Short-term rental rules in these MS Coast cities sought delicate balance. Are they working?

The rules adopted last summer to govern short-term rentals in Bay St. Louis and Waveland had a simple goal: Preserve quaint cities without forsaking tourism.

Some short-term rentals were “just disrupting old neighborhoods,” Waveland Mayor Jay Trapani said. “We needed some controls.”

Months after they were adopted, the ordinances are still being debated in both cities.

A Bay St. Louis couple is appealing the city’s ordinance, arguing it discriminates against owners who live outside of Mississippi. In Waveland, some short-term rental owners say they want a simpler registration process. Trapani said other residents appreciate the new rules because they are sick of loud guests and crowded parking on residential streets.

Bay St. Louis

Few seem opposed to an ordinance in some form. But some in Bay St. Louis are raising questions about what the ordinance includes.

Robert and Mary Ellen Warner have filed an appeal in Hancock County Circuit Court, asking that a judge overturn the City Council’s adoption in August of its short-term rental ordinance. The Warners own property in the city and sometimes rent it out.

The appeal raises questions about the ordinance’s requirements for parking, occupancy and fees. The Warners’ attorney, Matthew McDade, said in a letter to the city that his clients oppose the requirement for off-street parking and question why occupancy limits apply to short-term rentals but apparently not other properties in the city. The letter also described the $100 application fee as an “arbitrary” tax.

McDade did not respond to several messages. In a January council meeting, he said his clients want to find “common sense regulation” but believe the current ordinance has enough discretion that the city could target them unfairly. The ordinance requires that an owner or property manager be able to respond to complaints in person within 30 minutes. McDade said the Warners are respected hosts but do not live within 20 miles of their Bay St. Louis property.

“They’re not the problem that I believe is trying to be addressed,” he said. “Yet the way this ordinance is written, it can be weaponized against them today.”

Mayor Mike Favre declined to be interviewed for this story because of the pending litigation. In a statement, he said short-term rentals have fueled Bay St. Louis’ economy and that the city “recognizes the vital role these rentals play in filling the gap left by limited hotel and motel accommodations.”

“This ordinance is designed to ensure that property owners, visitors, and neighbors are protected,” he said. “It’s not about restricting short-term rentals but about creating a regulatory framework that upholds our standards and maintains Bay St. Louis as a premier coastal destination for both residents and visitors.”

McDade asked Bay St. Louis leaders to consider pausing the ordinance until they can hold an open forum to consider amendments.

Waveland

Lisa Johnson and Maria Perez manage one property in Waveland and one in Bay St. Louis. They support the idea of an ordinance and said the system in Bay St. Louis was simple.

They grew frustrated with the cost and application in Waveland.

Waveland requires owners to pay for two garbage containers and submit paperwork, including a copy of the warranty deed, a water bill, and parking, emergency escape and floor plans. Johnson said she sold another property in Waveland after the ordinance was passed because she did not want to deal with the hassle of registering it.

“It is just a cumbersome, expensive process,” Perez said. “It doesn’t feel as embracing and as friendly to the small-business owner.”

“It’s like they don’t want us here,” Johnson said.

Waveland amended parts of its ordinance in September. It first required short-term rental owners to go through a public hearing with the Planning and Zoning Commission before an application went before the mayor and Board of Aldermen for approval. The city changed the process and now the building department reviews applications before they go to the Board. Perez said the change would not solve the concerns over the application’s costs or how much paperwork owners must provide.

Trapani said residents had long complained about short-term rentals because of noise and overcrowding. He said complaints have quieted since the ordinance took effect. The city has not fined any owners or denied any permits.

“We really haven’t stopped anybody,” he said.

What ordinances say

The ordinances vary.

• Registering costs $100 in Bay St. Louis. In Waveland, it costs $350.
• In Waveland, short-term rentals are allowed in residential and commercial neighborhoods, but limited to one rental unit per single-family home in single-family neighborhoods. Bay St. Louis’ ordinance does not regulate where short-term rentals are allowed.
• Bay St. Louis has no cap on how many properties can register. Waveland’s ordinance says the number of short-term rental permits cannot exceed 5 percent of the city’s total homes.

Waveland has about 40 permitted short-term rentals, according to the mayor. It is unclear how many short-term rental properties existed in the city before the ordinance was passed.

Bay St. Louis has now approved 152 permits and counting, according to the city. There were 472 short-term rental listings in 2023.

Kandace Grogg manages several short-term rentals in Bay St. Louis and said the ordinance could discourage some from hosting and stabilize the number of rentals.

“It’s an oversaturated market,” she said.

Other residents and property owners say some regulation is necessary because inspections will help prevent fire hazards and ensure properties are safe.

“Owners might look at it as government overreach,” said Michelle Chiasson, who manages short-term rentals through her business Coastal Concierge. But “they’re just trying to protect people who are coming to visit.”

Staff writer Anita Lee contributed reporting.