With a unanimous vote, the Henderson City Council gives the green light for licencing vacation rental in residential areas. Before the vote, Henderson only allowed vacation rentals in the tourist corridor but now that this kind of licencing is made possible, the city is destined to become vacation rental capital of Southern Nevada.
The new regulations include short term vacation rentals such as those listed on Airbnb, which is a digital platform used by millions of hosts and travellers around the world. Websites, like Airbnb, don’t own property or organise travel groups, instead, they offer a safe platform connecting travellers with homeowners, expanding the horizons of lodging options.
According to Henderson officials, hundreds of vacation rental units are currently operating without any approvals. Under the new regulations, short term rentals will have to pay an annual licensing fee of $820, bringing in nearly $370,000 to the city. Other rules include; a minimum stay of two nights, paying for insurance, and not violating homeowners associations rules.
Negative effects of short term rentals
Short term rentals are often criticised as they can have negative effects on the quality of life of a residential community. Often an increase in the demand for these vacation rentals can spike up the rental prices for locals who need to live and work in the city.
House owners are realising the potential to charging more on multiple short term stays throughout the month rather than by renting for long term residents. According to a study by the Los Angeles Alliance for New Economy
“landlords reap a year’s worth of rent in a fraction of the time on the short-term market — 83 days.”
The study revealed that the city is losing 11 rental units every day to short term vacation rentals and that rent has risen by $464 million due to the availability of fewer units.
In comments made by one of Henderson homeowners, they said “this is ridiculous. Being able to turn a family community into short-term rentals is being inconsiderate to the owners of the homes here. It brings party people to the community with no consideration to the folks living there full time.
” Others have argued that it might also bring the value of surrounding property down as no one wants to live across the street from an advertised short-term rental.”
Implications of the Council’s decision
Council members listened to the testimony of 30 people including homeowners, residents, and industry representatives. The city plans to engage private companies to monitor rental websites for any breaches of unlicensed properties.
All violators will receive a fine. Moreover, the Council has taken the neighbours complaints into account and have created a dedicated hotline to deal with any issues that might arise. These steps and more were taken by the Council to ensure the residents’ well-being.