This document discusses the benefits of short-term rentals (STRs) for travelers, homeowners, and communities. It notes that STRs provide affordable accommodations for families and large groups that allow them to immerse themselves in local culture. They also provide supplemental income for homeowners and incentives to maintain properties. However, regulations have been inconsistent across markets, and attempts to ban STRs have pushed them underground and reduced tax revenue. The document argues that well-regulated STRs that respect property rights can benefit local economies and communities.

1. Welcome to
Tea with
Brittany Lea
Presented By:

2. With: Matt Curtis of the VRMA

3. Short-term Rentals Provide Long-Term Benefits To Travelers,
Homeowners, and Communities Alike
Travelers
• Responds to the demand from families and large groups for
spacious accommodations at an affordable price
• Vacation travelers can fully immerse themselves in the local
culture
Homeowners • Opportunity to earn supplemental income when property is not in
use
• Sixty-two percent of homeowners rely on income from short-term
rentals to pay for household improvements
Communities • Incentives to maintain homes that typically sit vacant
• Patronage of neighborhood businesses brings benefits of
tourism to areas that lack hotels
• New employment opportunities
Benefits
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4. Short-term Rentals (STRs) Provide An Alternative For Families
And Extended-Stay Travelers
HeadingPrimary Rentals
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• Bringing travelers into often-
underserved communities,
homeowners rent out their primary
or secondary homes on a short-
term basis
• On average, travelers spend 6.2
days in a STR and frequent local
boutiques and restaurants
• 54 percent of homeowners earn
enough STR income to cover 75
percent of their mortgage
payments
Short-Term Rentals
What Are They? Who Uses Them?
• Grandparents rented STR in
Chicago, IL to attend their
grandson's graduation ceremony
• Students rented STR in San
Francisco, CA while presenting at
research symposium
• Family rented STR during annual
vacation to Orlando, FL
• Spouse of surgery patient rented
STR near medical center in
Boston, MA
• Business conference attendees
rented STR in Philadelphia, PA

5. New Technology Has Brought Short-Term Rentals Into The
Mainstream, Boosting Safety And Availability
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Vacation Rentals In The Past… …Vacation Rentals Today
Concentrated in classifieds sections
Easy-to-use platforms with built-
in maps of cities and traveler
reviews
Limited availability of short-term
rentals, forcing families to pay for
multiple hotel rooms
Growth of Internet led to influx of
short-term rentals, expanding
options for travelers
Licensing, reviews and occupancy
requirements give travelers and
neighbors peace of mind
Safety and conditions of rentals
unknown
Tourist hotspots restricted to city
centers
Diverse array of neighborhoods
reaping economic benefits of
tourism

6. The Lack Of A Formalized State-Level Regulatory Approach
For Short-Term Rentals Has Hurt Travelers And Homeowners
Solution: Coordinated state-level policies that respect rights of homeowners,
expand choice for travelers, protect neighbors, and spur local business
No formalized regulatory approach to STRs creates
two main challenges, specifically…
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Fragmentation Across Markets
• Fragmented and inconsistent
movements, sparking some
communities to regulate and others
to prohibit STRs
• Uncertainty for homeowners and
travelers regarding local rules
Lost Tax Revenue For Governments
• High opportunity costs, as STR
owners provide valuable
contributions to city funds through
lodging taxes
• Concentrates tourism in hotspots,
neglecting neighborhoods that
stand to benefit from STR

7. Attempts To Address Short-Term Rentals With Regulatory
Measures Should Adhere To Certain Core Tenets
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Work with new traveler trends and desires, not against them1
Respect property rights of all owners equally2
• If policymakers impose bans on secondary rentals, the market will
return underground, eliminating any potential tax revenue
• Polls suggest residents favor smart short-term rental regulation,
not prohibition
• Policymakers should not bifurcate primary and secondary
properties
• Residential zones should maintain ordinances limiting disruptive
active while rewarding responsible renters
Acknowledge that safety of STRs has increased dramatically3

8. • Acknowledged STRs as a driver
of economic growth, underscoring
the role they play in bringing
travelers to underserved areas
• Imposed reasonable geographic
caps on STRs, whereas other cities
have banned the activity outright
• Did not bifurcate primary homes
and secondary homes
• Outlined licensing requirements
and mandated "good neighbor"
policies
Nashville, TN
Several Cities Have Already Implemented Legislation That
Could Serve As A Strong Model For Future Regulation
• Emphasized need to embrace
innovation to support local job
growth and to protect residential
rights
• Enacted tax collection policies
that guaranteed short-term renters
would contribute to local revenues
• Implemented short-term rental
registration process and called for
regular updates on status of rental
property
Galveston, TX
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9. Prohibitive Regulations Based On Circumstantial Evidence
Have Complicated Public Perception Of Short-Term Rentals
STRs are not
commercial entities;
rather, they afford
property owners the
chance to earn
supplemental income
on secondary homes.
Regulations that
inhibit the STR
industry only
succeed in hurting
residents, travelers,
and local businesses.
Potential Harm
Hotel
Requirements
Zoning Laws
Housing Stock
Liability
• High compliance costs (e.g.
infrastructure requirements) can
squeeze responsible property owners
out of the STR market
• Restrictive zoning laws that prohibit or
severely limit STRs can confine travelers
to certain areas
• Overregulation suppresses the growth of
housing, as the financial incentive to
construct is reduced
• STR bans inadvertently push STRs
underground, raising liability concerns
and squandering tax opportunities
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10. Disjointed Movements Across The Country Have Created
Uncertainty For Homeowners And Communities
Ohio
Seattle
Hood River, OR
Los Angeles
Arizona
Austin
San Diego
Denver
San Francisco
NYC
New Orleans
Chicago
Boston
Nashville
Charleston
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11. 11
Arizona STR Law (SB 1350)
• Prevents cities from creating
legislation that would ban the listing
and use of STRs
• Provides protections for both primary
and secondary rentals
• Adds to a broader initiative aimed at
promoting the sharing economy to
create jobs and economic growth
• Simplifies STR tax collection process
• Underscores the benefits of STRs for
local businesses
Pre-Emptive Efforts To Address The Growth Of STRs Can
Lead To Fair Legislation That Appeases All Stakeholders

12. Moving Forward, Cities Must Respond To STR Movements
With Policies That Respect The Needs Of All Stakeholders
• TEXT
Travelers, especially
families, need access to
affordable accommodations
located in authentic settings
Local businesses need
opportunities to expand their
customer base while
continuing to provide high-
quality products to local
residents
Residents need
reassurance that STRs
pose no threats to their
well-being and to the fabric
of their communities
Homeowners need a firm
guarantee that any
regulations will protect
their property rights
When well-
regulated, STRs
can bolster local
economies and
strengthen
community ties
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