Wednesday, June 1, 2022
Stop the STRs?
Posted By Babs De Lay on June 1, 2022, 4:00 AM
It's a simple fact that resort towns have a transitory and seasonal work force. And, if it's a destination resort like Park City, there's also going to be a need for vacation housing for tourists.
A recomendation was made at the May 11 Summit County Council meeting that a moratorium be put in place to stop permitting short-term rentals (STRs) for the next six months, and a whole lot of folks want to chime in on this idea.
Realtors feel this temporary halt could drastically impact sales on properties that are currently under contract (sale pending). Almost 64% of pending sales in the MLS in Summit County right now allow for short-term rentals. So, imagine how those buyers with a pending purchase contract will react when they learn about a moratorium on STRs. Any plans they might have had for passive income from an STR on the property would be a no-go because they wouldn't be able to get a permit.
Even though more than 60% of the current listings on the market in Summit County allow for short-term rentals, buyers would be unable to get licenses should the moratorium pass.
And as tourism is the lifeblood of the Summit County economy and infrastructure, Realtors and investor clients strongly oppose the STR cap.
We Realtors are advocates for private-property rights, in that owners of a home, condo, rental property or business property have the right to do as they please with their property if the use complies with local zoning use and building laws.
Those opposing the cap believe it will have unintended consequences such as reduction in property values, migration of tourism to unincorporated areas in the valley, underground/illegal vacation-rental operations and reduction in fundamental services.
There are plenty of Realtors residing in Summit County who are also business owners and who care about the community. They also might have rental properties of their own.
The Park City Board of Realtors doesn't believe there is data to support a cap on vacation-rental permits and that there should be an extensive, comprehensive economic impact study prepared and presented to the public with plenty of time for thorough review prior to making a decision on STRs.
Advocates of the short-term rental cap believe the growing number of Airbnbs and Vrbos limit the amount of rental inventory available for workers who need annual or seasonal rentals.
Advocates of the cap further argue that STRs enrich landlords with high nightly fees and make housing in the area less affordable. In so doing, STRs increase the gap between the rich and poor, making inequality worse.
The Summit County Council met at the end of May to discuss Ordinance 943 to place a six-month moratorium on permits, but it was not voted on.
Another public hearing is planned for June 1 in Coalville to further discuss the matter.
About The Author
Babs De Lay
A full-time broker/owner of Urban Utah Homes and Estates, Babs De Lay serves on the Salt Lake City Historic Landmark Commission. A writer and golfer, you'll find them working as a staff guardian at the Temple at Burning Man each year.
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