Do vacation rentals hurt the neighborhood?

Despite the popularity of Airbnb, such short-term rentals are illegal in many cities. A new group has formed to advocate for the right to rent to vacationers.

By Teresa at MSN Real Estate Feb 25, 2013 3:29PM
Couple floating in pool (© Carl & Ann Purcell/Corbis)When you travel, you may enjoy renting an apartment or a house for a week, experiencing city or country life like a local. The growth in popularity of Airbnb and the ease of finding tenants online has led to growth in short-term vacation rentals.
 
But in many municipalities, such short-term rentals are illegal. A group of short-term rental websites have joined forces to try to change that.
 

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Airbnb, HomeAway, TripAdvisor and FlipKey have created the Short Term Rental Advocacy Center. The center will advocate for laws and regulations that allow homeowners to rent out their homes, or rooms in their homes, to travelers short-term.

 

"As short-term rentals grow in popularity, some communities are asking questions about how to regulate the industry," Tim Doyle, a spokesman for the group, said in a news release announcing the new organization. "As leaders in the short-term rental marketplace, we want to make sure all stakeholders, but most importantly our customers, have a reliable source of information to contribute to this important discussion."

The group initially has chapters in several areas popular with travelers: Ashland, Ore.; Austin, Texas; Coachella Valley, Calif.; Marin County, Calif.; Maui, Hawaii; Miami; Myrtle Beach, S.C.; New York City; Santa Fe, N.M.; and San Francisco.

 

Property owners argue they should have the right to rent their homes for as little or as long as they want. But some neighbors object to short-term rentals, saying that visitors are disruptive and that using a house as a hotel is a business activity and should not be allowed in a residential area.

"Party houses" have been an issue in many tourist areas, including Miami Beach and Las Vegas.

 

The city of Las Vegas requires owners to get a license if they want to rent out their homes for less than 31 days and collects a tax on rental receipts. But surrounding Clark County does not allow short-term vacation rentals and is debating whether to change its law to allow short-term rentals.

"You may with good intentions be able to try to regulate it, but the devil is always in the details and who’s going to enforce it," County Commissioner Chris Giunchigliani  said at a recent meeting, as reported by The Las Vegas Sun. "I was on the phone yesterday with a person who rented their home out short-term. It’s a frat house with constant parties, beer cans and everything else. The neighborhood has been completely frustrated for a year and a half now."

 

But others argued that the "party house" issue isn’t the same as allowing families to rent vacation homes in residential areas.

 

"There is a vast difference between the vacation rental business and the party home business," John Palmer, who runs a vacation rental company, told the commission. "The typical customers are families with children. They want the security and the privacy that’s afforded by vacation rental homes. They don’t want to share the swimming pool with hundreds of other people. They don’t want to drag their kids through smoky casinos filled with gamblers."

 

What do you think? Should people be allowed to rent out their homes for a night or a week in residential areas?



 

Tags: rentals
29Comments
May 20, 2013 7:41AM
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I would say yes, if the house is your primarily a residence or you are legally renting it long term (at least 75% of the year). Outside of that, it's a primarily a tourist business and must be zoned and taxed as such. Lobby to get the zone changed if the majority of owners in the area want it.
May 20, 2013 7:40AM
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 We lived in SWFL for many years it was a pretty stable area until 2008 when the real estate stumble occurred.  Many of the homes in our neighborhood  were foreclosed and several became vacation rentals. I've seen many unsavory characters in these homes, loud parties late at night and into the morning drunks who couldn't find their house, naked people lounging around the pool, you have no way of knowing what kind of pedophiles and child molesters are in da hood . The three Bedrom house across our back fence has had as many as twenty people staying there all very young, late teens and early 20s  loud music  Every pizza delivery person im the area knew the gate codes to enter our gated subdivision I was happy to have the opportunity to sell and move away, but many of our old friends and neighbors are still suffering with the insanity. The majority of the vacation renters were and are nice family people that anyone would like,,,,, but the few bad apples who party all night or may be child molesters that potentially rent these homes make it a scarey proposition for the folks who live in the area or next door.

We rented a mountain Cabin in Pigeon Forge Tn recently for a week.. We found a dozen or more condoms, some used and a sandwich bag half full of marijuana. I called the sheriff who came and took pictures.and confiscated the bag. The rental agency was upset that I called the sheriff instead of them, they said housekeepers would have cleaned up the place and taken care of the drugs, but the fact is the housekeepers had been there and overlooked the stuff.

 Needless to say I wont rent from them again and I'm not sure they'd rent to me.

 I asked for my $1200 dollars back and offered to find other accomidations they refused to refund my money so we stayed there. Although my wife insisted that the housekeepers return and cleaned the place again we still went to WalMart in town and bought a supply of Lysol spray and managed to survive the germs.

 Short term rentals are potentially a monumental disaster. Most of us buy our  homes based on what the neighborhood is like. If your neighbors change every week or two you can't possibly know who or what you need to guard against if you have children it's even scarier,,,,, simply because all you know about the people is that they had enough money to pay the rent the people next door could potentially be serial killers or child molesters. I'd rather be sure who lives next door than find out too late that my child had been abused by some short term renter.

