Short-Term Rentals Trend Upward, But At What Cost to Neighborhoods?

Dated: November 2 2021

Views: 271

short-term rentals

Whether a given neighborhood is seeing more intergenerational families, single people living with roommates, or an uptick in short-term rentals, the accessory dwelling unit model (ADU) is a home addition with some staying power. Adding or renovating toward a complete bedroom, bathroom, and even kitchenette in a separate area has become a hot choice, according to HomeLight’s End of Year Report. (HomeLight.com is an online real estate referral company based in Scottsdale, AZ.)

But with lots of residential ADUs come, in many areas, an uptick in these short-term rentals, often organized via sites like HomeAway, VRBO, and AirBnB. In areas where this kind of rental is legal, residents find mixed blessings. There are ways, however, to have a strong short-term rental market without the nuisances.

Benefits From an Uptick in Short-Term Rentals

Short-term rentals grow in popularity because they can be a very low barrier to entry method for getting into the rental market since the sites make it easy to toggle one’s space availability and set a rate. People like the convenience and amenities that many short-term rental properties offer, and as a result, areas that already experience some natural tourism, such as college towns, get an added boost.

It’s positive to be able to supplement income and leverage extra home space for income, and having plenty of rentals available can actually make an area more of a destination than it might have been otherwise.

Downsides for Property Values If Out of Check

Residents of an area with a lot of short-term rentals occasionally see issues like noise complaints. Too many short-term rentals can also throw off the balance of street parking availability, such as if homes that previously had 1 or 2 cars at them now occasionally have 3 or more. In general, renters will not have the investment in a property’s upkeep that a primary-residence owner will feel, and if short-term rentals are managed at a minimum level rather than with care, a whole neighborhood can look more rundown because of being primarily full of short-term rentals.

Good Policies and Well-Managed Rentals Find a Happy Medium

Many cities and towns that allow short-term rentals on sites like VRBO are now creating policies for the registration and management of said rentals. Requiring that they include off-street parking, keeping a record of noise complaints and fining the property owners, and citing issues like overly long grass can all be part of the solution for keeping a neighborhood with many short-term rentals looking good and functioning well.

At the same time, short-term rentals actually thrive better for the property owners if the whole neighborhood is well-maintained. Property owners who choose to get into short-term rentals will build a better relationship with their rental property neighbors if they choose to keep a well-managed property and respond promptly to any complaints related to the renters. It just makes sense for that relationship to be strong and communicative, whether you’re renting an ADU on your primary residence or a separate dwelling unit. By focusing on common-sense responsibility to your neighbors, your own rental property can avoid alienating the neighbors when buying or selling a home where you’d like to make a nice side income. 



Blog author image

Michael Pallares

After years of working in the field of communications (from newspaper reporter/editor, creative services director, radio talk show host and freelance columnist), I've found a career path that allows m....

Latest Blog Posts

Your Top 5 Real Estate Questions Answered

 As the calendar page flips over to the last month of 2021, I wanted to hit pause to look back at the top 5 real estate questions my team and I have received from our clients, family, and

Read More

Short-Term Rentals Trend Upward, But At What Cost to Neighborhoods?

Whether a given neighborhood is seeing more intergenerational families, single people living with roommates, or an uptick in short-term rentals, the accessory dwelling unit model (ADU) is a home

Read More

What's In Store for Home Sellers & Home Buyers in 2022

Is it too early to say good bye and good riddance to the 2021 housing market? Perhaps. But as we officially enter the fall/winter housing market, this real estate agent cannot wait to see this year

Read More

Will This Year's Backyard Upgrades Hold Their Value in 2022?

What do you do when you’re stuck at home and you’ve grown tired of looking at the same four walls? You do renovations! You could stick to indoor renovations, but many homeowners rolled

Read More