NYC Mayoral Candidates Discuss Vacation Rentals, the Ban, and Economic Development

On April 26, 2013, at the Mayoral Forum on Future of NYC’s Entrepreneurial Economy, candidates discussed a variety of issues that impact New York City's economy.  At one point the candidates were asked their opinion about vacation rentals and the local vacation rental ban.

Here is a transcript of that conversation...

Moderator: 

        Ben Smith, Editor in Chief of Buzzfeed

Participants:
        Saul Albanese, former City Council member
        Bill de Blasio, Public Advocate
        Adolfo Carrión, former Bronx Borough President
        John Liu, NYC Comptroller
        Christine Quinn, City Council Speaker
        Bill Thompson, former NYC Comptroller

Ben Smith: To bring it back to some of those companies, what Fred Wilson was talking about this morning, something a lot of tech entrepreneurs find incomprehensible- Are regulations that get in the way of, I guess Airbnb was the business he mentioned, he sort of vilified the hotel lobby, but I think actually, critically for the folks on this stage, he should probably be vilifying the hotel workers union, who is probably somebody you guys talk to more, I mean should, and I wonder in the specific case of Airbnb, should, you know should they be allowed, which is technically illegal in the city, despite being huge and despite providing a kind of affordable rental that you know you can’t get from hotel, Comptroller Liu- do you think they should be allowed to kind of dive into this market, should the government be putting up barriers?

John Liu: Should who? You’re saying…

Ben Smith: The company Airbnb- I don’t know does anybody want to jump in on this who had stronger feelings on Airbnb?

Bill de Blasio: Look I think it is not a question in that case of just access to a service I think this is a different matter when you talk about the fact that we have laws to ensure the quality of any habitation, whether it’s residential or it’s a hotel habitation, the problem with mixing the 2 in an open market is you are exposing folks who live in a building who you know it may be a rental it may be a co-op whatever it is, who live by a set of ground rules about safety and security to folks who are not part of that system and may be only passing through for a few days and that’s not what the residents of the building signed up for, and that’s the court issue.

Christine Quinn: Ben, let me just jump in here, I mean the Public Advocate [Bill de Blasio] is right, you know the issue of Airbnb isn’t really one about technology at its core, I mean we are having across this city, loss of affordable rental units to landlords who are, and this is not necessarily the folks who are on Airbnb, but this is happening simultaneously, to landlords who are converting their residential units into tourist hotels, the night of Hurricane Sandy, there was a building collapse on 8th Avenue in Chelsea, every person who was in the building that night was a tourist, all who came to NYC through one travel company, now that building wasn’t up to code, in part I think because the landlord didn’t have the same urgency because people weren’t living there, two, it was 15 or 20 units of affordable housing that were gone in Chelsea, that’s not allowed, by law you are not allowed to take rental apartments and make them hotel units, now the issue.

Ben Smith: right but the issue is, this is an incredibly popular company and service and operated globally.

Christine Quinn: Wait, wait, wait, but the issue we should take from this isn’t that laws on housing and safety get trumped by the potential of entrepreneurship , but what we do need to take from this is that we need to add tech entrepreneurs more into the conversation about government, because had Airbnb entered the conversation earlier, there might have been different relief that could be offered to them in Albany, and in fact, my office is in conversation with them now to see if there is some way to thread the needle differently for them and others, so I think what we have to take from this is not a good idea overrides fundamental laws of NY but we need to have this sector more front and center in the conversations as other stake holders have been.

Ben Smith: Mr. Carrion, I mean this isn’t, it’s not like this is a theoretical question, I mean Airbnb is all over the place, people use it all the time, I mean, can the city catch up?

Adolfo Carrión: I’m not entirely convinced it is a gigantic issue, it is an important issue though, but it speaks to something else that is happening around the world and that we have to catch up with here in NYC, my daughter is doing her Spring Semester Junior year in Barcelona, so we went to visit her, and guess what we used a service to find a room, to find an affordable room in a European city and if you’re buying hotel space in any city, any major city in the world, you know one- it’s priced very competitively, so it speaks to some larger issues, we have a very high occupancy rate or a very low vacancy rate of hotel rooms in NYC, people want to come here, I think we have to take a public policy posture, we grew to 52 million tourists last year, that industry generates 350,000 jobs, 90,000 of those jobs are in the hotel sector, that sector can continue to grow, we need to figure out ways to make NYC much more user friendly, so that people are not exploiting those opportunities to take a unit that we need for affordable housing for a NY family, and turning it into an unsafe situation and a for profit situation for them, the rules don’t even apply, obviously they are defying every rule, every law, they are making the building unsafe.

###

Elephants in the Room: Homeaway, Wyndham & Tripadvisor Compete

Many vacation rental owners have been watching nervously as Homeaway.Com has bought up more and more listing sites, listing fees have risen, and more and more of the guest selection and booking process is being handled by outside parties.  In spite of some concerns, Homeaway is a smart company and has done a good job of addressing many of the needs of VR Owners.

Wyndham has also been making acquisitions, and is now seen as a primary competitor to Homeaway.

But there is another elephant in the room.  Trip Advisor continues to buy up listing sites and grow its share of the market.  Trip Advisor's sites get 200 million unique visitors per month, and provide over 100 million commenets and reviews.   They have a presence in 30 countries. With the recent acquisition of Niumba, a VR listing site for Spain, their portfolio of listing and travel related sites now includes:

• www.flipkey.com
• www.holidaylettings.co.uk
• www.holidaywatchdog.com
• www.independenttraveler.com
• www.airfarewatchdog.com
• www.bookingbuddy.com
• www.cruisecritic.com
• www.everytrail.com
• www.familyvacationcritic.com
• www.jetsetter.com
• www.onetime.com
• www.seatguru.com
• www.sniqueaway.com
• www.smartertravel.com
• www.tingo.com
• www.travel-library.com
• www.travelpod.com
• www.virtualtourist.com
• www.whereivebeen.com
• www.kuxun.cn

A New Effort to Tax Vacation Rentals in Oregon - will it happen in your state too?

Oregon state legislators are trying to find a new way to assess taxes on vacation rental activities. Oregon House Bill 2656 would expand and increase taxes on tourism, by attempting to capture tax revenues on special service fees and any other charges associated with booking a hotel room or a vacation rental.

