Monday, October 17, 2011


In 2011 the National Association of Realtors asked Robinson & Cole, LLP to write this White Paper about Vacation Rental Restrictions. The author was Brian W. Blaesser.
This is one of the best and most balanced overviews I have seen about the regulatory issues vacation rental owners face.


      ... some short-term rental regulations might also cause an owner to lose rental income because of suspension or revocation of a rental permit, even if the reason for suspension or revocation is beyond the owner‘s control (e.g., tenant behavior).

      ... 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.

Get the full 30 page White Paper here ...

Note that Highlights were added by the blog author.

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