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.

Some of the other issues that arise for debate are: 

Housing Availability and Affordability: Critics argue that short-term rentals reduce the availability of long-term rental housing, driving up rents and property prices. This can exacerbate housing shortages, particularly in popular tourist destinations.

Community Impact: Opponents claim that short-term rentals disrupt community cohesion and increase noise and traffic in residential neighborhoods. They also raise concerns about the loss of a sense of community and the displacement of long-term residents.

Economic Considerations: Proponents of short-term rentals highlight the economic benefits, including increased tourism revenue and supplemental income for property owners. They argue that short-term rentals can help homeowners afford their properties and stimulate local economies.

Regulation and Enforcement: There is ongoing debate about the appropriate level of regulation for short-term rentals. Some advocate for strict regulations to mitigate negative impacts, while others argue for more lenient rules to encourage economic benefits. Effective enforcement of these regulations is also a challenge.

Taxation: The issue of taxation is critical, with municipalities seeking to ensure that short-term rental operators pay their fair share of taxes. This includes transient occupancy taxes, which are typically levied on traditional hotels and lodging establishments.

Legal and Zoning Issues: There are legal challenges related to zoning laws and property rights. Some property owners argue that restrictions on short-term rentals infringe on their rights, while municipalities contend that they have the authority to regulate land use to protect community interests.

Health and Safety: Ensuring that short-term rentals meet health and safety standards is another concern. This includes issues like fire safety, building codes, and ensuring that guests are protected.

See References section for more information.

Short-Term Rental Restrictions Topics

Show more