Oregon already has a statewide lodging tax.  Most local communities have lodging taxes too, so tourists often pay between 10% and 15% in lodging taxes when they visit our state.  Lodging taxes are common, but to my knowledge no other state has lodging tax laws that would be as invasive as the laws in Oregon would be if this new bill passes.  If the law passes in Oregon, other states will take notice and this could become a nationwide trend.

The new tax would have immediate impact on vacation rental owners and the businesses that serve rental owners and their guests.

• If your property is booked through an on-line travel site like AirBnB, Expedia or Homeaway, and you pay the site any fees for handling your booking transaction, the listing site would pay a new tax on those fees, and the tax would be passed through to the property owner.
• If your property is booked through a local travel agent or a rental property managers and there are any per-booking fees or other charges associated with the booking, the agent or manager would pay a new tax on those special fees, and the tax would likely be passed through to the property owner.
• If you book your own properties, and there are any special service fees that would not normally be taxed under existing local and state lodging taxes (hot tub usage fees, cleaning reimbursements, etc.), under this new bill a tax might be assessed.
• Regardless of what your association is with Oregon tourism, the new tax could have negative impacts on vacation rentals, bed & breakfasts and small locally owned hotels, decreasing bookings and interfering with the current economic recovery, especially in small rural communities that depend on tourism.

Some opponents of the bill say it favors large, out of state, corporate hotel chains.  These chains handle most of their bookings internally, so there are no extra fees to tax.

Proponents of this new tax apparently do not realize that online travel sites, property managers and short term rental owners promote Oregon to a world of potential tourists at no charge to the state. In doing this they generate $8.8 billion in spending in the state, help fill the state's tax coffers, bring significant tax revenues to many small communities that desperately need them, and support between 90,000 and 100,000 jobs in the state.

Small lodging operations are a primary driver of tourism into small Oregon towns, and are often one of the 3 largest sectors of local economies that help such towns survive.  Taxes are a fact of life, but lets be smart about what we tax.

It makes no sense to discourage tourism with a new tax, and then turn around and spend millions of dollars promoting the state as a tourist destination.

It makes no sense to lay a new tax in the lap of small business owners statewide who work hard to bring tourism into our communities, while these businesses are struggling to survive, and are already collecting significant tax revenues for local and statement government activities.

VRs Had a $56 Million Impact on San Francisco

According to Forbes Magazine, vacation rental activity originating from the AirBnB listing site alone generate $56 million over the course of a year in San Francisco. The study did not take into account vacation rental activity that originates from other list sites and other sources of vacation rental activity.

The figure breaks down as $12.7 million going to rental owners, and $43.1 million going to area businesses.

The study was conducted by HR&A Advisors, and is based on booking data from June 2011 to May 2012, and an online survey of 928 travelers and 344 hosts.

The study was recently brought to the attention of Aldermen in Evanston, IL, as they consider a move to ban vacation rentals, and weigh the impacts of a ban on local economic activity.

Read Forbes article here.

Read about ongoing discussions about VRs in Evanston here.

Doug Coates

US Conference of Mayors Supports Vacation Rentals

In June of 2012, the US Conference of Mayors passed the following resolution to show their support for vacation rentals and other small lodging operations:

PROMOTION OF ECONOMIC DEVELOPMENT 

THROUGH THE VISITORS INDUSTRY

WHEREAS, communities throughout the United States rely on local hotel taxes to promote travel and tourism and support the local visitors industry; and 

WHEREAS, local hotel taxes often fund convention and visitors bureaus, convention centers, sports arenas and sports teams; and 

WHEREAS, local hotel taxes often support local cultural programs including music, film, gaming, visual arts, dance and more; and

WHEREAS, short-term rental of homes can often be subject to hotel taxes; and 

WHEREAS, short-term rental of homes can provide a flexible housing stock that allows family travelers spending longer periods of time in a community a safe accommodation while contributing to the local economy; and

WHEREAS, short-term rental of homes can provide homeowners an opportunity to hold property as an investment, for a better sales market, or for future planning; and 

WHEREAS, fair regulation of short-term rentals ensures greater compliance and greater receipt of local hotel taxes; and

WHEREAS, regulations of short-term rentals that establish a reliable way for a municipality to identify and contact the short-term rental owner, make the tax collection and remittance obligation clear and treat the short-term rental owner the same as long-term rental owners can achieve the highest level of compliance; and 

WHEREAS, onerous regulations of short-term rentals can drive the industry underground, thus evading local regulations and local hotel taxes;

NOW, THEREFORE, BE IT RESOLVED, that the U.S. Conference of Mayors urges support for economic development opportunities through the visitors industry by encouraging regulations of the short-term rental industry that (1) establish a reliable way for the municipality to identify and contact the short-term rental owner; (2) make the tax collection and remittance obligations clear to the short-term rental owner; and (3) treat short-term rental tenants the same as long-term rental tenants. Regulations that accomplish all three can achieve a high level of compliance, and are highly effective.

VR Owners Cautiously Exploring AirBnB

There is always a frank discussion going on that the Yahoo vacation rental owners group about issues that VR owners face when dealing with guests, cleaners and the growing vacation rental service industry (listing sites, etc.).

Last week the group turned its attention to the viability of what AirBnB offers for the full time vacation rental owner, ie., those of us to attempt to rent out our homes as much as possible and run our VR operations more like a business than a hobby.

There was no shortage of opinions and concerns.  Here are a few that were repeated by several owners:

• While many VR listing sites charge an annual fee for the privilege of having your property listed, AirBnB charges no such fee, but charges both the guest and the owner a fee when someone books a property.  Some owners don't like the "pay for the booking" revenue model.
• AirBnB forces all communications between the owner and the potential guest to go through its web site, in order to maintain control over the booking process so it can collect its booking fees.  As a result the potential guest never gets access to much of the information that an owner would normally provide to a potential guest.  Some owners feel that this is unfair to the guest and interferes with the owner's ability to select the guests that they want.
• AirBnB attempts to dictate important elements of the rental relationship, taking control of the cancellation terms, the payment schedule and other things that can be important to a VR owner.

I was skeptical about AirBnB at first, and even more skeptical when I looked into signing up and found that their Cancellation Policy options were very limited, totally out of sync with my own policies, and did little to protect me from last minute cancellations that could cost me a few thousand dollars of revenues.

Then I decided that I should try AirBnB with my 3 bedroom home, which is harder to rent than my smaller, less expensive home.  What did I have to lose? A few additional bookings each year on the larger more expensive home would be well worth the set-up time, the compromised cancellation policy, and the small per-booking fees I would have to pay.

