City clamps down on illegal rentals

The city of Whitefish is better positioned to crack down on illegal short-term vacation rentals after the city council voted March 4 to approve a new zoning text amendment.

On a 4-1 vote, council agreed to amend zoning regulations to include a section regarding short term rental properties. The amendment creates a list of standards, clarifies regulations and addresses safety and enforcement issues.

Councilman Chris Hyatt was the lone vote in opposition. Councilor Phil Mitchell was not in attendance.

Vacation rentals of less than 30 days are allowed in WB-2, WB-3, Resort Residential and Resort Business districts. The new text amendment notes that short-term rentals aren’t allowed in other areas because they can bring traffic and noise to those neighborhoods. They also have potential to diminish availability of long-term rentals and affordable housing.

Planning Director David Taylor said in the past the city has attempted to identify illegal vacation rentals by searching websites like Vacation Rental By Owner and Craigslist. Four years ago they found as many as 100 illegal units.

The text amendments will give the city strength to enforce the policy when violations are found.

“Certain homeowners have been acting outside of the law,” said councilman Bill Kahle. “We’re trying to tighten up the standards so we have ability to enforce the laws.”

Five Star Rental owner Jill Zignego said during public comment she thought the amendment was a good idea, but was concerned about property owners on Whitefish Lake.

Zignego estimated that 20 to 25 vacation rentals on the lake would now be considered illegal with the new amendments. Most of the vacation rentals on the lake are used by families, she said, and asked that existing grandfathered properties be allowed to continue to operate.

Councilman Hyatt said eliminating rental homes on the lake could have a negative impact on the local economy.

“I’ve been at a few homes that have been rented,” he said. “They bring a lot of money to the community. They rent for a high rate and these people spend a lot of money here. I think we need to figure something else out. It will tear into the fabric of what we do as a resort community.”

Taylor said properties could be grandfathered if the owners can prove they have been rented out since the 1980s when the rental standards were put in place.