Tossing The Entire Short-Term Rental Industry On Its Head
A weekend topic starting with Domain News in Australia. "Owners in Melbourne’s high-rise apartment towers are selling properties at a loss amid a tarnished reputation thanks to wild parties and crime. Some city and Docklands buildings are tarnished thanks to the sheer volume of short-stay apartments and what happens there, such as the confronting death of Laa Chol, 17, who was killed at a party in an Airbnb apartment in the EQ tower in the CBD."
"Landlords and vendors in the tower have been forced to reduce rents to lease properties in some cases, and vendors in the past 12 months have often sold at a loss. Nelson Alexander Docklands partner David Anderson agreed residents did not like having poorly managed short-stays in their buildings. 'We’re finding owner-occupiers moving into new developments can be a bit dismayed when they see people walking in and out all day with suitcases,' he said."
From Fox 4 now in Florida. "The Naples Area Board of Realtors reports that home sales in Collier County rose to 12.8% in April 2019 from the same time in 2018. This is despite a fear from realtors that potential home buyers might start looking elsewhere after county leaders decided in March to begin issuing warnings and fines to owners of some short-term rental homes. The decision was based on numerous noise complaints from homeowners living in neighborhoods with short-term rentals."
"'I think it made the entire market nervous, because even though we've converted to more of a year-round market, we still have a lot of the transient people that enjoy season,' said Naples realtor Tiffany McQuaid. 'The average sale price dropped to $340,000 from $360,000, which was last April's number.'"
From NBC San Diego in California. "A bill that could limit the availability of short-term rentals moved one step closer to becoming law, worrying some proponents of the richly-debated industry. Jonah Mechanic, President of Share San Diego and STVR property manager criticizes the bill's effectiveness, and says it does little to solve the region's affordable housing crisis like its authors claim it will."
"'These homes never have been affordable housing, and no matter what they never will be affordable housing,' he said."
"Brian Curry is among the long list of San Diegans cheering for AB 1731's passage. 'We're not just talking about the noise next door or the party next door that happens in Pacific Beach anyway, it's Pacific Beach,' Curry said. 'If it's a long term tenant, you can go next door you can talk to that tenant. If it's a visitor who's gone the next day, they're gone the next day.'"
From Pew Trusts. "Just a couple of days after a rowdy house party at a short-term rental property ended in gunfire in a residential neighborhood in Rocklin, California, near Sacramento, Erin Youman, a neighbor, approached the City Council at its regular meeting."
"'I’m concerned about the welfare of our families on Grove [Street], especially after what happened over the weekend. What’s the plan?' she asked. 'Can we have something stricter? I know it’s an Airbnb and people have their right to make money, but is there something we can do to make the environment a little more regulated? My family’s home is directly across the street from the Airbnb. We’re a little concerned.'"
"Oh, yes, responded Republican Mayor Joe Patterson, who said he had asked his staff to come up with some new rules in the next month or so. 'We’re all shaken by the incident that happened over there,' he said. Patterson was referring to the fracas in the wee hours of the morning, in which two people were shot and the alleged perpetrators sped off in a car, only to make an abrupt U-turn and fire more shots at the home on the way back, according to the Sacramento Bee."
"A number of violent incidents have been reported at short-term rentals around the country. Just this month, a shooting at a graduation party in Pittsburgh left two dead and one injured. Neighbors told WPXI news that the home is rented out regularly on Airbnb. In Nashville, Tennessee, police earlier this month said a guest went 'psycho' at a party and was arrested after she allegedly drank two bottles of wine and trashed a short-term rental house, the Tennessean reported."
From West Hawaii Today. "The Honolulu City Council voted unanimously Monday to impose stiffer fines and harsher regulations on Oahu’s vacation rentals, tossing the entire short-term rental industry on the island on its head. The vote was 9-0, and Mayor Kirk Caldwell said that, subject to a usually routine legal review, he will sign the bill."
"As at previous meetings, proponents of vacation rentals warned of dire consequences to their businesses and the economy if either bill were to pass. They warned also that because they rely on the additional income of renting out their homes to make ends meet, they might need to sell their homes if either law were to pass."
"Kailua resident Lisa Marten said her house is surrounded by vacation rentals, which has had huge ramifications for her once 'established, middle-class kamaaina neighborhood.' Ten percent of the 140 houses in her subdivision are now vacations, she said. The situation has caused Enchanted Lake Elementary School to experience a huge drop in enrollment, which amounts to a significant loss in funding for the campus."
"But Ana Gilberti-Ippel said home-sharing is the only way her family is able to survive. The single mother rents out her Waikiki condominium unit while living elsewhere. 'This is my small family business that allows me to be a homeowner, finally, and live a modest and comfortable life.'"
The Globe and Mail in Canada. "Jae Lazar moves more than she would like. A single mother of two, she has lived in the District of Tofino, on Vancouver Island, for much of the past three decades, but was never in a position to buy a home. As with many renters in Tofino, Ms. Lazar has bounced around from home to home, given that many landlords rent to vacationers during the peak summer travel season."
"It got worse, Ms. Lazar said, 'once the Airbnb thing took off.' Over the past five years, she’s aware of at least five homes where she once lived that were later rented to vacationers, including on Airbnb."
"The McGill report found that commercial operators, or those who manage multiple listings, play an outsize role in Canada’s Airbnb market, generating nearly half of total revenue in 2018. Prince Edward County, about three hours east of Toronto, is seeing this trend play out. Mayor Steve Ferguson said speculators are 'going on shopping sprees' for up to four properties at a time 'with the sole intent of converting them to short-term accommodation.'"
"Beyond housing supply, he worries about short-term rentals changing the fabric of a community. 'The net effect is that entire neighbourhoods [in Prince Edward County] were going dark, because houses and properties would be in full use from the May 24 weekend to Thanksgiving, and then … kaboom, there’s nothing going on.'"