HOME SHARING vs SHORT TERM RENTALS
Home Sharing is when the actual resident of a residential property offers it for lodging to paying guests. After all, if it’s not your actual home it’s not sharing, it’s just an investment property. Home Sharing is often a “Mom & Pop” situation that offers spare rooms in a home while the resident is present, or the “whole house” for less than 183 days per year (otherwise it would not be the actual residence of the operator).
We support Home Sharing as it provides “supplemental income” to the resident and has a minor impact on the surrounding area since:
- There is an actual resident associated with the property;
- The resident is actually present in the home to supervise guests, or;
- The resident is fairly particular about guests as they will be staying in their actual home,
- The resident is unlikely to “pack the house” with a large number of guests, and;
- The rental activity is offered on a part-time or occasional basis to guests.
Online platforms (Airbnb, VRBO, etc) like to emphasize the “Mom & Pop” aspects of Home Sharing as a shield against complaints about absentee and corporate investors operating STRs. However, in several Arizona communities less than 10% of listings are true Home Sharing and over 90% are investor owned or “whole house rentals”!! It’s not “Mom & Pop” anymore, it’s about corporate investors invading residential neighborhoods.
Short Term Rentals (STRs), Vacation Rental Properties (VRPs) or Whole House Rentals (WHRs) are typically:
- Operated on a commercial basis for investment returns
- Owned by absentee investors
- Offered for rent full time throughout the year
- Rented for less than 30 consecutive days – by definition in Arizona this makes them “transient lodging” not residential
- Often managed by third parties
- Often abuse the “unlimited occupancy” provided by SB 1350 with large numbers of guests
- Often part of a “mini-chain” of multiple properties owned or managed by the same investor. 1/3 of all listings are for operators with 25 units or more!
- Not a true residence to anyone, not a true neighbor to anyone – but located in residential neighborhoods
- More than 80% of Airbnb revenues (not Home Sharing)
- More than 90% of listings in several Arizona communities
STRs are popular with guests and profitable for investors. However, they are clearly engaged in the commercial activity of providing transient lodging, belong in commercially zoned areas and should meet the same commercial codes and standards as other hotels.
SOME OF THE EFFECTS OF STRs on the NEIGHBORHOOD
STRs belong in commercial areas, NOT residential areas because:
STRs are worse than having a hotel next door since there is NO occupancy limit and NO on-site management or staff to monitor and control the behavior, noise, parking or other safety and nuisance issues of their transient guests.
The revolving door of complete strangers, unsupervised transients coming and going at all hours is totally at odds with the settled nature of a residential neighborhood. Residents must remain on guard and on edge about the transients’ behavior, dreading what the next unknown group of strangers might bring to the area.
STRs degrade residential neighborhoods while the benefits go to investors and guests. Guests get to “live like a local” as the constant flow of transients ruins the local character of the area. STRs are cheaper than hotels and guests cook at home, so transients save money instead of supporting the community.
Investors make above average returns by charging rates that compete with hotels while having much lower costs for staff, overhead and operating expenses. Investors make big returns while the neighborhood endures noise, nuisance, anxiety and red cups in their front yard. STRs are like polluters, making big money while poisoning the environment.
HOME SHARING IS COMPATIBLE WITH RESIDENTIAL NEIGHBORHOODS.
STRs ARE COMMERCIAL OPERATIONS THAT BELONG IN COMMERCIAL AREAS.