway and make noise. On weekdays, they may be alone in the building. However, the weekends are packed, especially during the summer. The residents have raised the issue of legality regarding the STVRs. They also violate the HOA’s covenants.

When tenants are present, the parking garage is filled with STVR renters. Joan said that some cleaners have even used their designated parking spot. They used it so often that the Pierces placed a traffic cone on their spot. Moreover, Ken said the renters sometimes take their stuff, like their wagon. They use this to bring groceries to their unit.

Frustrated Homeowners

The Pierces and Olivers begrudgingly made peace with the illegal vacation rentals because they did not want to start a conflict in the condominium. However, their stances changed when the unit owners petitioned to operate as a hotel. Moreover, the unit owners only found out about the petition through a Citizen Times report. The condominium association did not inform them of the application.

According to the Olivers and Pierces, the condo association explicitly stated the building would not have STVRs when they bought the units. However, they must worry about how they will live if the proposal is approved. Ken Pierce is also an active member of the condo association’s board. He even partnered with a few business owners to clear the alley next to the building.

However, he did not know about the application despite his board involvement. The petition was done in secret. The two other board members are developers. One includes Brett Krueger, one of the building’s developers and a representative for the hotel project. According to Kim Oliver, she thinks the application was filed to avoid penalties and city regulations. After all, the homeowners have begrudgingly accepted the STVRs because they didn’t know they could do anything about it.

No Permits

Most of the illegal vacation rentals charge $304 per night. However, most reviews on Vrbo indicate that guests stay for longer — sometimes even up to a week. Towns Property Management is based in Asheville and manages eight of the nine illegal vacation rentals. According to its website, the company handles 103 STRs in the city.

The unit owners applied on January 9. This led to back-and-forth communication with the city of Asheville. Will Palmquist, the City Principal Planner, says the city will now require an affidavit from all condominium unit owners for the project from here on out. Without all the affidavits, the application will be considered incomplete.

Meanwhile, Brett Krueger stated that the goal the entire time was to comply with the city. On February 1, he told the Citizen Times he would have called the homeowners if he knew they would be upset.