May 20, 2013 7:26AM
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We rent beautiful homes in beautiful neighborhoods.  We take our friends, kids and grandkids.  We are respectful of the neighborhood and the neighbors because we want the owners to not mind our returning.  We the owners are more aware of who rents their propert, how they behave and determine that they will or will not rent to them again this would be helpful all around.  I hope I can continue to rent homes like this as I don't believe I'll ever be able to afford a seven bedroom house on the beach in Florida or a five bedrom cabin in Tennesee. 

May 20, 2013 7:23AM
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There are already noise ordinances on the books.  Therefore there is already a legal remedy for "party" houses.  You would think that the homeowner would not want that type of rental anyway, because of the expense of clean up.

 

So, tax the proceeds and maybe fine owner for loud noise on property.  Then the owner will write that into the lease and charge a deposit if he's smart, so it won't end up costing him anything, but at least the town can make some money for having the cops constantly going over to break up parties.

May 20, 2013 6:59AM
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The fact that this is a question is insanity. It's your house. The idea that the government can tell you whether you can rent it out or not is ridiculous.

 

May 20, 2013 6:49AM
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I live at the Jersey Shore where some communities allow short term rental and others do not. I will NEVER live year-round in a town that allows short term rentals. The majority of the towns that do allow it have nothing but problems from the Bennies who think nothing of trashing the place. They are loud, disrespectful and drunk. Typically they are not families with kids but 20 something college kids blowing off steam. Think MTV if you want an idea of what I'm talking about. When the week long rental is $5,000-$10,000 do you really think the homeowner gives a crap if he gets a $500 fine for violating a noise ordinance? There are some places that have good reason for not wanting to allow short-term rentals. Now if you went a bit further south in NJ the beaches there don't have the same party scene so, yeah, the rentals are more family oriented, because the vacationers are more families and less partiers. So maybe I wouldn't mind that so much. (Though it's still annoying getting around those towns during the season when the town triples in population. Seriously, having to contend with beach traffic to get to work is a pain in the tush, but that's the price we pay I guess)

May 20, 2013 6:36AM
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The town should allow short term rentals, but levy a tax on the property owners, which would be used to pay for additional police detail to cover the house party problems.  i fell badly for anyone who lives next to someone who rents their house out to groups that disrupt the neighborhood. 
May 20, 2013 6:13AM
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Because I live on a very nice all sport lake, we have several "weekly" rentals. For the most part they are not so bad as to want to register a complaint. The biggest problems we have are people unfamiliar with Lake Life, who do not understand that there are LAWS regulating the usage of water, swimming, boating etc. Because I have positive relationships with the owners, and feel free to communicate with them, most issues were worked out between us. One issue in particular is trying to explain to someone (a renter Dad) that the inflatable BOAT his kids are jumping on and playing in the designated swimming area is NOT allowed. NO BOATS in a designated swimming area... PERIOD! I found myself very frustrated when I attempted to "explain" this (I make a point to say hello, and introduce myself when they arrive, and offer my pantry etc., if they need anything, and I share fresh produce, cut flowers strawberries etc. because this is my belief in an ounce of prevention) Back to the boat issue, I tried to explain why it could not continue... and that there would be swift intervention by law enforcement. What I told him was this... I understand your children are having fun... and they have choices... they can not use it in the swimming area, or they could move it and play on it OUTSIDE that designated area... but IF they continued we had "other neighbors" who were not so nice, and behaved like BEACH Police, who would call Law Enforcement and that he would receive a ticket, the 2-$300.00 inflatable WOULD BE impounded, and he would be liable to the property owner for replacing that boat. Sometimes in life you find that simple WORDS are NOT so simple. A boat is a boat is a boat is a boat... yes even the "blow-up" kind LOL He insisted that it was a bouncy raft for his kids to play on, and was NOT a boat "like that" LOL I even pointed out that the word BOAT was printed on it. All the while he has 5 or 6 kids looking at me like I am a horrible mean nasty awful person just trying to spoil their fun. LOL I gave it my best shot... and left telling them I hoped they had a great day. Before I got to my back door (I live across the street) Law Enforcement arrived... and a half hour later they were still there, and it was obvious that they had the boat... and were deflating it, and while doing so I saw one Officer holding up a portion of the BOAT pointing at it I assume where it was printed BOAT. Weekly rentals especially in vacation communities can work, and we have made many friends, who we look forward to returning year after year. Landlords MUST be accountable to the neighborhood, and shared facilities... like beaches, boat launches, docking areas... and make certain that you have done your part in educating those who will be moving in for a week or so. If Landlords are like those in my neighborhood... and are respectful, and thoughtful to those of us who live here every day... WE want to INSURE your Renters have a good time, are welcomed, and WANT to come back next year! *Dogs are an issue as well... and a responsible landlord will create designated dog areas in advance, and post leash laws etc in the rental. And Vacationers: if you KNOW you have a People or DOG aggressive animal... DON'T bring it near my Grandchildren, Friends or my Dogs! BOARD your DOG! Your VACATION should NEVER BE my NIGHTMARE!!! Hope those on all sides of this will take what I have shared as some positive steps you can make, to be certain everyone has a good time. I come at this issue from a perspective in which I VALUE my neighbors, their friends and families, and their choices for their properties, you could say I am a live and let live... When PEOPLE behave in adversarial ways they get a pre-determined result so if you are one side of this or the other... 1st look at yourself and access in an honest fashion your role! Have a great day folks! *smooches*
May 20, 2013 6:13AM
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I own a vacation rental in NW Montana, near Glacier Park. Our guests have been extremely respectful of our neighborhood and home. We've had 22 guests at a time and enjoy their being able to use our home and country atmosphere to relax and enjoy friends and family. We too only stay at vacation rentals wherever we travel. I sympathize with those who have disruptive individuals causing ill will in there area. All I can say is that this is a viable business, when operated properly can be an enjoyable experience for all involved. We love our business, and have met some very nice people which we hope will make our vacation home a destination place for their future travels. J.T.
May 20, 2013 5:49AM
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The house next to us is a vacation rental, 60% of the time the families are just nice folks. The other 40% are a nightmare. I am put in the position of being the watchdog for the rental outfit. I get the pain and they get the money. Single family homes are not hotels or condos and neighborhoods suffer with the bad actors. I'm not in favor of the practice.
May 20, 2013 5:37AM
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My neighbor rents their home out to vacationers.   I love it because it gives me the chance to meet new people from around the country, and sometimes, even the world.  The renters are almost always families with children and often even includes the grandparents.  There has never been a problem.  I wish some of my permanent neighbors were as quiet and respectful.
May 20, 2013 5:29AM
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when i lived in town, against my better judgement, there were some neigborhoods i wish the city had banned long-term rentals.

