There’s a lot of debate around rules and regulations surrounding short term rentals (STRs). As the shared-economy evolves there are many misconceptions about the legality, regulations and overall impact.
STRs aren’t all glamorous properties with rooftop decks, private pools and walk scores of 98. Some STRs aren’t legal - violating leases or breaking the law. And these violations aren’t just a headache or the result of antiquated rules, they have a serious impact on business, community and people.
From the tenant’s perspective: Think about it? You’ve worked hard, saved up a deposit, underwent some background checks and handed over ⅓ of your paycheck to live in a desirable apartment building. Why did you select this building? Why did you offer up three references and took a day off from work to move? Because it isn’t just a 568 square foot box with an oven and shower, this is your home. You selected this building because you want to be safe, have great amenities and know the other tenants are on a similar page.
Now imagine that there is a bi-weekly rotation of strangers entering the building with passcodes, they operate on vacation hours (late nights and lots of noise) and live it up in the communal areas. Units that usually bring two people to the patio have doubled the occupancy and you can’t get a table because short-term renters are using the space that has been promised to them.
Do you feel safer? Are you frustrated? Are you looking at different, more quiet buildings?
For the property management firm What about the people collecting the rent checks? If they are getting paid, why should it even matter? Well, for several reasons. First, it is their responsibility and liability to enforce any lease violations. It is also their job to uphold amenities, features, community or benefits that have been promised to tenants. If there are loud, short-term rentals and neighbors complain, it is their problem. If residences don’t recognize the constantly changing faces in the secure building, it is their problem. If units are damaged or there is more wear and tear, it is their unit to fix. And recall how you are looking at that quieter building? Well it means they need to put more time and energy into listing, turning over and renting the unit. Think that is just more money in their pocket? Wrong. Check out this formula and learn just how much it costs to turnover a unit . Not only does this cost more for the management firm, it also costs tenants. If passcodes or locks need to be changed more frequently, if security measures need to be increased or there is more wear and tear, that cost trickles down to tenants. Short term rentals add additional challenges in apartment buildings and communities for tenants and managers alike.