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5 Ways Extreme Short-Term Rental Regulations Devastate Local Community Prosperity
Dated: January 27 2023
Views: 114
Hans and Gitte were excited and exhilarated when they finally bought their first house in Centre County, Pennsylvania. Sure, their monthly loan payment was a stretch - but even though they had great credit and stable jobs, they were out of their "comfort zone" when it was time to write that monthly check to pay the mortgage.
They did a lot of research, however, about becoming successful short-term rental hosts.
They had a financial plan to live inside that "comfort zone" and build wealth as home owners.
Several long weekends of AirBnB rentals over the course of a year would go a long way to soften the blow of that monthly mortgage payment and help them save for renovations they wanted to make, and that would increase the value of their home.
The American Dream was finally within reach for Hans and Gitte.
Sadly, just as they were getting settled in their new nest, the couple got some shocking news. The local municipal authority decided to ban new short-term rentals, freezing new licenses, making their dream of using AirBnB to supplement their income impossible. Hans and Gitte were crushed. Without that extra income the renovations they were planning would be impossible...
That "comfort zone" was suddenly out of reach.
Their well laid out financial plan was in shambles.
Hans and Gitte’s story of being hit with a surprise ban on short-term rentals is all too familiar in many communities, like State College and Bellefonte, Pennsylvania. Homeowners should be able to use their property as they see fit, and they should not be punished just because they are trying to make a living in a sharing economy.
And it's not just property owners who suffer from short-sighted local policymaking. The entire community suffers a host of negative impacts following moves that severely restrict short-term rentals:
1. Reduced economic benefits: Severely restricting short-term rentals can greatly reduce the economic benefits that the sharing economy brings to a community, such as increased tourism and job creation.
2. Loss of income for homeowners: Homeowners who rely on short-term rentals as a source of income may lose that income if restrictions are put in place.
3. Reduced housing availability: Restrictions on short-term rentals can make it more difficult for people to find affordable housing in popular tourist areas, which can lead to price increases and reduced availability.
4. Infringement on property rights: Restrictions on short-term rentals can be seen as an infringement on homeowners' property rights, as it limits their ability to use their property as they see fit.
5. Reduced competition: Restrictions on short-term rentals can reduce competition in the lodging market, which can lead to higher prices for consumers.
It’s time for local governments to recognize the importance of short-term rentals and the positive contributions they can make to their communities. Let’s take a stand and fight for our right to rent our homes!
Frances Thorsen
Frances Thorsen is a leading real estate author and thought leader. She got her real estate license and became a REALTOR® in 1985. She was an early adopter of real estate technology on the Interne....
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