I got a few inquiries, but nothing really happened for the better part of a year. Then an occasional booking actually consummated. So far I've had 3 AirBnB bookings on this home, and one that hasn't come yet, and there hasn't been any problem. I believe I have filled in some open dates that I would otherwise not have filled in. 

I agree with comments by several VR owners that AirBnB short-changes the guest, by intentionally interfering with the amount of information they can get from the rental home owner about the property they are thinking of renting. I also agree that their policies interfere with my ability to carefully select my guests.  

Anything that interferes with my ability to select guests carefully also makes it harder for me to be sure my guests won't violate local laws that regulate my rentals, or have a situation that disturbs full-time residents in the area of my homes. AirBnB's intentional interference is understandable, given the way they make their money, but it is a serious flaw, and one that could be overcome by creative thinkers, without compromising their revenue model.

Another serious flaw continues to be the inability to accommodate owner rental policies, in favor of a rigid set of limited policies dictated by AirBnB. Some owner rental policies are well thought out, or are necessary for particular properties, and AirBnB rental policy options can and should be more flexible.

Perhaps the biggest problem is AirBnB's diverse customer base.  Many AirBnB "property owners" are people with an extra room in their home to rent or people who rent their home out when they are out of town -- while others are full time professional VR home rental owners. The same set of AirBnB policies doesn't work well for both groups, but AirBnB doesn't seem to recognize that the owner who rents a dwelling on a full time basis faces different management issues than someone who rents out a room occasionally.

I don't have a problem with reasonable per-booking charges, and actually see this as an advantage when listing with companies that don't provide a large portion of my bookings. For companies that provide a large portion of my bookings, I prefer the annual charge instead of the per-booking charge, for obvious reasons.

I believe that the per-booking revenue model will become the norm over the next few years. Homeaway.Com is already moving in that direction, its an easier sell for the listing site, and an easier buy for many VR owners. As long as the per-booking charges are reasonable, this change will be tolerable, if not advantageous. If listing site owners or their investors get greedy and start upping the fees, then it will be up to VR owners to find or create alternatives to this revenue model.

Overall, I think that AirBnB offers something that most other listing sites don't offer yet -- they are bridging the gap between the traditional listing site model and the sharing economy.  For those of us who rent our homes year-round, AirBnB offers important opportunities to fill vacant dates, but is unlikely to be seen as a primary source of bookings.  As they perfect their operations and build their understanding of the needs of those renting their homes year-round, this may change.

Doug Coates
www.vrregs.com

New Twists on the idea of Short Term Rentals

The concept of lending out a room or a cottage that you don't need at the time, has been around for centuries.  Even in the middle ages, a weary traveler would arrive in a small hamlet where there was no inn, and find that locals would share a room or a spare cottage for a modest fee or trade.  A century ago trips to the coast from inland cities were common pursuits, and people were able to rent cottages and homes during their stay.

The concept has grown with the emergence of the internet and recent economic changes.  Venture capitalists, entrepreneurs, and existing businesses have noticed.  New businesses have formed, and existing businesses have made changes to accommodate the activity. Larger new companies like HomeAway.Com and AirBnB have been very successful.  Some of these businesses are now on the NY Stock Exchange.

Billions of dollars changes hands every year as a result of short term rental activity - guests pay for their lodging and patronize local restaurants and businesses - owners pay local businesses for supplies, management, cleaning and maintenance services, and taxes are collected by local communities.  Many more billions are tied up in rental home real estate, and vacation rental activity has become a major driver for the real estate business in many small communities.

Now, with the emergence of internet-driven social networks, the sharing economy and peer marketing, the short term rental sector is evolving again.  A new company called SpinLister now specializes in peer to peer bike rental in New York City.  bnbBoat.Com will soon offer listing services for owners of Yachts and Boats who are willing to rent them out by the hour, the day or the week.

The Economist reports that everything from cars to surfboards to saxophones is being shared using this model.

The peer to peer economy is estimated to be directly involved in $26 billion of transactions each year, and if we count the value of businesses that serve this sector of the economy, and the value of assets that are shared through this sector of the economy, you start to realize that this part of our economy can not be ignored.  Many destinations communities find that short term rentals are one of the top 3 drivers of their local economy.

Collaborative consumption is another name for it, and its a good thing.  Owners make money from under-used assets.  Renters get to use assets that they otherwise would not have access to.  The personalized nature of the service makes it fun for everyone.  And some people point out that fewer resources will be tied up in the production of more homes and cars and other assets if people can share what we already have.

Its an old idea, with some new twists!

Doug Coates
4/21/13

Vacation Rental Owners and AirBnB offer help to those affected by the Boston Marathon bombing.

In an effort to help in the aftermath of the Boston Marathon bombing, AirBnB is waiving transaction fees and some Boston area vacation rental homes are offering free or reduced cost lodging.  Traditionally, larger listing sites like AirBnB and HomeAway.Com step in and try to help in times of crisis.   And many many owners of vacation rental homes have contributed lodging to help victims of recent tragedies.

For more info on AirBnB assistance, go to www.airbnb.com/boston-urgent.

Doug Coates

Homeaway Expands Again - 3 New Partnerships with Timeshare Industry

Homeaway.Com announced today the formation of partnerships with 2 resort companies and an online reservation service that will allow Homeaway to direct prospective guests to available Time Share properties, in addition to the 700,000 homes that Homeaway also lists.

By expanding the available inventory of properties that Homeaway can rent out, the partnerships should result in increased revenues for Homeaway -- furthering its dominant position in the VR marketplace.

The increase in rental inventory at Homeaway also results in increased competition between VR home owners, and thus may decrease revenues to individual VR home owners -- especially those in areas where there is a large inventory of unused Time Share properties available.

The move by Homeaway also dilutes the uniqueness of the offerings by traditional vacation rental owners.  Many VR owners offer personalized services and perks when we rent out our homes.

I'll never forget the VR owner who asked the ages of my children when I rented their home, and had age-appropriate treats and toys for the kids when we arrived.  The kids have never forgotten either.

The guest who rents a Time Share that happens to be vacant is less like to get this kind of personalized attention.

Read more...

Doug Coates

Wyndham is Buying Up Vacation Rental Companies

Wyndam announced last week the acquisition of 3 large vacation rental companies - Kaiser Realty in Alabama, Oceana Resorts in South Carolina, and the Cumbrian Cottages in the UK.

