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York City may book an additional 2.2 million nights this year at $ 380 million .
Many California cities have also recently implemented new short-term rental laws . Although their details vary , many require that a rental be the owner ’ s primary residence . Some cities now restrict how many properties one owner can rent out and require hosts to pay additional taxes , which they may pass on to guests .
Other new rules affecting travelers will also likely limit the number of short-term rentals available :
• In Los Angeles , hosts renting their property for fewer than 30 days can only rent for up to 120 days per year .
• In San Francisco , hosts not present in the unit during a guest ’ s stay can only rent for 90 days per year .
• San Diego now requires a short-term rental license capped at 1 % of the housing stock ( except for Mission Beach ).
Many other U . S . cities are considering implementing , or already have implemented , similar regulations . Even the small city of Bangor , Maine , recently adopted similar shortterm rental regulations , which , among other changes , restrict the number of permitted units to 1 % of the city ’ s housing .
Henry says many travelers are realizing how expensive the short-term vacation platform bookings have become : “ They used to be less expensive , but now we ’ re seeing that a hotel room is the same price or even less because of the fees and the cleaning costs of short-term rentals . They cost more than a full-service hotel room now .”
She also pointed out that hotels offer services and benefits that other booking platforms don ’ t .
“ Hotels have room service , spas , swimming pools , a concierge . And when you rent an Airbnb , you might not know who else has the key . The list of pros of staying in a hotel versus an Airbnb goes on and on ,” she said .
Henry says advisors should also keep in mind that more hotel brands are accommodating what some people look for in an Airbnb-type stay . “ For instance , different brands are now building some of their hotels with small kitchenettes ,” she said .
Thomas Carpenter , a lawyer in private practice and co-owner and travel advisor at Huckleberry Travel in Brooklyn , New York , primarily serves premium luxury clients with cruises and FIT travel . He says that these
new regulations remind travel advisors of the importance of booking properties with disclosed ownership .
“ When a customer books an Airbnb or VRBO , you don ’ t know who the owner is ,” he said ; therefore , there ’ s not always straightforward recourse if there ’ s a problem . “ Consumers are becoming aware that they are better off booking a hotel where there ’ s a front desk and other resources available if something goes sideways .”
Henry agrees with the importance of knowing there ’ s a company behind a hotel room , so if something goes wrong , there ’ s a known entity to approach .
“ I think Airbnbs will continue to be around for longer-term use — three and six months — and for corporate travelers and people who need temporary housing ,” said Henry . “ But I do think for vacations , it ’ s slowly fading away .”
Bottom line : It ’ s critical for advisors to be aware of the current regulations surrounding short-term rentals in the cities and states their clients will be traveling to . And remember : as regulations continue to change , there ’ s always peace of mind in booking hotels to avoid the risk of certain rentals not being up to date with these new policies .
SUMMER 2024 / THE COMPASS / 21