HomeMy WebLinkAbout08-04-23 Public Comment - L. Orr - Short term Rentals - Commission meeting Aug 8,2023From:Lisa
To:Agenda
Subject:[EXTERNAL]Public Comment- Short term Rentals - Commission meeting Aug 8,2023
Date:Friday, August 4, 2023 12:52:50 PM
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Dear City of Bozeman Commission,
I’m writing regarding the planning meeting for STR’s occurring on August 8th. I have worked
in the short term rental industry for over 18 years and quite frankly am concerned that
further restrictions or changes to the STR rules in Bozeman may jeopardize my job. I know
first hand that STR’s have many positive impacts on the community. They create good paying
jobs as well as increase financial well-being and peace of mind for property owners.
While I recognize the need for the city to explore affordable housing solutions in our
community, I would ask that you consider a less intrusive means than compromising small
businesses and hardworking employees.
I currently represent over 100 property owners across southwest Montana. I’ve conducted
interviews with most of these homeowners and the general consensus is that the property
will sit vacant for long periods between owners visits. Banning STR’s will NOT increase the
supply of rental housing in Bozeman, but will actually have the opposite effect.
My nephew’s club baseball team, traveling from Billings, had to cancel their Bozeman
tournament this summer due to the limited availability of STR’s in the city limits and the
exorbitant nightly rates for motel rooms. The parents could not afford to bring them here.
Bozeman’s local shops and restaurants depend on tourists to survive. If we take affordable
housing options away from the tourists, they will go elsewhere.
The last point that I would like to make is that the financial benefits of owning an STR in the
community is not widely different than that of owning a long term rental. For example, a
three- bedroom home in a typical Bozeman neighborhood rents for $3,400 a month would
make $40,800 a year and the tenant would pay all of the utilities. That same property might
rent for an average rate of $300 a night as a short term rental. Typical occupancy rates for
Type 3 Bozeman STR’s seem to be about 60 percent. If that same home rented for 216
nights at $300 nightly, it would generate $64,800 in gross rents. Take into consideration that
a property manager is likely receiving 20-30% of this rent as their fee and the gross is
reduced to just $48,600. That $7,800 gap is further diminished as the property owner is
paying for power, water, trash service, internet etc., adding roughly another $300 a month in
expenses. They are paying additional costs for an STR homeowners insurance policy and
general liability insurance, as well as additional costs for licensing and fire inspections. They
face the huge expense of furnishing the property and regularly replacing linens, towels, pots,
pans, and other household items. The gap quickly closes between what can be generated
long- term versus short term. Most clients I serve don’t choose an STR for the ROI. They
choose to have an STR because they want to use the home personally or they want the
peace of mind that the property is changing hands and being inspected by their property
manager on a very regular basis. This was also revealed by the focus group participants on
the January 18th, 2023 meeting at City Hall.
Please consider the people who will be harmed by further bans and restrictions.
Thank you for your time.
Lisa Orr / Licensed Property Manager and Office Manager
Mountain Home Montana Vacation RentalsPhone: 406.586.45891102 W. Babcock, Bozeman, Montana 59718 lisa@mountain-home.com
www.mountain-home.com