Last September we announced Wyndham intention to become the major player in the vacation rental home market in this popular article: Wyndam Hotel Chain Competes Directly with Privately Owned Vacation Rentals. The latest acquistions are part of their aggressive growth strategy.

Geoff Ballotti, president and CEO, Wyndham Exchange & Rentals, said, “The acquisition of Oceana, Kaiser and Cumbrian Cottages significantly enhances the leisure accommodations we offer in popular vacation destinations.”

Wyndham Worldwide’s Bob Milne and Kaiser Realty’s Glen Kaiser currently serve on the board of directors for theVacation Rental Managers Association (VRMA).

Wyndham promotes itself as "the world's largest professionally managed vacation rental business".  The company now includes over 100,000 properties across 500 destinations.

Everyone should be paying attention to what Wyndham is doing.

Doug Coates

Fake Inquiries from Listing Sites

Some businesses that sell products and services on the internet hire people to fool consumers about the quality of those products and services.  Some of these "ghost writers" will write false reviews that praise the quality of a product or service.   Others will submit fake inquiries, and there is some evidence that fake inquiries are being submitted to VR owners by short-term rental listing sites.

One VR owner was curious about why inquires from a new listing site that he subscribed to rarely generated any bookings, and started to dig deeper.  After some research he found a women who admitted to posting fake inquiries.   He submitted his evidence to the listing site, and the listing site refunded the money for his listing.

This incident was in Europe.  Is it happening in North America too?  Perhaps.

Read more here...

VR Owner Brings Lawsuit Against Seal Beach, CA

Last month Seal Beach in California passed one of the most highly restrictive vacation rental ordinances in the country.  The new law completely prohibits short term rental activity in all areas of the city except Old Town, and in Old Town only those who have already applied for a permit will be consider for exemption from the law.

Robert Beck is a local attorney who owns rentals in the Old Town neighborhood, and he filed a lawsuit after the law was approved.  He says he understands the concerns that the law is designed to address, but he and his tenants have been following all of the rules, and the new law should not apply to short term rentals that were previously licensed.   Beck has been licensed and paying lodging taxes since 2010.

Beck says that only one property in the city has generated noise complaints, and that properly regulated vacation rentals have not been shown to cause problems in most cases.

For more information and related articles click here.

AirBnB Ignores New York City Laws That Prohibit Short Term Rentals

A New York Times article last week reported on the plight of Nigel Warren - and apartment dweller who rented out his bedroom for $100 per night through AirBnB, and was subsequently faced with threats of $40,000 fines for violating local laws that prohibit short term rentals.

Mr Warren was lucky and got away with no fines due to an administrative mistake by the city, but the case points out the risks that hosts take when they rent out space on a short term basis in communities where the laws prohibit short term rentals, and communities where the laws are just vague about the issue.

AirBnB profited from the booking that Mr Warren was almost fined for, but when Mr Warren asked AirBnB why he wasn't warned that he shouldn't rent his apartment in a major city where the laws are not ambiguous, AirBnB's response was that they were sorry that Mr Warren had made a mistake.

Major listing sites like AirBnB and Homeaway can't track every relevant regulation in every little hamlet, but Mr Warren's situation raises a question - is it responsible for the listing site to profit from a listing or a booking in an area like NY City where short term rentals are clearly restricted.

Here's a link to the NY Times article.

Doug Coates

Vacation Rental Owners Help Victims of Sandy

Once again vacation rental home owners and HomeAway.Com step up to the plate to help victims of natural and man made disasters.  Similar assistance was offered during the Gulf Oil Spill and to victims of Hurricane Irene and Hurricane Isaac. 

Vacation rental homes are being offered at reduced rates and for free in some cases to families that lost their home in the storm all up and down the east coast.

For more information go to http://community.homeaway.com/groups/hurricane-sandy 

Doug Coates 

BC Supreme Court Rules Residences Can Be Rented

Justice Peter Leask of the BC Supreme Court ruled this week that Westcoast Vacations Inc does not operate commercial guest accommodations  and is therefore not in violation of local laws that would prevent them from renting out residences on a short term basis.

The court ruled that guests are contracting directly with the property owners to stay in their home, and that reservation services provided by the property management company do not change the nature of the relationship between the guest and the owner.

The ruling is a victory for those who argue when an owner rents out their home on either a short or long term basis:

a)  this does not make the owner a business operation

b)  this does not make the usage of the home a commercial activity instead of a residential activity.

Doug Coates

Another Palm Springs Area city OKs Vacation Rentals

The city council of La Quinta, near Palm Springs, CA, approved yesterday a new short term rental program that includes provisions that allow it to recapture hundreds of thousands of dollars of past due lodging taxes during its first year.

The unanimous vote will help address the city's projected $2,000,000 budget shortfall.  Once the program is fully implemented the city expects direct revenues from vacation rental activity to provide $600,000 to the city each year.  Additional revenues will be generated for area businesses that provide products and services to vacation rentals and their guests.

Vacation rentals are most popular in the city during the Coachaella Vally Music and Arts Festival, and the Stagecoach: California's Country Music Festival.

Read more....

Doug Coates

AirBnB Gears up to fight bad Rental Laws

AirBnb just joined the short list of major vacation rental businesses that have hired Government Relations personnel to help address problems with the way that vacation rentals and related businesses are regulated.  

Last year Homeaway.Com appointed Matt Curtis to handle the similar issues, despite prior comments by Homeaway people that they felt that this issue should be handled by an independent outside organization.  Curtis was the Government Relations for the Mayor of Austin prior to signing on with Homeaway.

AirBnB's new hire is David Hantman - the former head of Government Relations for Yahoo.  Hantman will be put to work right away - California is already looking at regulatory issues around how AirBnB guest payments are handled, and around taxes.

It will be interesting to see if Hantman, Curtis, VRRegs.Com and others working on these issues can collaborate.  Big vacation rental listing sites clearly have a business interest in management of VR regulation, but this is an industry-wide issue that affects everyone involved, and collaboration is key to handling it properly.

More information...

Doug Coates

Vacation Rentals Help Coachella Valley Tourism Grow

Several factors account for the growth of vacation rental activity in the US over the last decade, including:

    a) on-line listing and booking services that make it easy to rent a VR for both the owner and prospective guests.
    b) a growing interest in this family-friendly style of traveling, and the fact that many family members are disbursed across the country.
    c)  recent economic turmoil, which has left many homeowners needing to generate income from properties where this previously was not necessary.

Palm Springs and the surrounding Coachella Valley area are seeing explosive growth in tourism as a result.

