Summit Daily letters: Supply, demand will curb surge of short-term rentals
December 19, 2017
Supple, demand will curb surge of short-term rentals
Re: "Summit County considering regulations for Airbnb and rest of short-term rental industry." (Summit Daily News, Dec. 15)
In my opinion, the surge in short-term rental properties will be self-correcting. Increased supply with flat demand will push down occupancy and the anticipated profits to the homeowners will not be realized. I think by 2019, we will see that many units currently in the short-term market will be converted to long-term rentals, which will help with our employee housing shortage.
As a Realtor, I have done dozens of financial projections for potential real estate investors. Short-term rental profits are only minimally greater than long-term rental profits, but require much more effort and risk by the property owner. Any professional property manager can attest that short-term rentals are a lot of work!
Summit County can speed up this process by enforcing the collection of the sales taxes that are due, but uncollected. The failure to collect these sales taxes forces legitimate, tax collecting, rental properties to compete at a disadvantage. If there are 5,100 short term properties and 4,700 are not paying sales taxes, I estimate the lost revenue to Summit County in the order of $1.7 million per year!
Many resort towns in Colorado and elsewhere have increased their sales tax revenue by better enforcement of the current sales tax laws, and so could Summit County.
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A Christmas wrap alternative
Re: Eartha Steward's Friday column, "The green way to dispose of wrapping, tissue paper trash."
The Family Intercultural Resource Center has an alternate solution — don't use it to begin with! In addition to the popular tuxedo wine gift bags, fabric shopping bags, and many other clever items, there are now available fabric gift bags of varying sizes for bulky items, large hard-to-wrap gifts, several small gifts — mini Santa Sacks, so to say. These will definitely be reused in the future — it has always been fun to see recycled wrapping paper come back by at a later occasion. These inexpensive bags are made by volunteers from donated fabric so all proceeds go to support the local assistance programs provided by FIRC. The shop is located in the La Cima Mall in Dillon. Staffed by volunteers, hours and contact numbers are posted on the door. Anita Overmeyer, FIRC representative, can be reached at 970-262-3888. Happy Holidays!