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ST. GEORGE — Renting out homes, basements and apartments to vacationers is big business across the globe thanks to booking sites like Airbnb and VRBO. St. George is a hot spot for short-term rentals in residential areas, but that could be changing soon.
In areas like the Green Valley neighborhood of St. George, nightly rentals to vacationers is allowed because of proper zoning, but if you step into a traditional residential neighborhood, the zoning is more restrictive.
"We recognize that we are a destination for vacationers and so we want to accommodate that the best we can while protecting the integrity of our traditional neighborhoods,” said Marc Mortensen, assistant city manager.
Online booking companies like Airbnb and VRBO say they offer residents an "economic lifeline" of extra income, but cities say having vacation rentals in regular neighborhoods is an invitation for problems.
“We've had, in just recent weeks, we've had instances where neighbors call and say 'Hey, there's six, seven, eight cars parked in front of this residence,'” Mortensen said. “We've had a report where there were as many as 40 people staying in one residence and that has a negative impact on the neighborhood.”
Homeowners compete with hotels when they rent out basements or entire homes to vacationers. Questions arise about the lack of regulations and the collection of tourism taxes.
Kendall Clements of Escape Properties helps homeowners rent out their vacation properties. He hopes more can be done to adapt to the changing marketplace.
“The city of St. George is probably 10 years behind the curve on their ordinance structure," Clements said. “I’m not a fan for every house to be a vacation home. I think that's bad for the economy as a whole. But for those who are currently doing it, if we could license them and start to ensure that we have that tax revenue, I think us as a community would be better off.”
A bill before the Utah Legislature this year sought to loosen restrictions on short-term rentals, but it stalled in the early stages. As for St. George, the city says it's trying to be responsive, even changing zoning in a few areas, but that it will enforce the rules.
“The maximum penalty for a short-term rental is Class B misdemeanor, so we take this very seriously and we hope others do as well,” Mortensen said.
The short-term rental battle is brewing in cities nationwide and both sides are paying big money in an attempt to shape future laws.
Contributing: Xoel Cardenas
