An Airbnb next door? Gig Harbor treads a fine line between tourism, neighborhoods

Gig Harbor homeowners show growing interest in converting spare rooms to vacation rentals, officials say, and that puts the city in a dilemma.

On one hand, bed-and-breakfast rentals drive tourism, fill the lodging-tax coffers, and help keep downtown businesses afloat.

On the other, a high volume of Airbnb’s in the city could mean complaints about loud parties, large groups and parking problems in the city’s neighborhoods.

“There are many people who rent these that are respectful, but we know people rent out Airbnb’s for bachelor parties or multi-family gatherings,” said Katrina Knutson, the city’s community development director. “That’s where we get the complaints of noise and impacts of people trying to live their everyday life in our neighborhood.”

At a recent City Council meeting, Knutson called Airbnbs “a bubbling issue” that will have to be addressed sooner or later.

Quality of life

The vacation rental market is a multi-layered issue for the city. Both the tourism and community development department have been working together to address concerns.

“Quality of life is first and foremost for us,” said Laura Pettitt, the city’s tourism and communication director. “We support tourism and small businesses like Airbnbs, but we need to be careful about how they are applied.”

There are only three hotels within the city limits, so a plentiful supply of B&Bs gives visitors an alternative. But they can also drive down the supply of affordable housing, Knudson points out.

If there are too many short-term rentals, those homes will not go onto the housing market.

“That can have an impact on community character and the housing stock and drive up the need for additional units in the area,” Knutson said. “It’s something we need to be considerate about as we try to address affordable housing for people who want to live here.”

It is hard to get an accurate count of vacation rentals in the city. Currently, Airbnb lists up to 60 homes in the Gig Harbor area, ranging from a three-bedroom harborside craftsman to a cabin in the woods. About 20 of them appear to be within the city limits.

Prices range from $70 to $416 a night, depending on the number of beds, the view and amenities like a full kitchen.

Candy on the pillow

Lana Solnick, a Gig Harbor resident for 44 years, runs an Airbnb with her husband. Solnick has a one-bedroom three-bed guest unit on Soundview Drive. It’s part of Solnick’s home, being the downstairs area of the split-level house.

She’s right next to Hanger Clinic, who provides a hybrid prosthetic-orthotic device for salvaged limbs, and she has hosted many clinic patients from around the world.

“From Germany, France, throughout the United States, people from the Hanger Clinic stay with us, which is a huge bonus,” Solnick said.

Solnick has been running the Airbnb for the past two years, and is proud of her almost- perfect host score on the Airbnb website.

“I leave little candy on their pillow, give them socks, I add stuff to the refrigerator, I supply a big snack basket,” she said. “I wanted to provide what I wanted when I check into a hotel.”

Currently there is one vacation rental in process applying for a Gig Harbor business license, but Knutson said she’s had many inquiries.

“The data won’t tell you the story,” Knutson said. “From our perspective we’ve seen an uptick in inquiries, maybe 15 to 20, asking the city what the process will be.”

Compliance issue

Applicants need a state business license and credential from the city, which requires that they be in compliance with business regulations. They are also required to pay the city’s lodging tax. Many first-time bed-and-breakfast owners don’t realize this, Knudson said.

“People may think they are in compliance but do not know they are not,” said Pettitt, Really it’s just a compliance issue and it falls on the city to enforce.”

Currently Knudson and Pettitt are working together to put together a process that is transparent and easy to follow, so vacation rental owners can get licensed quickly.

When Airbnbs are done correctly, they can be an asset for the city, said Solnick, the Soundview Drive owner.

“We offer a definite service,” Solnick said. “People love to stay in a house.”

This story was originally published September 9, 2020 at 12:00 AM.