How to Regulate Short-Term Vacation Rentals More Efficiently
Thanks to sites like Airbnb and VRBO, short-term vacation rentals are everywhere these days. While there is plenty to love about short-term rentals (STRs) – for both citizens and cities – the dramatic increase in their number has left many municipalities struggling to keep pace with regulating them. Here’s a look at the good and the bad of STRs, as well as a few tips for how to better keep tabs on them.
Short-term vacation rentals can provide a boost to the local economy, but also have the potential to cause problems in the neighborhoods where they operate.
The Good: Increased Revenue
When operating within carefully enforced regulations, short-term vacation rentals can be a big boost to municipal governments and the local economy.
For municipalities, STRs create additional revenue streams on which they can collect taxes. Many cities require STR owners to register with a local government agency or obtain a business license, whose fees can generate additional revenue. For some cities with a large STR market, the revenue from taxes and fees is even enough to fund an additional position that can help enforce STR compliance!
Short-term vacation rentals can also help to boost the local economy. Especially for smaller towns with fewer lodging choices, STRs provide much-needed beds to accommodate visitors for seasonal tourism or major events. An increased capacity for tourism also results in increased spending at restaurants, bars, attractions and shops.
The Bad: Problem Homes, Lack of Education and More
Unfortunately, short-term rentals also have the potential to create a lot of problems for the communities they serve. The most obvious downside to STRs can be characterized by the “party house.” Short-term vacation rentals are often rented for large events, which causes an influx of disruptive behavior to otherwise quiet communities. Hotels are purposely zoned away from neighborhoods to protect residents from issues with parking, traffic and noise, so when STRs operate in residential areas, it’s easy for problems to arise – and for code enforcement departments to work overtime sorting it all out. Further compounding the issue is that most violations happen after hours and by the time CEOs have sorted through voicemails, tracked down addresses and gone out to document the violations, the evidence has been swept away.
Another problem with short-term rentals is lack of education resulting in illegally operated properties. Most platforms that host STR listings don’t go out of their way to educate property owners on how to legally set their property up as a compliant STR, leaving clueless homeowners to figure out zoning codes and city requirements on their own. Most don’t bother, not necessarily out of spite but ignorance. Many property owners don’t know about the regulations until they come up against the wrong side of them, leaving the task of education in the hands of overworked code enforcement officers – and often code enforcement departments don’t have set processes in place to handle the education component.
Short-term rentals can create disturbances in neighborhoods such as influx of parking and noise violations.
Solve Short-Term Rental Problems with a Software Solution
One way that code enforcement departments can more efficiently manage problems with short-term vacation rentals – and make educating property owners much easier – is to invest in a software solution. Products like Comcate’s Code Enforcement Manager can help code enforcement officers struggling to keep pace with problematic STRs in several ways.
Easier Citizen Submissions: Often the first time a STR pops up on a code enforcement’s radar is when a neighbor reports a problem. Complaints made in the traditional way – phone calls, voicemails or even in-person – don’t provide citizens with a formal format to follow for their submission, which can result in critical details being left out, requiring additional follow-up from officers that increases the overall time to resolution for the case.
With Comcate’s Code Enforcement software, citizens file complaints through a form that prompts them to provide all the prudent information, saving CEOs the hassle of calling them back. The form also gives citizens the ability to upload pictures – making it easier to get photographic evidence of the violation that might otherwise be gone by the time officers arrive.
Easier Communication and Education with Property Owners: One of the trickiest parts of dealing with illegal STRs is how to best educate property owners and bring them willingly into compliance. Many owners don’t know they’ve done something wrong, so leading with leniency can produce more positive results. Especially for first-time offenders, focus on solving the problem, rather than punishing them. An informative letter filled with specifics like where and how to register their property and what date it needs to be done by can set expectations while establishing a dialogue.
Comcate’s Code Enforcement manager has notice-generation functionality that makes it easier for code enforcement officers to share information with property owners – without ever leaving the property. Pre-built notice templates can be customized on the spot then printed using a mobile printer for in-the-moment communication.
Geographic Tracking of Problem Properties: Many software solutions, including Comcate’s Code Enforcement Manager, support GIS integration. This feature provides code enforcement officers the ability to pull up a geographical map of short-term rentals in order to better pinpoint hot spots with a large number of violations for a better bird’s eye view of where communities in their cities are coming into conflict with STRs.
Centralized Knowledge Base with Built-in Reporting: Software solutions with property-specific tracking enabled by GIS integration can create a centralized bank of information. Not only does this provide greater visibility on problem houses – which is especially useful when it comes time to renew the license – but it protects against loss of historical information that accompanies department turnover. When employees leave, valuable historical information on properties often goes with them. With a software solution, you’ll never have to worry about that again.
Real Life Success: Lincoln City, OR
Comcate’s Code Enforcement Manager can help your municipality tackle problems associated with short-term rentals. But you don’t have to take our word for it! If you’re interested in seeing what a difference software can make for other municipalities struggling with this issue, we invite you to read Lincoln City, OR’s story.
After the city annexed a couple hundred acres containing homes built as investment rental properties, Lincoln City experienced an influx of issues related to STRs. With the help of Comcate’s Code Enforcement Manager, the city was able to more efficiently take citizen complaints, communicate with property owners to educate them on compliance, and effectively resolve issues.
Schedule a Meeting with Comcate Today!
Learn how Comcate can help make government delivery simple, and offer a modern digital experience to help you increase transparency, efficiency, and performance across your departments. If you have any questions about implementing our software, please fill out the form below or call us directly at (415) 632-1248.
RECENT BLOG POSTS
