Letter to the Editor: Limiting short-term rental applications
If we limit short-term rental applications, why do we believe that Homeowners will react by renting their homes to locals?
The common misnomer is that short-term renting is a financial windfall. It isn’t true. The expenses for running a short-term rental, combined with the
uncertainty of vacancy rates make relying on short-term rental income fairly insecure.
Our clients aren’t purchasing an investment. They are buying a lifestyle in the form of a vacation home. They use short-term rent to pay their HOAs, taxes and some maintenance. They almost never break even if they have a mortgage. Most of our second homeowners see renting as a bonus and not a necessity.
They want to use their vacation home with their family and friends. This is why they purchased the home in the first place.
How would it benefit them if they rented to a local for 12 months? They would never get to use it. They wouldn’t make enough money to break even at market rate rents.
And how many locals would it take to pay market rate in a single family home at $1200+/room? Are we also considering capping rent rates on these new long term rentals?
So, again…to believe that going down this road will end with homeowners
renting to locals, we must also believe that they will be amicable to:
a) Never using their family vacation home
b) Operating in the red every month with no benefit
It’s never going to happen. The majority of these homeowners will stop
short-term renting their homes and use them more for their families.
We have a terrible local housing problem which hurts all of us…including our businesses, our friends and our families. Unfortunately, in my opinion, this plan isn’t going to solve anything.