According to the 2016 NAR Investment and Vacation Home Buyers Survey, most respondents purchased a vacation property for personal use, but, of investment buyers, 50% purchased with the intent of renting to others. Renting out a vacation home can offset the costs of this investment until retirement. But what happens when a community acts to restrict short-term rentals?
None at this time.
What is the fundamental issue?
Many localities in areas across the country are considering or adopting ordinances that limit or prevent the ability of property owners to rent out properties on a short-term basis. The dynamics of this issue are complex. The infringement upon property rights is a common theme when local governments limit the use of property. Property ownership includes the right to gain income from property; whereas local governments are granted the legal authority to regulate land use within their jurisdiction by police powers and/or zoning regulations. The natural complexities of short-term rentals also create a division of positions among NAR’s membership.
I am a real estate professional. What does this mean for my business?
Rental property especially in vacation destinations may become less desirable to buyers and investors if restrictions are placed upon the amount of time property may be rented or short-term rentals are banned all together.
NAR has not adopted an official position on this issue; however, state and local REALTOR®associations may adopt official positions for short-term rental ordinances and/or laws.
There are no federal legislative or regulatory proposals.
State and Local Issues Policy Committee
We've already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require a password.
Short-Term Rental Conundrum
A Grander Vision for Short-Term Rentals, (REALTOR® Magazine, Mar. 2017).
How Airbnb Is Spurring Innovation In Luxury Travel, (Time, Mar. 28, 2017).
The Airbnb Factor, (REALTOR® Magazine, Jan. 2016)
The Next Property Rights Frontier, (REALTOR® AE, Oct. 20, 2015)
How Airbnb Combats Middle Class Income Stagnation, (Gene Sperling for AirBNB, Jun. 2015)
Do Airbnb-style short-term rentals destroy neighborhoods — or save them?, (Uptown Messenger, Jan. 15, 2015)
The Basics of Legal Short-Term Rentals, (Curbed Chicago, Apr. 5, 2013).
Win, Lose, Compromise
Chattanooga may establish special district for short-term vacation rentals, (Times Free Press, Mar. 29, 2017).
Short-term rental rule-breaker? Doral is cracking down, (Miami Herald, Mar. 28, 2017).
Inside New Orleans short-term rental applications, (The New Orleans Advocate, Mar. 24, 2017).
How To Save Airbnb From Local Governments, (Forbes Opinion, Feb. 1, 2017).
Airbnb Is Crashing the Neighborhood, (REALTOR® Magazine, Dec. 2015)
Articles, Surveys & More From NAR
2016 NAR Investment and Vacation Home Buyers Survey, (National Association of REALTORS®, 2016).
Residential Rentals: The Housing Market, Regulations, and Property Rights, (Robinson & Cole LLP, prepared for the National Association of REALTORS®, Oct. 14, 2015).
Websites & Other Resources
Learn About the Short-Term Rental Industry
Short Term Rental Advocacy Center — The Short Term Rental Advocacy Center (STRAC) was created by Airbnb, HomeAway, TripAdvisor, and FlipKey to engage with policymakers on behalf of community members. STRAC has several local chapters across the U.S., and educates communities on short term rental best practices and ways to get involved.
Protect Vacation Rentals — A collection of articles posted by "professionals against the legislation banning short-term rentals in New York City". See this site for articles, legislation, and more with a New York focus.
Community from HomeAway — HomeAway (www.homeaway.com) connects travelers with short-term rental properties, and Community from HomeAway is a member-driven site with topic forums, resources, groups, and blogs for both travelers and property managers.
Locate Short-Term Rental Listings
Rentmix.com — aggregates vacation and short-term rental listings from several sources (AirBnB, HomeAway, and FlipKey) and shows listings on a full-screen map. For a bit more information on Rentmix.com, see this AGBeat article.
Sales Tax Formulas for Vacation Rentals, Community from HomeAway
Sales Tax Requirements for Vacation Rental Homes, Community from HomeAway
State Sales Tax Offices, Community from HomeAway
* Please check with local government in your rental property area for information on permits, taxation, and regulations.
The following eBooks and digital audiobooks are available to NAR members:
How a Second Home Can Be Your Best Investment (Adobe eReader)
The Real Estate Investor's Tax Strategy Guide (Adobe eReader, Kindle)
Buying a Second Home: Income, Getaway or Retirement (Adobe eReader)
Complete Guide to Investing in Rental Properties (Adobe eReader)
How a Second Home Can be Your Best Investment (Adobe eReader)
How to Succeed and Make Money with Your First Rental House (Kindle, Adobe eReader)
Leases & Rental Agreements (Adobe eReader)
Second Homes for Dummies® (Kindle, Adobe eReader)
The Unofficial Guide to Managing Rental Property (Adobe eReader)
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