...defendants' practice of renting their vacation home on a short-term basis through a third party is not a commercial enterprise. Defendants' home is not open to the public for on-site rental, such as a motel, nor is it advertised as a rental by signs on the property. The maximum number of renters and vehicles allowed at any one time appears to be reasonable given the size of the home. What occurs on defendants' property is not any greater infringement on the residential character of the subdivision than would occur with a large family that regularly visited its own vacation home. The only distinction is that defendants receive a fee for the use of their home. Under the covenants involved in this case, that alone is not enough to constitute a commercial enterprise.
... added limitations on the use of properties that short-term rental housing restrictions impose may cause property values in the district or neighborhood to decrease.
A widespread ban on short-term rentals that results in a substantial number of homes being sold or foreclosed upon may flood the market, causing property values to fall and remain depressed for a period of time.
... tourists who become aware of the new restrictions may perceive them as being motivated by, and evidence of, an ―anti-tourist‖ sentiment among full time residents of the community.
... short-term rental restrictions that negatively affect local tourism could cause sales tax revenue to decrease if restaurant and retail sales are down due to diminished tourism.
It is well established that a land use regulation that is excessively restrictive may constitute a ―taking of property for which compensation must be paid under the state constitution and the Fifth and Fourteenth Amendments to the United States Constitution.
Communities that have not adopted general community-wide noise regulations or the other regulations aimed at curtailing the types of behaviors and activities that would be regulated under a short-term rental ordinance, should be encouraged to adopt such general regulations rather than to single out short-term rental properties for regulation.