Short-term vacation rentals caused controversy when they first came into existence a little over ten years ago. Since then, they have been expanding at an alarming pace. Key West condos provide a complete suite of solutions to help you identify and manage short-term vacation rentals within your community. Here are six ways short-term rental properties can impact your local communities.
- Positive Economic Impact
The positive economic impact of short-term rental properties can be significant for a local or regional economy in several ways. They can also provide additional income for cities through tax revenues. In addition, the short-term rental of vacation homes can provide economic benefits for the whole community. Guests will spend money on tourist amenities like bars, restaurants, and museums.
- We offer fewer long-term rentals
The scale at which short-term vacation rentals operate is constantly growing. It’s not limited to large urban areas.
The majority of short-term rental properties are located in residential areas. Tourists can use the space to rent short-term vacation accommodations, which is an example of how they are using up space that could have been used for living. This has led to decreased long-term housing stock in some locations. This effect is most evident in large cities such as San Francisco and New York, where affordable housing is a problem. Stories of tenants being evicted and later finding out that they were temporarily renting their apartments appear all over.
- Neighborhood Changes
Living next to a short-term vacation rental can cause problems that could affect your life. Most visitors only rent the accommodation for a few nights. Because of this, neighbors will see new people visiting the property every day, especially when there are many short-term vacation rentals nearby. Similar complaints about noise disturbance, parking issues, trash, and other problems continue to concern local governments.
Local residents are worried that the entry of short-term vacation rental units in their neighborhoods will affect their character and quality of life. In cities large and small, this has already led many to protest. The challenge for local governments is to regulate short-term vacation rentals in a way that preserves the neighborhood and respects the property rights of the homeowner.
- Tourism Activity has risen
Airbnb and other short-term rental platforms, such as Airbnb, effectively boost local tourism. With the low cost of these rentals, less well-known tourist destinations are now more attractive due to the availability of short-term vacation rental options.
- Traditional Lodging Partners in Unfair Terms
However, short-term rentals of vacation homes are seen as disruptive for the traditional lodging sector. Short-term rentals offer two distinct economic advantages to the hotel industry. Short-term rentals don’t need to pay staff and are not subject to regulations like hotels. This increase costs significantly. This allows short-term rentals to offer lower rates than traditional tourist accommodations. Additionally, short-term vacation rentals usually don’t have to pay tourist taxes. This is further enhancing the unequal market.
- Unrealized Tax Revenues
Local governments are losing out on millions of dollars because many cities do not tax short-term rental properties. Local governments can raise revenue through taxes and permits and business licenses by allowing or regulating short-term vacation rentals.
