this post was submitted on 12 May 2024
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I still think municipalities share a significant amount of blame here. They definitely could have at least limited vacation rental saturation, and didn't do anything.
I live in a ski town, and have been to city hall meetings on this issue. The overwhelming amount of attendees at these are vacation homeowners or their representatives, and the prevailing attitude is, "fuck the locals, our profit is at stake here." A number of owners have changed their primary residence to our town just to have more say that local long term renters. These meetings are held at 2pm, when locals are working. It's about as fucked as it can get. And when we've had a sympathetic council person, they're immediately recalled or replaced the following election cycle. It's a shitshow.
During COVID, when the Airbnb boom really took off, we had a 25% resident attrition rate. That's no typo; twenty five percent of our valley's residents had to leave town because they were priced out (about 5000 in a population of 20,000) because either rents skyrocketed, or the owners of their homes sold out from beneath them. These days, much of our local labor force commutes at least an hour into town. It has gotten a little better, and some have been able to moved back, but the damage is done.
Even for prospective buyers, like my wife and I, prices are outrageous. Our current home, which is valued around $600k, would have been $200k pre COVID. And this is solely because of Airbnb assholes.
My office regulates airbnbs for the city and it's very hard to do anything about it. None of the rental platforms will work with us - we've sent them about a million notices that they're collecting the wrong tax amount and they don't even bother to respond, and they just send a check every quarter but refuse to break it out by address/owner. They won't provide any data on what addresses are being rented, either. Apparently some other cities have successfully sued airbnb, but for a small city with a correspondingly small budget, that's an expense that's hard to justify to taxpayers.
We have some owners that are great - they get licensed right away, get their inspections done, no problem. Then there are other people who have done things like dig out their crawlspace themselves and turn it into non-conforming bedrooms with no egress windows - no permits or inspections, of course, and an engineer basically said the entire thing was in danger of collapsing any minute. Or the person who had a buddy do a bunch of unlicensed electrical work that was so bad the city couldn't even let the owner stay there until it was fixed. I honestly wouldn't stay in an airbnb now, having seen what I've seen - people will absolutely put renters at risk to make a buck. And we can go after them but only if we know it's happening.
I'd personally love it if rental platforms were forced to provide owner data to cities/states, and for cities to tax the shit out of rentals that aren't also owner-occupied, but I'm not in charge and the people with money have a vested interest in making sure that doesn't happen. It sucks.
I'm an activist writing a housing bill to get introduced to my state legislature. Part of it specifically addresses these platforms, but I don't know what's been tried against them yet. Any tips?
Unfortunately, I don't know too much - most of the contact has been initiated by our sales tax staff to whatever department handles tax collection on the company side, but from what they've told me, they just don't get a response. Our municipal code only allows us to go after owners if they fail to get licensed (and even that is a nightmare for us to try to do) but there's nothing about the actual companies.
It's kind of the wild west at the moment - the problem isn't evenly distributed, so there's not one catch-all solution. One of the mountain towns here said they have 700+ rentals and their official population is only like 500 people. We have <100 in a city of about 40k. It's still a problem here, but nowhere near as bad as ski towns have it. Most of the laws I've seen are aimed at the owners, not at the companies facilitating the rentals, and they range from things designed to just make sure someone's actually inspecting the rentals so no one dies all the way to making it unaffordable to rent multiple properties by charging a fuckton of taxes and fees. I'd kill for something forcing airbnb, vrbo, etc to actually cooperate.
I'll go one step further, I'd pay taxes to the government that actually regulates shitty business practices. How is it easier to have a 12% increase in homelessness last year than it is to regulate fucking airbnb? Airbnb is not northrup grumman. It's not allied steel. it can go the fuck away.
Oh I 100% agree - when I finally managed to finish my degree a few years ago, I did my capstone research on suburban/rural homelessness, and I'm now an even bigger proponent of housing-first policies. Supportive housing works better than piecemeal programs, and outcomes are better for sobriety and mental health treatment than they are for programs that require those things as a condition of getting housing.
Unfortunately, people fucking love to hate the homeless. Everyone wants to put conditions on every scrap you give them because "I worked for what I have, they should have to, too!" There's not a lot of political support to be found for policies that are based on meeting people where they are. Saying we should use housing that's already vacant to help people get off the streets would get you booed right out of the room a lot of the time.
Cops would rather beat up college students and the unhoused than go after landlords.
Ah, yes. We don't have money because collecting taxes would be too expensive. Classic.
EDIT:
https://www.businessinsider.com/irs-tax-audits-recover-12-dollars-for-every-dollar-spent-2023-6?op=1
I mean, paying to sue a massive company that definitely has more (and probably better) attorneys than we do in order to collect a few thousand dollars more a year in sales tax isn't necessarily the best use of city funds. If we were a bigger city, it would make more sense, but it would take us years just for the taxes to cover what we'd spend in attorneys fees and staff time. I don't like that that's the reality, but I can see why the idea isn't popular.
Also, the police aren't involved in regulating short-term rentals. I'm no fan of cops, but this is entirely civil and they have no part in this particular issue.
Is it not tax evasion/fraud? In the US, either can bring criminal charges. For a smaller municipality, is there no assistance available from higher government?
No clue - most of that is either a department I'm not in and don't know much about, or it's way over my head. I'm just a mid-level peon. And politicians are the ones who have to give us the tools to actually do our jobs and all of these companies have deep pockets. That's the biggest impediment.
That's fair.
Not being corrupted is just too darn expensive.
Visiting my husband's home town where this has happened and all his parent's friends have moved into trailers because the houses where they raised their kids were bought for insane amounts but then they couldn't afford a smaller house in the same town. Where we live now on the East Coast, we can no longer stay in our school district for less than half a million because doctors from larger urban areas keep buying the houses in our school district and we're being forced 60+100 miles out from my hometown where we raised our young kids to even begin to afford housing.
The government just doesn't work for the people anymore. It works for the donors that fund them.