Residents in Anna Maria and Holmes Beach recently have expressed concerns related to the growth of vacation rentals in residential neighborhoods.
Some fear the Island, particularly Holmes Beach, is losing its identity and character to the construction and renovation of multi-unit and short-term rentals.
Island real estate agents acknowledge certain problems, but attribute the growth of duplex construction to a market driven by investors, and they note that this change has helped keep the Island’s economy afloat.
The issue has become so acute that Holmes Beach commissioners planned a work session Dec. 13 to discuss potential solutions.
In Anna Maria, where more than half of the single-family houses are estimated to be vacation rentals, similar concerns have surfaced. Members of the planning and zoning board recently asked the city commission to look into some of the same rental problems plaguing Holmes Beach.
Several Holmes Beach residents in the city’s R-2 zone, where duplexes are allowed, have complained about the construction of “mega-duplexes” with four or more bedrooms in each unit. Residents also say the duplexes generate loud parties after 10 p.m., numerous vehicles parked in the rights of way and trash cans left curbside for several days before a scheduled pickup.
Long-time city resident Mary Buonagura expressed concern to city commissioners at a recent meeting that rental duplexes are “changing the Island” from a balance of rental and residential properties to “a short-term vacation resort.”
The changing Island, however, is “market driven,” and builders and property owners are simply responding to the demands of buyers, according to local agents and developers.
Jesse Brisson of Gulf-Bay Real Estate in Holmes Beach said when real estate values on Anna Maria Island began to decline in early 2008, buyers sat on the sidelines waiting for the market to hit bottom.
When property values began to rise in 2010, Brisson said buyers were no longer families looking to move to Anna Maria Island, but investors and families planning to retire here in 5-10 years.
“The families wanted something they could use for a few weeks a year, then rent for the remainder,” he said of the people who have come to his agency. The investors, on the other hand, are looking for a return on investment, Brisson added.
Anna Maria real estate agent Jason Sato said homeowners from 2003 to 2006 were selling their houses at a profit and moving off the Island to less expensive accommodations. The new owners found that houses could be rented on a daily basis in Anna Maria, an attraction to vacationers.
In Holmes Beach, investors discovered multi-bedroom duplexes could be built in the R-2 zone in accordance with applicable laws, said developer Shawn Kaleta.
Although some city residents have complained about the look of the duplexes, Kaleta said every project was built according to code and was permitted by the city, and construction was fueled by market demand.
Such construction was “market-driven,” he said. “Buyers are investors looking for a return on their investment.”
Should Holmes Beach change its building code on duplexes or vacation rentals, Kaleta said he would be more than happy to comply.
“I own a few rentals and I don’t want six or seven cars parked there. If the city brings in parking restrictions or occupancy restrictions, I’ll abide by the rules,” he said.
Additionally, the growth of tourism is contributing to the construction and sale of vacation rental properties, Sato said.
“Tourism is booming. People are coming here and falling in love with the Island and decide they’d like a piece of paradise,” he said.
In the past 10 years, Anna Maria Island has been featured on national television travel programs, in numerous magazines, and in newspapers such as The New York Times, Washington Post, Los Angeles Times and USA Today.
“We’ve been discovered. We are known as a great vacation destination for peace and quiet, beautiful beaches and old Florida ambiance,” he said. Anna Maria Island is a tourist-driven economy, Sato noted.
The Bradenton Area Convention and Visitors Bureau spends millions of dollars each year to keep visitors coming.
And it’s working, as tourism has increased every year since 2008 and is up 6.5 percent for 2011 compared with last year at this time, according to the latest BACVB statistics.
The tourism influx helps the local economy and the public treasury, Brisson said. Manatee County collected more than $7 million in 2010-11 from the 5 percent resort tax charged for each accommodation rental of six months or less.
Additionally, the county’s 6.5 percent sales tax on all rentals brings in millions to the Florida Department of Revenue each year and eventually to the county.
The problem of vacation rentals might mean the Island is a victim of its own success.
More visitors equals more potential buyers, Sato said. Kaleta said the serious real estate investor is searching for a rental property that has a greater return on investment than a single-family home rental. That creates the demand for construction of multi-bedroom duplexes.
