Guest post by Ken Willis, Debordieu Colony Real Estate
With the continued downward economic pressures being placed on the hotel industry and with the baby boomers retiring to their favorite vacation spots, we are just seeing the tip of the iceberg when it comes to government restrictions of the vacation rental industry. Whether it is hotel sponsored legislation or the vocal minority, we as an industry must prepare for the battle that lies ahead.
In New Braunfels, Texas, the local government is trying to limit occupancy in order to address residents concerns about noise and overcrowding. In South Dakota, the state government adopted the 2009 International Building Code. This would reclassify vacation rentals as commercial properties and would require property owners to install sprinkler systems, exit signs and more. On the Isle of Palms, the local city council is trying to limit occupancy of vacation rentals, as well as place limits on parking and other activities.
Many of you participated in the recent Government Issues Committee survey. The results show an overwhelming concern about the growing frequency of governmental restrictions. Almost half of the respondents said that in the past two years, there were significant restrictions put in place that limited their ability to do business. Over half said that in the past either a government entity or a homeowner association had enacted restrictions that restricted their ability to do business. The survey also demonstrated that nearly 70% of the respondents were not aware of the resources that are available to the members of VRMA. There are multiple whitepapers that cover subjects like being a good neighbor, measuring your economic impact and four other critical subjects.
We can all place a big check in the win column along with Florida Vacation Rental Managers Association (FVRMA) who showed the power of an association in battling restrictions. With the help of a lobbyist, FVRMA was able to pass two bills signed into law that reversed a Declaratory Statement by the State of Florida Fire Marshall that required fire sprinklers to be retroactively fitted in most vacation rentals throughout the state. Signed into law by the governor, the laws read "a property owner shall not be required to install fire sprinklers in any residential property based on the use of such property as a rental property or the any change in or reclassification of the property's primary use to a rental property". Funding for this monumental task came from donations from members of FVRMA and vendors like NAVIS and HomeAway who helped in the raising of over $50,000 towards this effort.
The bottom line is that restrictions are an attack on your owner's property rights. To beat imposed restrictions, you should do four things. First, be prepared. Know your rights and the resources that are available to you. Second, make sure you are legally in compliance with all local and state laws. In order to have legal standing and protect your owner's property rights you must comply with all laws and licensing requirements. Three, get to know your competitors and work together to be good neighbors and obey the laws. Offer solutions before one is forced on you. And, fourth, you need to be prepared with economic numbers. Know your value to the community's economy.
If you need assistance with your current situation, or want to help with this fight, please contact your VRMA Government Issues Committee.
