By Shalini Katessan shalini@mystar.com.my and Santtana Looganaden santtana@mystar.com.my
Homesharing is becoming more appealing to the budget-conscious tourists who tend to favour couch-surfing, or to those looking for a memorable localised experience.
For the property owners, or “hosts,” the appeal lies in the extra income generated by renting out a spare bedroom.
However, some critics are calling short-term rental place “rogue hotels”, because unlike hotels, these places have virtually no oversight or accountability, potentially creating a public safety issue.
In some instances, folks who own or occupy homes next door to short-term homestays are not happy. They resent the constant strangers, noise, and other nuisances associated with living next door to short-term renters who may not abide by the same communal practices.
As a result, short-term rentals have become a contentious issue among some communities.
With homesharing becoming a global trend, here are the responses of some local communities at different parts of the world.
- Some state and local governments are considering legislation that would prohibit advertising multiple short-term listings. For example, New York limits the number of days a property can be rented out each year, each host is limited to one listing, and the host is required to be on-site during guest stays. It is also illegal to advertise a residential rental with three or more units within 30 days.
- In Washington, D.C., where over 200,000 short-term rental guests stayed last year, the hosts are required to buy licenses, and intermediaries are required to collect and remit taxes.
- Virginia recently proposed new rules which would create the first statewide system to collect short-term rental taxes by local governments. But both local governments and hotels have concerns such as apartment owners renting out units of the entire building as short-term homestays.
- In Florida and Illinois, short-term rental guests pay state taxes, while Louisiana has also extended its 4% sale tax to include short-term rentals. Connecticut collects a 15% hotel tax for short-term rentals. Almost 2,000 hosts in Connecticut rent out their homes, and over 50,000 guests have used them.
- Other cities such as Portland appear to welcome short-term rentals, getting in front of the issue by passing rules that required hosts to buy a permit, and in turn, generating about $500,000 annually for the city.