Homeowners for responsible community balance by limiting short-term rentals.
We are a coalition of homeowners committed to preserving the character, stability, and long-term value of our community. Our mission is to advocate for a responsible and balanced rental cap policy that prioritizes resident engagement, protects property values, ensures neighborhood safety, and maintains the peaceful residential nature of our community. We believe that thoughtful limits on short-term and investor-owned rentals will help sustain a vibrant, owner-occupied environment where families, retirees, and neighbors can thrive together.
The fact is that short-term rentals have steadily increased over the past several years. If actions are not taken now, there is the potential for all of us to experience negative financial impacts to one of our largest investments, our home.
NOTE: This group does not represent the Coastal Club HOA Board Members and our opinions are solely our own.
FACT:
Multiple studies suggest that neighborhoods with high rental concentrations may experience a decline in home values over time compared to primarily owner-occupied communities
WHAT THIS MEANS TO YOU:
Heavy rental concentration can shave several percentage points from resale values and increase costs for stay-put owners.
Too many short term rentals can chill demand and hurt resale timing even in once-hot vacation markets
RESOURCES:
FACT:
A moderate number of STRs can boost values, but overconcentration leads to investor dominance and turnover.
WHAT THIS MEANS TO YOU:
A rental cap keeps our neighborhood attractive to both residents and investors, protecting home values.
RESOURCES:
FACT:
Without limits, investors may buy homes in bulk, shifting the neighborhood into a rental zone.
WHAT THIS MEANS TO YOU:
A rental cap helps prevent investor takeover and preserves a balanced, livable community.
RESOURCES:
FACT:
High STR density attracts investor buyers rather than full-time residents.
WHAT THIS MEANS TO YOU:
Families and long-term buyers may avoid STR-heavy neighborhoods, leaving mostly investors. This can limit demand and flexibility when selling your home.
RESOURCES:
FACT:
As liability exposure increases with STR activity (more guests, higher turnover), many insurers refuse to insure entire associations if STRs exceed 10% of total units.
WHAT THIS MEANS TO YOU:
HOA Dues Increase: association-level insurance premiums may increase, or carriers might refuse coverage or impose restrictive underwriting.
RESOURCES:
FACT:
Lenders consider neighborhood stability when approving loans. STR-heavy areas may face stricter terms.
WHAT THIS MEANS TO YOU:
Excessive STRs could limit access to favorable mortgage products for buyers, making homes harder to sell.
RESOURCES:
Industry lending guidelines.
FACT:
Once STR investors dominate, HOAs often struggle to pass new restrictions because investor owners vote as a bloc.
WHAT THIS MEANS TO YOU:
Acting now with a cap protects the HOA’s ability to guide the community in the future.
RESOURCES:
FACT:
Courts have upheld the right of HOAs to impose reasonable rental caps, as long as they are written into governing documents and applied fairly.
WHAT THIS MEANS TO YOU:
Our HOA is on solid legal ground to adopt fair rental limits that reflect the will of the community.
RESOURCES:
Laguna Royale Owners Assn. v. Darger (California case law)
FACT:
Renters are often more transient and less familiar with HOA rules.
WHAT THIS MEANS TO YOU:
Fewer rentals mean fewer rule violations and smoother community living.
RESOURCES:
FACT:
STRs are linked to recurring complaints about noise, trash, and parking congestion.
WHAT THIS MEANS TO YOU:
A cap prevents excessive weekend turnover and keeps the neighborhood peaceful.
RESOURCES:
FACT:
Investors are less likely to prioritize neighborhood character. Neighborhoods with higher STR density often face frequent turnover, more parking demand, and less neighbor familiarity.
WHAT THIS MEANS TO YOU:
A cap helps preserve the pride, quiet, and friendliness that make our neighborhood special. Limiting STRs keeps our streets safe, connected, and neighborly.
RESOURCES:
FACT:
Owner-occupants tend to stay longer, participate more in community activities, and invest in property upkeep.
WHAT THIS MEANS TO YOU:
More owner-occupied homes mean stronger community ties, better upkeep, and improved neighborhood safety.
RESOURCES:
FACT:
STRs can reduce housing availability for families, retirees, and local professionals. Lewes officials monitor STR growth for this reason - Lewes’s Rental Licensing FAQ notes the city adopted new rules in response to increased tourism and unlicensed rentals to better protect quality of life for residents.
WHAT THIS MEANS TO YOU:
A cap helps preserve homes for those who want to live here full-time, keeping our community strong.
RESOURCES:
FACT:
FHA and other mortgage insurers may deny loans if more than 50% of homes in a community are investor-owned.
WHAT THIS MEANS TO YOU:
Keeping rental levels in check ensures buyers can qualify for FHA loans, making homes easier to sell.
