Loading...
HomeMy WebLinkAbout07-14-16, Eaton, Vacation Rentals, Public Comment Are Bozeman Neighborhoods Threatened by Vacation Rentals? The only evidence of threat I have seen is references to problems in New York City and Amsterdam. I've seen no actual evidence of problems experienced in Bozeman, Mt. Large cities have many problems not in evidence in a small city in Mt. Does it really make sense to enact regulations to deal with problems that don't actually exist? Let's consider the downside to doing so. Cost: Out of pocket costs to Bozeman property owners of several hundred dollars a year. Business License; Conditional Use Permits; Impact Fees; Loss of opportunity: All residents in R-1 and R-2 neighborhoods would be precluded from participating in one of the sharing economy opportunities brought about by modern technology. It is not unusual for homeowners to make temporary use of their home as a vacation rental while they are out of town for extended periods. Home swaps by travelers have been used by travelers for many years. The result of a home swap would be a short term tenancy. Would that not be possible for Bozeman homeowners? Diminished appeal as a destination for travelers: For a small number of visitors the appeal of living in a nice home or apartment as opposed to the commercial nature of a hotel or motel has a great deal of appeal. A realistic meal-in option is attractive for some. As the world moves along the path to a sharing economy, is it a better community strategy to participate in that trend or fight it? Pointless bureaucracy: Any effort to regulate vacation rentals would inevitably require additional staff, space and rules. If there was a demonstrated need for this in Bozeman, then so be it. In the absence of that need all parties suffer except, perhaps, for those hired to do the administration. The alternative: Long term rentals are presented as the socially desirable alternative. But, are they? My understanding is that long term rental regulations allow up to 5 unrelated occupants and come under Montana Landlord Tenant laws. The consequence for a neighborhood can be very negative. A landlord seeking to maximize cash flow might well rent to 5 college students with 5 vehicles, a young person's energy level and maturity. Montana Landlord/Tenant laws protect all parties to the transaction, but not the neighborhood. A bad situation for the neighborhood may well be bad for the landlord as well, but take months to remedy. Vacation rental neighborhood advantages: Unlike long term rentals, the vacation rental market is closely monitored by the vacation rental vendors. Providers are screened as well as tenants. A landlord who misrepresents his property may well lose the income expected from an unhappy guest and the future opportunity to use the rental service. Prospective guests are screened before they are approved. At the end of the guest stay each party provides a critique of the other which become a part of the record. An unhappy landlord can make it difficult for a guest to make use of the rental service in the future. These aspects of the vacation rental services provide immediate feedback for all parties and tend to result in responsible actions by all parties without the need for government intervention. Any review of vacation rental opportunities in the area will make it clear that the properties tend to be very attractive and well maintained. They are a credit to the neighborhood and generally have less impact on the neighborhood than is the case with either owner-occupied or long term leased properties as the vacationers are in town to experience the wonderful amenities of Montana rather than hangout in the neighborhood. The lack of tenants during a high percentage of the year means there is no impact at all beyond that of another property tax generating residence that is not currently occupied. Will Bozeman be overrun by vacation rentals? For many reasons that's highly unlikely. The demand for vacation rentals tends to fall into a 4 month period, June, July, August and December. Investors expecting to clean up by investing in this market could be very disappointed. Many Bozeman visitors are in transit to other area destinations, Yellowstone Park and Big Sky for two. They may spend a day or two in town, but they may not. In either case they are not natural customers for vacation rentals and a one or two night visit is often not practical for the landlord. Heavy usage in four months or so of the year, even at vacation rental rates, will not provide sufficient revenue to justify an investment in area real estate. Interest in the community: It's hard to take this point seriously. Would we really like tourists to show up at a school board meeting? Should we be shutting down hotels a motels because their guests are enjoying the area and eating and drinking in the local restaurants and bars etc. instead of refereeing a little league game? Isn't the fact that vacation rental properties are owned by tax paying citizens of the community enough? The relevance of the experiences of large metropolitan areas such as New York. I would say there is virtually no relevance. New York has a 12 month tourist season. It also has about 8 million people which offers a level of anonymity that makes room for behaviors by all parties that would never happen in a small city in Montana. I think it's safe to say that many laws are necessary in such an environment that would offer no benefit to Bozeman. To summarize: City regulation of the vacation rental market would increase costs and decrease opportunities for Bozeman property owners when no actual need has been demonstrated. Problems in large metropolitan areas are at most a reason to pay attention to the sharing economy. If Bozeman is going to begin enacting ordinances to deal with problems experienced elsewhere and which may be a problem here someday we will all be spending way to many Monday nights at city hall.