The problem appears to be blending rentals with residents in a workable situation, Kaleta said.
Brisson, Sato and Kaleta agreed there has to be a balance. Without the vacation rental sales and tourism increase, “a lot of people on the Island would have gone out of business” the past few years, Kaleta said.
Sales up, population down
The Island real estate market has changed since 2005.
While the population is declining, the number of vacation rentals appears to be increasing with tourism.
The 2010 U.S. Census Bureau reported the Island population declined by 1,122 from 2000 to 2010, a 21.2 percent drop.
For the same decade, the Manatee County Supervisor of Elections Office reported that Island voter registration fell by 17.9 percent, from 6,679 voters in 2000 to 5,486 in 2010. The Manatee County Property Appraiser’s Office reported applications from Island residents for the annual homestead exemption were down by 66 percent this year when compared with 2005.
“Clearly people were selling their homes at a profit and moving to less expensive houses on the mainland or elsewhere,” Kaleta said.
As population dropped, tourism was on the rise, resulting in a need and demand for more tourist accommodations, particularly short-term rentals, he observed.
Kaleta lives on the Island and understands that a few renters can spoil the vacation rental success. It’s the few people who think they can party all night and turn up the stereo volume who cause the problems.
“We try to rent to people who will behave, enjoy themselves and live by our rules,” he said.
Kaleta, Sato, Brisson and other agents inform renters of garbage pickup days, restrictions on noise in the city and to be a good neighbor Brisson said.
Unfortunately, there’s always somebody who doesn’t want to vacation by the rules.
“All we can do is continue to educate agents and renters,” Brisson said.
With the success of Island accommodation rentals, some companies are actively seeking the serious investor to buy a multi-bedroom duplex or house on the Island.
Companies such as 9Solutions LLC are marketing sales and rental management services to Island investors as one package, noting online the additional income potential from multi-bedroom structures.
Online advertising for 9Solutions says it purchased old duplexes on the Island and replaced them with “larger, 4-6 bed townhouses with a view to accommodating more and more visitors.”
The company claims a six-bedroom home can sleep 14 to 18 people, allowing “three or more families to vacation together at a much lower average cost.”
The problems of residents and vacation rentals can be overcome, Kaleta said. “We need to find common ground where everyone can live together,” he said.
I am writing in response to the Vacation rental boom problem. I knew I was moving onto a vacation Island, so I don’t get upset when the bridge goes up, or it takes a half hour to get to the freeway. I don’t get too upset when I am behind someone going 20 MPH in a 35MPH zone, and I don’t dare look at our beautiful view, because they might stop to turn into a motel. I don’t get upset when in season I have to turn right when I want to go left, just to get out of my street onto Gulf drive. Sometimes I get a little upset at the grocery store and can’t get down the aisle. But I think to myself, if you’re in a hurry you shouldn’t live on a vacation Island. But I do get upset now that I have five vacation rentals in a row, which has turned our street into a motel from hell.
I have lived here for 15 years, and I would like to think full time residents help the Island economy too. Unlike vacation rentals I buy gas, groceries, (which are 7.5% more) shop, drink and eat at restaurants every week. Not just 10 or 20 weeks, but 52 weeks a year. We have to maintain our yards, and our pools just like the rental property. We also know when to take the trash and recyclables out and back to the house. Yes I was one of the first garbage police, as the Mayor called me in your paper. But I do bring in one of the vacation homes, recycle and garbage containers, because I have met them in person and they have become a good neighbor and friend.
There are 12 houses on my side of the street. When I moved in, there was only one vacation rental, for retirement investment. It has sold twice, and is still a retirement investment vacation rental. Theres four more next to it now, which I like to call them the Bates motel, because I never know who is going to be staying there. I also have four part time summer vacation homes with house guest which stay for a week at a time, not a problem. There are only three full time residents counting me on my side of the street. Soon to be two.
After reading our Islander paper it sounds like investments in vacation homes are keeping the Island economy afloat. If we need more tax money maybe we should rethink the three story rule. I am sure the motels would like to go higher in order to compete with home rental. Then, with all the new taxes, it won’t be long before they replace the Manatee Beach pier.
