I am an Annapolitan. I watched, Robinson, Butler, Whitaker, and Wojcik in Halsey Field House. I have marched on Worden Field. I have sailed in hundreds of races on the bay as a kid and a mid.
I have lived in Annapolis since 1999 (21401 and now 21409). I am also a “non-resident” short-term vacation rental owner even though I live six miles from 21401. My father (Naval Academy class of ’69 and an Edgewater resident), brother (Houston, Texas) and I (Class of ’94) bought it in 2017 to generate some monthly income to strengthen our respective retirement plans.
We only cleared $10,000 (split three ways) in 2018 with 134 nights of occupancy. It is a nice place and therefore we maintain it as such often visiting the property two to three times a week.
In fact, we spent $17,000 in the last 18 months on internal and external improvements including $11,000 to replace our dilapidated off-street parking area.
If SVTR were enacted as written, we would have to sell. We would even need to sell with the 120-night rule. If you believe the Rockport Analytics report, 178 of the 502 Annapolis area listings are managed by entities with multiple listings.
For the sake of argument, assume that the average entity manages three properties. Therefore, 119 would likely be listed for sale since long-term rental income does not cover the costs of owning and maintaining a DTA property.
Let us also assume of the remaining 324 that 50% are “non-resident” who are also in the same leaky boat as us. That adds another 162 properties to be listed.
Of the now 162 Annapolis-resident STVR’s how many would be in the red with the 120-day limit? If the mortgage balance is at 65% or more of the home’s value then the 120 days rental income won’t cover their expenses either nor would converting to a long term rental.
Let us assume again 50% that would likely have to sell. 119 + 162 +81=362 properties to be listed when there are currently over 200 listed 21401. #annapolisfiresale, #foreclosuremuch, #21401bubble.
This probably crushes property values for 10+ years as foreclosure and short sale comparables won’t justify current home values.
So we sell at loss losing precious retirement dollars seemingly for the hotel and B&B lobby as well as a few very vocal residents who are opposed to the transient nature of STVRs.
Why punish those who risked their financial future to enter the STVR market? My druthers … do away with the residency requirement or grandfather us in without time limit, enact reasonable and logical licensing policies, drop any cap on nights, and enforce the hotel tax.
Over time the number of STVRs will drop without causing irreparable financial harm to existing non-resident owners or without long-term negative impact to Annapolis home values. The city gets the tax revenue and well maintained STVRs while local businesses continue to benefit from the money renters spend on the local economy.
A desired balance of residents, long-term renters, and short terms renters will be achieved over a period of time.
As an aside, I saw a recent opinion claiming that STVR renters don’t contribute any more than residents to the local economy. That may be true but I can say with certainty that 90% of my renters do no food prep at our STVR.
I know because I clean up after them and perform pre- and post-stay walk-throughs. That is breakfast ($15), lunch ($20), and dinner ($35) for six people typically Friday through Sunday.
Two of each meal makes $840 (without drinks!) for the weekend of which all are booked. What residents spend $840 a week eating out?
Garth Devries is an Annapolis-area resident who owns a short term rental in the city.