"People want to spend time in an environment where they can cook together and enjoy each other's company.  Its often a shared social experience.  Its often some type of family get-together" says Rob Kincaid - president of Vacation Palm Springs - a vacation rental firm.

"I think you get a better value with a home than with a hotel room" says Lisa Riding of the Acme Rental Company.

The listing service AirBnB cites that bookings in the area have tripled this year.  

City and county officials have passed local ordinances that encourage and support this growth.  Local laws acknowledge that "family dwelling units provide alternate visitor serving opportunities for the city."  Guest receive a Welcome brochure from the city that reminds guests that they are in staying in a residential neighborhood and should act accordingly.

See a related article in this blog here.

See a related media article here.

VR Opponents Already Complaining About Austin's New Short Term Rental Law

Just a few days before a new law that regulates Vacation Rental homes takes effect on 10/1/12, Austin Texas neighborhoods who participated in passing the new restrictions have shown up at Planning Commission meetings to protest the law and ask for additional regulations.

The city's Planning Commission rejected the request.  City staff member Jerry Rosthoven asked the Commission to give the new law time to work before any new changes are considered.  The city already plans to review the law one year after it takes effect, and can review it earlier if there is a reason to.

Read more here.

Doug Coates

Providence Utah Zoning Commission Wrestles with Vacation Rental Issues

“We have a lot of home businesses in Providence and that’s why people want to move here,” said Skarlet Bankhead, the city administrator. Most at-home business owners live on their property but this situation is different, she said.

“We need to be cautious because what we will be allowing is an informal lodging house,” Bankhead said.

Bed & Breakfasts are allowed in Residential Areas in this Utah college town, but city officials aren't sure how to make the same arrangements for vacation rental homes.  

The city is looking for a solution that is fair for everyone involved, but city officials state that they are worried about making residential zones "transient areas", in spite of the fact that having transient guest in B&Bs has not been a problem.  The city cites concerns about "large family reunions."

Meanwhile local property owners like Brandan Hadlock are trying to figure out how to rent their property out on a short term basis.  “So many people are unemployed, and opportunities like this should be made possible for people to maximize the value of their assets" said Hadlock.  He feels he should be able to do what he wants with his property.

The zoning commission meets on September 26th to discuss this.

See a related article here.

Doug Coates

Wyndam Hotel Chain Competes Directly with Privately Owned Vacation Rentals

Under the name Wyndham Vacation Rentals, the Wyndham hotel chain is planning to directly compete with your privately owned vacation rental operations.  They are already promoting themselves as "the world's largest professionally managed vacation rental business".

Based on a 2012 survey that Wyndham commissioned with the travel consulting firm PhoCusWright, Wyndham cites a number of important findings.  The most important finding from their perspective, concerns the strong appeal of "a hotel-branded vacation rental company" to consumers.

They further cite that 86% of non-frequent vacation home renters say that they are more likely to rent from a hotel-branded vacation rental, because they like consistency in features and service.  This suggests that those who don't rent vacation homes often are worried that they won't be satisfied with the quality of their vacation home rental experiences - a concern that is also supported by other studies.

More specifically, those who responded to the survey said they would like the hotel-branded option because:
•  I would know what standard to expect from a home
•  It would be easier to contact someone with longer business hours
•  It would be easier to search and book online
•  A home would have more service options like housekeeping and check-in
•  There would be more information and pictures available online
•  I know I would have recourse if I needed help

PhoCusWright says that there are 20 million non-frequent vacation renters who would spend over $12 billion dollars each year to stay in short term rental homes.  According to their numbers, capturing these additional customers for the vacation rental sector would just about double the amount of money spent on vacation rentals in the US each year.

To support their marketing effort, and encourage prospective vacation home guests, Wyndham is rolling out a Vacation Rental Bill of Rights, which tells renters that they have a right to:

•  Work with an experienced hospitality company they can trust
•  Assistance from a knowledgeable customer service team before, during and after their stay
•  Easily search from property descriptions that are detailed and accurate
•  Choose from a diverse selection of distinctive vacation accommodations
•  Book confidently in real time and pay online
•  A clean, regularly inspected vacation rental 

The study focuses on how to capture those potential VR guests that have concerns about what their experience in a short term rental will be like, and does not cover much about what the experience is of those guests who are already comfortable about the idea of vacation rentals.  

If you run an owner-managed VR, or operate a small property management company - be aware that Wyndham is gearing up to capture your future customers.

Read a Press Release here.

Read the Survey here.

Doug Coates

McMinnville, Oregon Planning Commission considers relaxing Vacation Rental density restrictions

On September 20, 2012 the Planning Commission in McMinnville, Oregon will consider a request by a local family to revise the requirement that short term rental homes should be separated by 1/8th mile.  

The family wants to operate their family home as a vacation rental for a period of time, but under current rules they can't because another vacation rental is nearby.

One of the planners noted in a memo that no other Oregon jurisdiction has such a separation requirement.  Some other communities have outright restrictions, and other communities in the state have no restrictions at all.

Read a related article here...

Doug Coates

56% Support Vacation Rentals in Dana Point

At the request of the Dana Point City Council, a research firm polled 400 registered voters in June to find out their views about Vacation Rentals.

The results...

• 76 percent said they were unaware that short-term vacation rentals in residential areas are currently prohibited because they are not expressly allowed in the zoning code.

• 56 percent of respondents believed that owners should be allowed to rent out their properties for short-term vacation use, defined as less than 30 days. Thirty-two percent opposed it, and 12 percent were undecided.

• 66 percent said they support allowing short-term rentals if they are accompanied by permits requiring that renters be informed of noise and parking restrictions, and that permits be revoked if there are repeated problems. Twenty-six were opposed even under those conditions.

• 45 percent felt the city's enforcement level on vacation rentals should remain as it is, while 35 percent said it should be more aggressive. Among respondents who knew of vacation rentals in their neighborhoods, 52 percent supported more-aggressive enforcement, while 32 percent felt it should remain the same.

• 23 percent of all respondents said they knew of a vacation rental in their neighborhood, and one-third of them indicated they had experienced problems with it.

Read more...

And more...

And more...

Are Property Cleaners Employees or Independent Contractors

Updated 9/19/12

Here in Oregon vacation rental management companies that pay cleaners as independent contractors are being targeted by the state's Employment Division with audits.  Often their audit results in a finding that the cleaners are Employees, not Contractors.

