This is an item in our Local Government Toolkit.
When traveling, many residents in the city or county you represent choose to stay in short-term rentals offered on Airbnb, VRBO, etc. Similarly, some residents in your jurisdiction may choose to rent out their property (or a portion of it) to those who wish to visit Utah.
Regarding the regulation of short-term rentals, our primary recommendation is to avoid banning them in residential areas. If hosts can operate their rentals responsibly, avoiding issues like party houses or other nuisances, they should have the freedom to do so.
To prevent and address potential nuisances such as parties, noise, and parking issues, we recommend crafting an ordinance that provides clarity for short-term rental operators, guests, and neighbors.
For any jurisdiction choosing to ban or limit short-term rentals on the basis of their effect on the housing market, our recommendation is to consider the following:
- Any positive effects on the housing crisis would be temporary. The reason is simple — we can increase supply by building more housing every year, but there’s only so many short-term rentals to convert.
- Banning short-term rentals will reduce the tax base of your jurisdiction — both because short-term rentals are required to pay sales tax to your jurisdiction and because the visitors themselves patronize local businesses.
- Many homeowners rely on the extra income from short-term rentals to make ends meet, and a ban would remove this financial support, potentially causing economic strain on these individuals and families.
Are you a local elected official and interested in chatting with us more about this topic? Please reach out to us at localgovt@libertas.institute—we’d love to chat!
Resources:
Op-eds and Articles:
Are Airbnb and VRBO To Blame for Utah’s Housing Crisis?
Relevant Libertas Work:
- 2017 SB 253 | Libertas Bill Article