It’s too bad Holmes Beach doesn’t have a rule like Key Royale (which is in the Holmes Beach city limits) it has a minimum of 30-days. I have no problem with snow birds that rent for a month or more. So if you can’t fight them, join them. I am a landlord in Oneco, the next time I need a renter, I think I will rent it to myself, and then I will have a vacation income rental too.
I don’t think I can stop income rental, but I do think we could slow it down, and help the unemployed island construction worker. All we have to do is pass a city ordinance which states that all permitted construction projects must have all employees, contract employees and sub-contractors, E-Verified. This does not include service jobs that would lower the unemployment rate to less then five percent.
How about …. There’s more to the story and it’s a fine opportunity for a journalist.
It is interesting how cozy some realtors and developers have become. I don’t think everything they do is above board. I will be testing that soon. I’ll let you know the results.
For twenty years we’ve been parking on a very quiet side street in Holmes Beach. Now, when we go there, garbage is stacked up outside the rentals. July 4th we encountered some of these cocky people. As usual, we head to the beach early to get a good spot for the fireworks. Much to our chagrin, the people we saw emerging from these rentals, refused to move from the center of the street as we tried to drive down it. The cocky, defiant looks on their faces was enough to turn your stomach. The ruination has already begun. I truly miss those wonderful, SINGLE FAMILY HOMES that used to grace the streets of HB. Though I’m orginally from Western NYState, this has been home to me for twenty-one years. I mourn the loss of Island Life, and don’t give a squat about the double-speak “MARKET DRIVEN” blather. Just keep piling them higher and deeper, while you smile and proclaim to care about this island. Funny thing is, it takes a while for CAUSE AND EFFECT TO UNFOLD. Guess you can see I’m not a fan of this gaudy, excessive, Greed-Driven trend.
Mermaiden………..you are so on the heart of the problem ..gaudy ,greed, tax base driven. Wake up town fathers, for the old axium penny wise and pound foolish truly applies to Holmes Beach. The increased tax revenue will be non existant when a few years from now all the easter egg “land condos” are in foreclosure. God help us one and all!
Greed. Not a new concept but obviously an irresistible one. My family has traveled 3000km for the last 6 years to enjoy your ‘old Florida’ Its been wonderful. Thank you. Where do I turn for ‘old Arizona’?.
Political greed is the original cause of people having to sell or rent their homes on the island. Taxes used to be based on what you actually paid for your house. Then greedy politicians based the taxes on the currently assessed value of the house.
People just could not afford to pay these taxes on the retirement that was based on a much lower cost of living. It was so nice when families could afford to live on the island.
this is the first time i have read a comment that shares my views. people who bought property instead of wasting their income on brand new boats, cars, etc., are being penalized every single year when they pay property taxes on the current value of their homes.
Doc,You would be sisrruped how many people do not fully grasp the full size and scope of the Big Island. As far as the bus goes, the Hele On does offer limited routes in some areas, but by far does not compare to the fully developed public trans system on Oahu.Bottom Line: rent a car and discover the Big Island.VA:F [1.9.11_1134]please wait…VA:F [1.9.11_1134](from 0 votes)
From a cold wintery UK I arrived for my first visit in a Nov, 12 years ago, both my husband and I instantly fell in love with the island. If US immigration would allow us to live and work in the US we would be living with you now. Therefore I can fully appreciate the full time residents point of view and I am in complete agreement with them. Every year we return and there seem to be more people, it worries me as a visitor that the ambience of the place may go.
It’s lovely to live on this beautiful island, but tourism has drastically affected our island life. We once were a collection of islanders and we welcomed the ‘snowbirds’ who stayed with us for the winter season and also had an investment the island, the beaches and the ecology. Now we have a new brand of visitors who are only here for a good time. It’s true that the businesses have seen greater profits, but we full time islanders are paying the price. I’ve asked the director of tourism this simple question: where do you draw the line on favoring island business over island family life? His answer was that they weren’t any where near done promoting this island. I think we were a lot better off when we were the ‘best kept secret’ – that was the balance point where visitors and residents lived in relative peace and joy.