VIRGINIA BEACH, Va. — Author's note: the video above is on file from Sept. 2021.
Large realtor groups and property owners have filed a lawsuit against the Virginia Beach City Council – asking a judge to throw out new rules for rental homes.
In the lawsuit, the Virginia Association of Realtors and Hampton Roads Realtors Association claim city council members went too far by passing an ordinance that further regulates short-term rentals.
They argue the new rules are "unreasonable" for homeowners and violate existing Virginia law, saying city council members "effectively banned" new short-term rentals outside of Sandbridge and the Oceanfront.
The suit claims the "overlay" zoning of STRs "substantially destroys the private property rights" of potentially thousands of people who might want to own and operate short-term rentals.
Homeowners like Holly Riahi, who want fewer restrictions, said allowing STRs throughout the city alleviates pressure on high tourism areas.
“I feel like if it’s your property, you should be able to do – within reason – whatever you want to do with it," Riahi said. "If they’re regulating it to certain parts of the city then all the people are crowding to those areas, when if it’s spread out throughout the city, only so many tourists are going to come to Virginia Beach."
City leaders passed new restrictions in response to neighborhood complaints – noise, parking, large groups at homes, and concern over a shift in the housing landscape across the city.
The lawsuit is the latest move in a power play over rental homes with online home-sharing companies like Airbnb and VRBO growing in popularity over the last decade.
The suit claims new smoke alarm rules for short-term rentals are not in compliance with Virginia law, calling the city council's Sept. 7 ordinance "unreasonable, arbitrary... illegal, null and void."
Currently, the city’s new rules include requiring signs that identify homes as rental properties and certain limits for “grandfathered properties” around the city.
The City of Virginia Beach says it will evaluate the lawsuit and respond to it appropriately when served. The realtors' associations declined to comment on their filing.