 

all night beer parties with guys p/ss/ng thru the fence at my dog, day time parties where they took leaks facing my wife and young children. the owners got tired of the complaints and sold the house to...guess who? some of the same people who had visited the previous tenants!

 

same wee-weers from before!

 

call the cops? they were already there visiting a couple of off-duty buddies!

May 20, 2013 5:28AM
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I have used a program called VRBO on several occasions to take my family on vacation . it is a very good service and provides a comfortable secure and economical avenue to visit some of the great vacation hot spots, including the Keys and  St. Augustine. $1600 a week for a home as apposed to $3500 for a resort hotel for seven. We have always been careful and respectful of the neighbors and property. With fair and consistent rules in place for the renter and the rentee it WORKS.
May 20, 2013 5:27AM
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I don't think I would like to rent in a neighborhood.  Condo is the way to go./
May 20, 2013 5:16AM
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No one wants their property damaged in any way.  Most homeowners are doing

this to hold on to their property.  In many cases, guests have been so attracted

to the neighborhood that they have bought a property themselves, helping everyone.

We need to be careful not to develop another element of rules which will end up

hurting us all. Simply showing respect for persons and property should be the goal.

May 20, 2013 5:16AM
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In my county we have over 250 'vacation rentals'. Many who come here bring all their toys- motorcycles, ATV's and think they can warm em up in the neighborhood. This does create discourse whith the full time home owners. I would not have any issues if the vacation owners paid their sales tax, lodging tax, and the house was considered a commercial operation during the time it was AVAILABLE for rent short term. Unfortunately, many are not up and up and just help to put the legitimate B&B's and Mom & Pop motels out of business. In all fairness, shouldn't a commercial enterprise be taxed as a commercial enterprise?
May 20, 2013 5:04AM
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I rent condos instead of hotels when I go on vacation, but that isn't the same as a neighborhood.  I think I would have a hard time with it in my neighborhood.  You like to be able to trust  your neighbors. The condo situation I think is different because probably most of the condos get rent out in tourist spots like Hawaii.
May 20, 2013 4:58AM
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stability in a neighborhood is it's essence.  having rentals in a neighborhood undermine this.  it's better to have families in an area so they become true neighborhoods where people know and look out for each other.
May 20, 2013 4:45AM
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You treat the problem (noisy frat parties, beer cans, etc) instead of making everyone who has a short tem rentalsuffer.  What if the frat parties happened at a house that was being rented out long term?  Would they just let it go then? 

 

 

May 20, 2013 4:40AM
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Yes,  You should be able to rent out your home, of course-- it is yours and you can do as you see fit--- BUT, just as when you occupy the house-- loud noises and neighborhood disturbances caused by renters should also be your responsibility as it would be had these renters been your houseguests.  Some areas that have a periodic influx of visitors; but no long term need for a vast hotel system, need to have home owners rent out their homes-- just look at Augusta, Ga. and the Masters golf week-- where would you put up all of those visitors if home owners didn't rent their homes to many of them?.  This is just another issue of government-- at all levels, passing broad indifferent laws that affect everyone, rather than doing the more difficult act of disciplining the specific wrongdoers.
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About Teresa Mears

Teresa Mears

Teresa Mears is a veteran journalist who has been interested in houses since her father took her to tax auctions to carry the cash at age 10. A former editor of The Miami Herald's Home & Design section, she lives in South Florida where, in addition to writing about real estate, she publishes Miami on the Cheap to help her neighbors adjust to the loss of 60% of their property value.

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