Here is what the IRS says about the topic: 

“The general rule is that an individual is an independent contractor if the payer has the right to control or direct only the result of the work and not what will be done and how it will be done. The earnings of a person who is working as an independent contractor are subject to Self-Employment Tax.”

In the past I have dealt with this issue by having independent contractors sign an agreement that says:

1)  that they are independent contractors.

2)  that they are responsible for paying their Self-Employment taxes and all other required payroll and income taxes.

3)  that I have a non-exclusive contract with them, and they have the right to do similar work for any other customer, and that it is my understanding that they plan do work for other customers.

4)  that they provide at least some of their own tools & supplies

5)  that they are responsible for all aspects of how they perform their work, and that I am only interested in the quality of the completed product or service.

This is a useful document describing how the IRS defines employees vs contractors.

Doug Coates

Maui County Starts Permitting Vacation Rentals in Residential Areas

About 50 vacation rental owners have applied for permits three months after Maui County passed legislation that will allow short term rentals in its residential neighborhoods. The new law includes a cap of 400 on the number of permits that will be issued across the island. The county is getting up to 10 calls a day from people inquiring about the new permits.

Previously most short term rentals had to get special-use or conditional permits to operate – a requirement that led many vacation rentals to decide to operate illegally. According to a 2006 estimate by the Maui Rental Association, 1100 vacation rentals were operating in Maui in 2006.

The chairman of the county’s planning committee, who helped get the new legislation approved, says that the law will help make illegal short term rentals legal, and also helps protect the character of neighborhoods. Neighbors living within 500 feet of a proposed rental have to be notified of permit requests, and if enough neighbors object, the request must go before the Planning Commission.

Read a related article here.

Information from the county’s Planning Department web site is here. 

Doug Coates 

Mille Lac County Approves Short Term Rental

Mille Lac County in Minnisota approved a vacation rental on September 14th after reviewing letters from neighbors recommending denial of the permit.  One neighbor was opposed because they claimed that the vacation rental owners "moved the property line markers".  Another claimed that there wasn't enough room for parking.

The permit was approved with the condition that a fence would be built on the property line.

Read more...

Read a related article...

Seal Beach "Used Up and Thrown Away" by Tourists

Councilwoman Ellery Deaton describes local tourists who stay in vacation rentals in the California city's Old Town district as people who "use us up and throw us away".

The city already bans short term rentals in all other parts of town, and is now considering a complete ban on this lodging option in their Old Town area.

“It’s not what it used to be,” said local resident Barbara Barton about the Old Town district. “Everybody loves this little town, and they want it to be Mayberry.”

Cheri Beckerle owns a vacation rental in the area.  She said she wanted to “speak in support of those that want to join this community without actually living here.”  “Not all the renters are partiers and crazy people.” Beckerle said. “Some of us are just family.”

Read more....

When Neighbors Confront Vacation Rentals Guests

          "At this time, our city has a group of vigilantes that are using their brand of justice to impose their will on others.  It crosses the line, when that justice is imposed on innocent visitors that are the lifeblood of our city."

          Note:  

The name, address and short term rental location has been removed from the writings below, to protect the identity of the rental owner.  

Otherwise, it is a completely accurate and heartfelt description, written entirely by the owner of a short term rental, to describe what short term rental owners have to deal with in some cities, where opposition to short term rentals could be described as approaching fanaticism.

The letter was written to a consultant that was hired by the city to help resolve conflicts and controversy in that city about vacation rentals.  The consultant did not distribute copies of the letter to the members of the group that it was addressed to.

Here is the letter.

        Consensus group members and leader, 

On January 1, 2003, my brother-in-law, his wife, my wife and I met in your city to decide on a vacation rental to purchase.  We were all in our mid 50's with an income from a family trust due in May or June.  We looked at every beach-front property for sale in your city that weekend.  

We chose a property because it was constructed for a vacation rental.  Vinyl siding, metal roofing, rough cedar interior walls, no interior or exterior paint to redo every year, and a history of family rentals.  My brother-in-law had rented this home in the early 1980's as a vacation rental.  It was built by three real estate salesmen as a vacation rental in 1976.  

The home north of us was a vacation rental and still is.  The home south of us was a vacation rental and still is.  Now, this committee is proposing that our vacation rental shouldn't be in this area.  

Our home has a 36 year history as a vacation rental.  I would venture to guess that our 36 year history is more longevity than most of the people complaining about this issue.

We don't complain about our neighbors parking in the street.  We don't complain about the garbage dumpster at the apartments across the street.  We don't complain when our neighbors are working on their vehicles at 11pm.  We don't complain about the salal and blackberries taking over landscapes.  We don't care what plants our neighbors plant.  

We should have cared when the home south of us went up an additional 2 stories and the additional shade all but killed our 40' shore pine.  We don't complain when tourists park in our lot to use the stairs to the beach.  We hire a reputable management company to manage our home.  We manage our home to be an asset to the community.

Now it is time to complain.  On August 1st, one of our guests was confronted on our property by a member of your committee.  He had taken pictures of two bags of garbage that previous renters had left outside of the garbage can.  He had filed a complaint with the city.  The city had contacted our management company and the bags were removed.  

The committee member was on the property, yelling and screaming, asking what our new guest was going to do with his garbage.  The garbage was due to be picked up the next morning. 

We don't care how this gentleman acts towards us as owners, our management company, the city, or the police department.  But, for him to come onto our property and act so inappropriately towards our guest crosses a line.  If he has a problem, he has a proper recourse outlined in the present rules.  

We talked with the City police department.  We were advised that we couldn't act against this person until we had put him on legal notice.  

While we were formulating our response, my brother-in-law had a confrontation with this gentleman's wife.  On a sunny afternoon, my brother-in-law was on our back deck listening to the radio.  He noticed this gentleman's wife standing in the street positioned so she could see the people on the deck.  After 15 minutes, he went outside and talked with her.  Nothing came of this because he intoduced himself as an owner.  

She knew this was a vacation rental and she was intentionally interfering with normal beachfront activities.  If these people come onto our property again, we will use the only remedy available to us through the local police department.  As VRD owners, we all need to act on these inappropriate and unwarranted actions.

The real problem that vacation rental owners face is the vicious attacks that a few people seem to think they are compelled to do.  They need to be held to the same standards that you and I are held to.  They have to call the police or the city.  The city or the police call the representative on the license to fix the problem.  If the problem isn't fixed file a complaint.  

