Letter to the editor: Short-term rental restrictions won’t solve anything | SummitDaily.com

Letter to the editor: Short-term rental restrictions won’t solve anything

Jeannette Thompson

If we limit short-term rental applications, why do we believe homeowners will react by renting their homes to locals?

The common misnomer is that short-term renting is a financial windfall. It isn’t true. The expenses for running a short-term rental, combined with the uncertainty of vacancy rates, make relying on short-term rental income fairly insecure.

Our clients aren’t purchasing an investment. They are buying a lifestyle in the form of a vacation home. They use short-term rent to pay their HOAs, taxes and some maintenance. They almost never break even if they have a mortgage. Most of our second-home owners see renting as a bonus and not a necessity.

They want to use their vacation home with their family and friends. This is why they purchased the home in the first place. How would it benefit them if they rented to a local for 12 months? They would never get to use it. They wouldn’t make enough money to break even at market rate rents.

And how many locals would it take to pay market rate in a single-family home at $1,200-plus per room? Are we also considering capping rent rates on these new long-term rentals?

To believe that going down this road will end with homeowners renting to locals, we must also believe that they will be amicable to never using their family vacation home and operating in the red every month with no benefit.

It’s never going to happen. The majority of these homeowners will stop short-term renting their homes and use them more for their families.

We have a terrible local housing problem that hurts all of us, including our businesses, our friends and our families. Unfortunately, this plan isn’t going to solve anything.

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