Overview

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?

Political Advocacy

Current Legislation/Regulation

None at this time.


In-Depth

Issue summary
NAR Federal Issues Tracker


Legislative Contact(s):

Adriann Murawski,
amurawski@realtors.org
202-383-1068

Russell Riggs,
rriggs@realtors.org
202-383-1259

Regulatory Contact(s):

Adriann Murawski,
amurawski@realtors.org
202-383-1068

Russell Riggs,
rriggs@realtors.org
202-383-1259

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 Policy:

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.

Legislative/Regulatory Status/Outlook

There are no federal legislative or regulatory proposals.

NAR Committee:

State and Local Issues Policy Committee

References

NAR Library & Archives has 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

Are Airbnbs Good for a Neighborhood? (REALTOR® Magazine, Jul. 8, 2019)

Vacation Rentals in Flagstaff: A Love Story? (Flagstaff Business News, Jul. 5, 2019)

With a Recession Looming, Short-Term Rentals Provide an Option for Multifamily Developers (Forbes, Jul. 3, 2019)

Short-Term Vacation Rentals Are All About Property Rights. But Whose? (Florida Phoenix, Apr. 12, 2019)

To Airbnb or to Not Airbnb? (REALTOR® Magazine, Jan. 31, 2019)

The Risks of Short-Term Vacation Renting (Hawaii Living, Jan. 17, 2019)

More Investors Plan to Cash in on Short-term Rental Trend (REALTOR® Magazine, Jul. 3, 2018)

Win, Lose, Compromise

Short-Term Vacation Rental Market Booming in Las Vegas Valley; Pushing Out Buyers (KVVU, Aug. 6, 2019)

To Airbnb or to Not Airbnb? (REALTOR® Magazine, Jan. 31, 2019)

2019 Short-Term Rental Industry Predictions (Short Term Rentalz, Oct. 26, 2018)

Airbnb Sues NYC, Says Law Infringes on Hosts’ Rights (REALTOR® Magazine, Aug. 27, 2018)

Airbnb Investment in Apartment Buildings Irks Tenants (REALTOR® Magazine, Aug. 16, 2018)

What’s the Short-Term Rental Problem? (Daily North Shore, Apr. 5, 2018)

Compliance

Tax Topic 415 - Renting Residential and Vacation Property (Internal Revenue Service, Aug. 1, 2019)

Short-Term Rental Laws in Major U.S. Cities (Updated July 2019) (2nd Address, Jul. 2019)

Are Short Term Rental Laws Constitutional? (FindLaw, Apr. 1, 2019)

Publication 527 (2017), Residential Rental Property (Internal Revenue Service, Jan. 16, 2019)

Mass. Targets Airbnb Rentals with New Law (REALTOR® Magazine, Jan. 2, 2019)

13 Places Cracking Down on Airbnb (Conde Nast Traveler, Dec. 13, 2018)

Airbnb Hosts Face Conundrum When It Comes to Insurance (San Francisco Chronicle, Mar. 24, 2018)

* Please check with local government in your rental property area for information on permits, taxation, and regulations.

Websites & Other Resources

2017 NAR Investment and Vacation Home Buyers Survey (National Association of REALTORS®, 2017)

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, in response to requests from owners, operators, and hosts who are seeking help to engage with policymakers that may be considering how formalizing fair and reasonable short-term rental regulations can responsibly foster this growing industry. STRAC is a project of the Travel Technology Association.

Vacation Rental Management Association (VRMA) — VRMA works worldwide on behalf of our manager and supplier members to advance the vacation rental industry through education, information, networking, research, and advocacy.

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.

eBooks

Buying a Second Home (eBook)

Create Killer Vacation Rental Property Photos (Kindle, eBook)

Vacation Rental Management 411 (Kindle, eBook)

Complete Guide to Investing in Rental Properties (Kindle, eBook)

The Complete Guide to Real Estate Finance for Investment Properties (Kindle, eBook)

How a Second Home Can Be Your Best Investment (Kindle, eBook)

How to Succeed and Make Money with Your First Rental House (eBook)

Leases & Rental Agreements (Kindle, eBook)

The Real Estate Investor's Tax Strategy Guide (Kindle, eBook)

The Second Homeowner’s Handbook: A Complete Guide for Vacation, Income, Retirement, and Investment (Kindle, eBook)


Have an idea for a real estate topic? Send us your suggestions.

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

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