Preference for In-Laws as Neighbors Outweighs Airbnb Rentals Among Majority of U.S. Citizens
The market for short-term rentals, such as Airbnb, is projected to hit $35.7 billion this year and top $80 billion by 2033, according to industry reports. However, the impact of short-term rentals on homeowners and their neighbors can be complex and multifaceted.
For homeowners, the potential benefits of short-term rentals are clear. With the flexibility to charge per night and the ability to cater to travelers seeking a "local" experience, short-term rentals can offer higher rental income compared to long-term renting, particularly in desirable locations. Moreover, homeowners can use their properties personally when they are not rented.
However, there are also drawbacks. The higher upfront furnishing and ongoing maintenance costs associated with short-term rentals can be a significant burden, especially given the increased wear and tear from more frequent guest turnover. Income variability and uncertainty are also concerns, as bookings depend on market demand and seasonality. Additionally, homeowners must actively manage guest screening and potential property issues.
From the neighbors' perspective, short-term rentals can disrupt community tranquility due to frequent guest turnover, noise, and possible disrespectful behavior from visitors. This can lead to complaints and concerns over security and the changing character of residential neighborhoods. While short-term rental guests spend an average of $1,722 per trip, money that goes directly to local restaurants, shops, and entertainment services, the disruption to the community can outweigh the economic benefits for some.
The trade-offs between the benefits and drawbacks of short-term rentals highlight why regulations and neighborhood attitudes towards them vary widely. Dr. Shelton Weeks, the Lucas Professor of Real Estate at Florida Gulf Coast University, believes that the presence of investors seeking to purchase properties for use as short-term rentals is often viewed as unwanted competition for traditional buyers.
Regulations regarding short-term rentals also vary significantly across the United States. In Santa Fe, New Mexico, only one short-term rental license is issued every 200 feet, while in New York City, owners can't rent out an entire unit unless they live in it full time. In San Diego County, STR licenses are awarded by lottery or tied to housing availability metrics in a specific zone.
Despite the potential for increased income, many homeowners are hesitant to become short-term rental hosts. A recent study found that about 44% of homeowners say they'd be concerned if they learned their neighbor was operating an Airbnb. Moreover, a survey revealed that nearly half of the respondents believe short-term rentals will negatively impact their neighborhood's housing market.
However, some homeowners have found success as short-term rental hosts. Mark Sanchez, founder of Gator Rated, introduces himself to neighbors and gives them his phone number for any issues. He sets clear expectations for guests before they check in and sends them a one-minute video to understand the area's tone and feel. By taking a proactive approach to managing his short-term rental, Sanchez has been able to maintain good relationships with his neighbors and run a successful business.
In conclusion, the decision to become a short-term rental host is a complex one that requires careful consideration of the potential benefits and drawbacks. For some homeowners, the increased income and flexibility offered by short-term rentals may outweigh the costs, while for others, the disruption to the community and increased responsibilities may be too much to bear. As the market for short-term rentals continues to grow, it will be important for homeowners, neighbors, and policymakers to carefully consider the impact of these businesses on communities across the United States.
- Homeowners can optimize their home-and-garden decor for short-term rentals to attract travelers seeking an authentic local experience, potentially increasing their income.
- The controversy over short-term rentals in home-and-garden settings persists, as some neighbors feel the disruption from frequent guest turnover might outweigh the economic benefits the businesses bring to the community.
