Economic Impact
Short-term rentals can have a positive economic impact on the city they are located in. It can bring in additional income through tax revenues and at the same time increase the spending on amenities like restaurants, bars, transportation, and entertainment venues. With tourists or business travelers being more likely to stay longer in a short-term rental property than a hotel, guests spend more money during their trips. Since the short-term tend to drift away from the commercial areas and land in the residential sections, travelers are more likely to put money back into the local community.
Community Impact
Many long-term housing areas are being taken up by short-term rentals. This is decreasing the availability of long-term housing and also causing problems with affordability with housing. Some residential neighbors are concerned about what it could be doing to their neighborhoods. With new tenants coming and going every few days, there are complaints about parking issues, noise disturbances, and trash. Residents believe these rentals will change the quality of life in their area and affect their homeowner property rights.
Tourism
These short-term rentals are a way to boost tourism in the area. Since the price of short-term rentals are typically cheaper than the local hotels, creating the opportunity for the tourism sector to expand. Not only are short-term rentals appearing in cities where tourism is the most popular but also expanding into residential neighborhoods. This makes short-term rentals a sort of disruptor in the lodging industry. The hotel industry is finding that short-term rentals have an unfair advantage since they do not have to pay staff and are not regulated like hotels are. Also the fact that they are not treated like regular businesses in the lodging industry, they are not charged with tourist taxes, furthering short-term rentals unequal competition.
Like every industry, there are new factors entering into the game. Knowing how they will impact your community is the best way to be prepared for this new trend of short-term rentals. With the growth in this industry, it is no longer an option to ignore the impact. Governments are now working towards regulations to protect communities, members of neighborhoods, and housing availability.