RESOURCES:
Advocate for:
A responsible Rental Cap on the number of Short-Term Rentals in our neighborhood.
Excluding Long-Term Rentals as the occupants of these types of rentals typically contribute positively to our community.
Providing a reasonable financial hardship policy that allows homeowners to apply for an exemption for a Long-Term Rental.
Grandfathering in existing registered rentals.
Policies to enforce fines and revoking of privileges to rent a home if the rental rules are not followed specifically renting for a term of less than 6 nights / 7 days.
Present a vote to the greater community to get approval to amend the Master Declaration based on the appropriate guidelines from DUOICA and our Master Declaration.
ONE
Learn about why Rental Caps are potentially very important to our community. If you are in support of them, please contact the HOA Board via SSI. We have created "turnkey" cut and paste messaging to submit in SSI. Click on the Contact the Board Form, fill out the required information, type "Rental Cap Advocacy" into the Title, open one of the messages below, copy and paste the message into the Details Section
SSI Contact the Board Form - CLICK HERE
CLICK HERE for Message #1 for Rental Cap Support - Data and Precedent Focus
CLICK HERE for Message #2 for Rental Cap Support - Community and Culture Focus
TWO
Talk to your neighbors and share why you believe it is important for the Coastal Club Community to have rental caps in place
THREE
Be an Advocate! You can do this on Social Media platforms, but the most impactful will be to speak at HOA Board Meetings in support of a Rental Cap Vote. Below are some sample statements you can personalize for HOA meetings:
CLICK HERE for multiple messages for in-person statements
Short-term rentals (STRs) are growing nationwide. While some are fine, too many rentals can weaken property values, community safety, and the very culture that makes our neighborhood special.
That’s why homeowners are coming together to advocate for a reasonable cap on STRs with no limits on long-term rentals.
Protect Home Values
Studies show neighborhoods with more homeowners see higher and more stable property values.
Cap keeps our neighborhood attractive to families, retirees, and investors alike.
FHA and other loans may not be available if too many homes are investor-owned.
Without loans, it’s harder to sell our homes.
Studies show STR growth attracts investors, not families.
Without limits, investors can dominate — reducing livability for residents.
Too many STRs raise insurance premiums and tighten loan options.
Caps help keep costs low and financing accessible.
Owner-occupants stay longer, invest more in upkeep, and join community life.
More homeowners = stronger, safer, better-connected neighborhood.
STR-heavy neighborhoods see more noise, turnover, and parking issues.
A cap keeps our streets neighborly and peaceful.
Too many STRs raise insurance premiums and tighten loan options.
Caps help keep costs low and financing accessible.
Courts have upheld HOA rental caps when applied fairly.
We are on firm legal ground.
Lobby the HOA to consider implementing a reasonable rental cap on STRs
Continue the Rental Registry
Policies that include fines and revoking of rental privileges if community rules are not followed and were contracutally agreed to upon purchase.
Call for a Community Vote on new policies and amend the Master Declaration base on the appropriate guidelines as set forth by DUIOCA and our Master Declaration.
“A rental cap isn’t about eliminating rentals. It’s about balance. By setting fair, sustainable limits, we protect property values, preserve neighborhood character, and ensure our community remains a safe, vibrant place for families, retirees, and neighbors to thrive.”
Section 7.6 - Rules and Regulations: Sec/ion 7. 6
Rules and Regulations. The Association shall have the right to adopt rules and regulations in accordance with § 81-320 of the Act governing the use by the Owners of the Common Areas Property and/or Lots, which rules and regulations shall not apply to any Participating Builder and which shall not be inconsistent with the provisions of this Declaration. Such rules and regulations may include the regulation of rentals in the Property and govern specific leasing standards, including, but not limited to, permitted signage or advertising, minimum lease terms and maximum number of occupants permitted to occupy a main dwelling, the display of American flags or other flags (consistent with federal law,§ 81-320 of the Act and Section 7.2 above, as applicable) and/or the display and placement of political signs (consistent with§ 81-320 of the Act). Any rules and regulations adopted by the Association shall be a governing document of the Association.
Rules & Regulations:
DUICOA
Under the Delaware Uniform Common Interest Ownership Act (DUCIOA), most declaration amendments need at least 67 percent approval. But when an amendment would “prohibit or materially restrict” how a unit may be used or who may occupy it—leasing limits like a rental cap fall in this bucket—it requires at least 80 percent of the votes (or a higher percentage if your declaration says so). The statute also requires reasonable protection for any use already permitted at the time the amendment is adopted. Delaware Code Online
Sources: DUCIOA §81-217(a) sets the general 67 percent standard; §81-217(f) sets the 80 percent threshold for use or occupancy restrictions.
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