With the rise of vacation rental sites like Airbnb and VRBO, many neighborhoods are starting to question their benefits and disadvantages. As HOA boards and community groups decide on the future of vacation rental regulations for their communities, it’s impossible to overlook the advantages and disadvantages of allowing them in a neighborhood. So, is it good or bad for businesses to allow vacation rentals?
The Benefits of Vacation Rentals
Overall, short-term rentals can bring a positive economic impact to a community. First of all, they’re getting additional revenue through taxes. Landlords are bringing in extra income and feel the need to maintain their properties. And they will spend their money on local businesses.
For many cities, short-term rentals attract more tourists. In this case, HOAs and homeowners can benefit from government incentives and tax cuts designed to stimulate the economy and bring in more tourists to the area.
The Downsides of Vacation Rentals
Sometimes, short-term rentals can bring the wrong kind of crowds to a neighborhood. There have been several instances of partying, noises, and complaints about trash and parking issues in communities that allow vacation-style rentals. This also makes neighbors worry about the character of their community, as they might shift from a family-friendly to a partying environment.
For the HOAs and governing community bodies, short-term rentals come with many risks and liabilities to the association. It’s tricky to navigate how to handle disruptive renters and budget for how much it will cost the association to allow these types of rents.
When it comes down to it, short-term rentals can be good for neighborhoods when done correctly. It’s the HOA’s job to set standards, rules, and regulations to be followed by landlords and renters to preserve the community’s interest. Short-term rentals can bring new life and buzz to neighborhoods and help keep them on the market as desirable communities. This is a decision that needs to consider most of the community’s members and everyone’s interests. When done right, it’s a balancing act that can benefit everyone involved.
Geraldine Orentas is a writer in partnership with vacation rental accounting service, Ximplifi.