If these people confront the guests, have them fined or arrested.  This needs to be addressed.  At this time, our city has a group of vigilantes that are using their brand of justice to impose their will on others.  It crosses the line, when that justice is imposed on innocent visitors that are the lifeblood of our city.

(name withheld)

Lincoln City, Oregon Moves into the next phase of VRD Discussions

Lincoln City, Oregon will hold the last of a series of 8 meetings that were set up to allow representatives of VRDs, businesses and residents to develop a consensus about the future of short term rentals in the city.  The city has been buried in controversy about VRDs for several years, and the controversy got worse when a 1989 law was thrown out in favor of a series of 3 new ordinances that more severely restricted vacation rentals, starting in 2007.

In 2011, a local group of VR owners and property managers formed the Lincoln City Vacation Home Association, and formed an alliance with the Oregon Association of Vacation Rentals so they could work towards a more sensible approach to vacation rental regulation in the city.  Since then the group has conducted a vocal media campaign that explains the benefits that VRs bring to the city, and discusses the negative impacts of over-regulation.   Generally the group agrees that some level of regulation can be good for everyone, but want's regulations to be targeted towards documented issues.

Many would say that the city's mayor, Dick Anderson, wants further restrictions on VRDs, but the consensus process was done at his initiative when he proposed hiring a "Consensus Builder" consultant to bring people together.  As the series of consensus building meetings nears its end, many would say it has been a positive process for everyone to participate in, in spite of some flaws in the process.

The Consensus Group seems to be nearing a series of final recommendation that will be sent back to the mayor and the city council.  The list includes these features:

• designation of some sort of overlay zone that defines which R1 zoned areas will allow VRDs and which will not.  Under this proposal most parts of the town, where the majority of the VRDs are, would be defined as VRD inclusion zones.
• encouraging Realtors to notify home buyers if they are buying in a VRD inclusion zone.
• removal of all provisions from the VRD laws concerning parking and landscaping, so that these issues can be managed city-wide, on an equal basis for all types of homes.
• improvements in the ways that trash and noise complaints are handled.
• eliminating enforcement problems in the law, such as allowing VRD owners to be cited for actions of guests, or allowing VRD owners to be cited by both the police and the VRD enforcement officers.

However, the consensus group has no mechanism in place to ensure that its recommendations are successfully translated into a new set of VRD laws, so the future it still uncertain for city VRDs.   The mayor has promised to work with the results that come out of the group, but no one is sure how that will play out.

Doug Coates

Unanimous Approval Won for VRs in Glenwood Springs, CO

According to the Post Independent, the Glenwood Springs, Colorado city council unanimously approved an ordinance on 9/6/2012 that allows rental of city homes on a short term basis to tourists.

The ordinance says “Short term rental of dwelling units brings additional visitors to the City, can allow owners to recoup housing costs, and provides revenues for the City through the additional tax collections”.

Councilman Mike Gamba said “This provides an avenue for a property owner to keep his property, and not have it foreclosed upon”.

Doug Coates

VRBO is a Top Ten Travel Web Site

Vacation rental listing web site VRBO.Com was ranked in August 2012 as number 7 in a list of the top 10 US Travel web sites for travel destinations and accommodations.  They share the top 10 spots with travel giants like Hotels.Com, Carnival Cruise Lines and Hilton Hotels On Line.

I think its safe to say that Vacation Rentals are now part of the mainstream travel industry.

Communities that seek to increase tourist traffic should take note.  Treating short term rentals like they are a problem is foolish.  Communities should work with vacation rentals the same way they work with hotels, motels and resorts to bolster local economies.

Read a TNooz.Com article about travel web sites here.

Doug Coates

Study cites Economic Impacts of Vacation Rentals

A North Carolina study cites important economic contributions made by vacation rentals, including....

• Multi-Industry Impact

The economic impact of vacation rental is far greater than the industry’s share of tourism dollars/taxes: unlike hotels and motels, the industry often plays a prominent role in resort economies by driving local construction, real estate, finance and insurance industries.

• Subsidized Tourist Lodging

Vacation rentals are subsidized by homeowners. This can facilitate tourism in areas where large hotels and resort properties are not economically sustainable. Vacation rentals are often the lodging infrastructure that develops an area’s tourism.

• Direct Support for Local Businesses by Owners & Managers

A significant portion of revenues generated for vacation rental owners and manager goes directly to local businesses that provide supplies, cleaning services, maintenance services, advertising and the many other goods and services that are necessary to operate the rental.

• Direct Support for Local Businesses by Guests

Guests patronize restaurants, tourist attractions, sports attractions, grocery stores, shops, gas stations and a variety of other types of businesses while they stay at vacation rentals.

• Direct Support for Local Government and Community Services

Vacation rentals pay property taxes and lodging taxes that subsidize local government operations.  In turn these monies help pay for roads, and fund things like schools and hospitals.

The industry’s economic impact is not adequately profiled by the standard economic forecasting models today used by most States.

Read more...

Doug Coates

Manatee County, Florida Investigates Unlicensed Short Term Rentals

The code enforcement officer in the town of Anna Maria, Florida says she has 500 vacation rentals registered, but officials believe there might be 200 more that operate unregistered in the area.  Sherrif's Deputy Steve Ogline has been authorized to investigate unregistered VRs, and those that are found could be charged with a felony.

Only 12 properties are being investigated so far.

City Commissioner SueLynn has been advocating for control of rowdy tenants that rent from owners who ignore established rental “best practices.”  She said this is a “significant first step” in her goal to make Anna Maria a quiet and peaceful destination.

Recent Florida state legislation prohibits towns from coming up with their own vacation rental zoning regulations, and Commissioner SueLynn says that the investigations are an alternative way to try to manage the impacts of vacation rentals in the area.

Read more here ...

Doug Coates

Hawaii Ramps Up TVR Taxation Efforts

Bill SB 2089 in Hawaii is designed to enforce taxation of vacation rentals by required owners who manage their own short term rental homes and live off the island to hire property management firms.

The state says that collecting these taxes is imperative in order to cover the costs association with supporting tourism in the state.  

The proposed law faces heavy opposition from TVR owners that already pay their taxes, and who believe that the state should not force them to take on the expenses of a professional property management firm when they are already in compliance with area tax laws.

Hawaiian legislators have proposed amendments that would allow excepts for homeowners who are in compliance, but no agreement has been reached so far and opposition continues.

Read more...

Doug Coates

Vacation Rentals: How to Write Them Off on Your Taxes

by Bonnie Lee
Published by Fox Business
8/16/12

Most rental property owners don’t use their homes for personal use; it’s strictly a business operation and should be reported on Schedule E of the tax return.  However, there are some folks who own a vacation destination property and rent it out when not in personal use, and the tax rules are more complicated and specific.

The rental property doesn’t have to be a standard four-wall dwelling; it can be a boat, a recreational vehicle or even a room in your home.

To read more Click Here


Bonnie Lee owns Taxpertise and is an Enrolled Agent licensed to represent taxpayers from all 50 states at all levels within the Internal Revenue Service.  She is also the author of "Taxpertise: The Complete Book of Dirty Little Secrets and Hidden Deductions for Small Business that the IRS Doesn't Want You To Know".

Vacation Rentals & Lincoln City, Oregon – A Partnership?

This article was published as a Guest Editorial in the Lincoln City (Oregon) News Guard newspaper on August 15th, 2012 - as the city neared the end of a Consensus Building process that was designed to make recommendations to the City Council about how the city should deal with its "VRD problem".

by Doug Coates

8/15/2012

State and local governments spend a lot of your money and their time on bringing new businesses and more tourists to an area; because they know that the jobs and tax revenues that come from these efforts pay off for decades. It may take years to convince a manufacturing or service business to move into an area, but if the city is a tourist destination, it takes considerably less effort to attract more tourists.

So why do some cities, including Lincoln City, Oregon, ignore the fact that short term rental homes are enormously successful in bringing in new tourists? Lincoln city leaders have passed 3 major new VRD laws since the 1989 law was abandoned in 2007 – each more restrictive than the last. Last year they announced that additional restrictions might be enacted, without specifying what they might be, and the VRD sector has been in decline ever since.

The city’s VRD Consensus Group says the current law is unenforceable, and has discussed the need for a simpler, more straightforward law. Some Group members still want to limit VRD activity. Some push for ejection of VRDs from Residential Zones, while others propose caps and quotas to control the number of VRDs in an area.

Caps and quotas address concerns of a certain vocal local residents, but this works against city goals to increase tourism. An alternative would be to work with VRDs, to build tourism in the city and to build support for local businesses – without giving up on effectively regulating VRDs.

What would happen if city leaders, businesses, residents and VRD owners became partners in an economic and tourism development approach designed to reap the many benefits that a vibrant VRD sector can bring, while still addressing concerns of local residents and the need for an appropriate level of regulation?

It has happened in other cities, and it is time for it to happen here.

• Some cities some work directly with VRDs to spend property taxes, lodging taxes and permit fee revenues on new economic and tourism development efforts. 
• Some cities that once banned or restricted VRDs in residential zones have removed or relaxed restrictions in favor of more VRDs economic activity. 
• Some cities actively work with VRDs to bring tourist in during the slow season, when the local economy is at its weakest. Can you imagine a winter Whale Watching promotion, with our Visitors Center and the VRDs working together to bring in young families? 
• One city welcomes VRD guests with a “Good Neighbor” brochure that is produced at the expense of the city, and is found in every licensed VRD home. The brochure invites the guests to take advantage of everything the city has to offer, while also reminding guests that “being a vacation renter also means being a good neighbor” to the full time residents. 

There are certain facts that many already agree on in Lincoln City:

• VRD activity brings tax revenues, jobs and business to the city, and our city government should not interfere with that. 
• Full time residents have a right to quietly enjoy their homes, without ongoing disturbances from nearby VRDs. 
• Certain types of restrictions on VRD activity violate the property rights of VRD owners, as enshrined in Oregon’s Measure 49 and the 5th and 14th Amendments to the US Constitution. 
• An appropriate level of VRD regulation addresses neighborhood concerns, helps ensure guest safety, and provides a framework within which VRDs can provide the most benefits to everyone. 

If we agree the current VRD laws need to be rewritten – how will that happen? Should the matter be handed back to the city council a 4th time? Has that worked before? 

There are certain principles that tend guide the formation of effective VRD laws in many cities. These laws:

• should be structured to support the city’s economic development and tourism goals, and to address documented problems that VRD have caused in the city. 
• should not contain provisions concerning parking, noise, trash and landscaping, because most such regulations should apply citywide, not just to VRDs. 
• should require reasonable inspections and adequate insurance, to protect guests. 
• should never penalize owners for illegal activity of VRD guests. How many hotels would survive if illegal guest activity was considered a legitimate reason to shut down a hotel? 
• should not prevent owners from owning more than one property, or passing a VRD on to their heirs. 
• should allow for reasonable growth in the VRD sector. 
• should be designed using the considerable expertise of local VRD owners and managers. 
• should not interfere with a local VRD association’s efforts to establish standards, build dialog with the community, self-regulate and actively participate in managing the role of VRDs in the city. 

How have these approaches worked in other cities? We don’t have to look far to find areas where VRDs do well.

Tillamook County in Oregon passed its first VRD law in 2009, with considerable involvement by an active group of VRD owners and managers, who wrote portions of the law. Earlier this year the county told me that there have been almost no complaints, and no VRD permits have been revoked. More tellingly, there is no noticeable discord about VRD activity in the county. Everyone seems to be able to live with the law, and I can say from personal experience that the law has improved the way I operate my own two VRDs.

Heading south, the city of Yachats, Oregon has a law consisting of only 5 pages plus exhibits, that “recognizes the desire of many owners to rent their property on a short-term basis and provides for the orderly use and regulation of such rentals to preserve the health, safety and welfare of the community”. The law is short and to the point. It doesn’t generate much discord in the community and it is rare for there to be a complaint or a permit revocation. Are we looking at Yachats for guidance?

The VRD law for the City of Palm Springs, California starts off by recognizing that “family dwelling units provide alternate visitor serving opportunities for the city”, and goes on to specify regulations that reap the most benefits for the city out of VRDs, while providing guidance on how VRDs should operate. The city runs a Hotline to help solve problems and produces literature to educate VRD owners and their guests. The city’s desire to partner with its VRDs is obvious.

Lincoln City’s problems are not new. As the popularity of vacation rentals grows, the issue is being discussed all over the nation and in many other countries. Three years ago in Tillamook, VRD representatives sat down with a small group of citizens who had concerns about VRDs, and a solution was worked out. Maybe Lincoln City is ready for a similar approach.

Read more about vacation rentals in these other communities and other background information at www.vrregs.com/2012/08/lc-examples.html.

Original News Guard Article

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