Key Takeaways for Local Jurisdictions: Insights from the State of the Short-Term Rental Industry Report

The 2024 State of the Short-Term Rental (STR) Industry Report provides critical insights for local jurisdictions and town boards, particularly for those in the Finger Lakes region of Upstate New York. As the popularity of STRs maintains the preferred accommodation of choice, it is essential for local officials to understand both the opportunities and challenges that these rentals present to communities. Below are the key takeaways from the report that are important for our Finger Lakes Region.

1. Economic Impact and Support for Local Businesses

STRs significantly contribute to local economies, with over 94% of operators supporting locally owned and operated businesses through purchases and referrals. In regions like the Finger Lakes, known for their wineries, scenic beauty, and small-town charm, STRs can boost local tourism by attracting visitors who spend money at restaurants, shops, and attractions. This economic activity can be an asset to local economies, especially in smaller towns where tourism might be a key revenue source. They expand the region’s capacity to welcome visitors and account for $4.4 billion in visitor spending and 53,911 jobs supported by tourism in the region in 2023.

2. Balancing Tourism and Community Needs

While STRs are beneficial economically, they must be managed to maintain community harmony. The report highlights that effective nuisance prevention—covering issues like noise, parking, and waste management—can enhance community relations. For the Finger Lakes, hosts can communicate the expectations of where they are staying, expected house rules and good neighbor policies before booking and before arrival to set the tone for their vacation.  Additionally, providing the guests and neighbors with local contacts for complaint handling and communication, will be crucial. This proactive approach can prevent potential conflicts between STR operators and residents.

3. Addressing Housing Concerns

The report notes that affordable housing shortages are a common concern among local governments, with factors like high real estate values and construction costs being primary drivers. While STRs are often cited as contributing to these shortages, their impact is relatively minor compared to broader economic forces. However, for regions like the Finger Lakes, where there may be a limited housing supply, it is essential to balance the development of STRs with affordable housing initiatives. Strategies such as favorable zoning policies for new housing developments and incentives for affordable housing projects could help mitigate any negative impacts of STR proliferation. While STRs’ effect on housing is more pronounced in tourism hot spots within destinations, factors other than STRs are responsible for the lion’s share of driving up prices and reducing housing availability across communities. For a comprehensive analysis on this position, please refer to Rent Responsibly’s 'State of the Short-Term Rental Industry Report.

4. Effective STR Regulations and Enforcement

Nearly half of the jurisdictions with existing STR ordinances see the need for modifications to improve compliance and enforcement. Key components of effective regulation include permit or license requirements, local responsible party mandates, and parking management policies. In the Finger Lakes, where the tourism landscape is diverse—from rural areas to lakefront properties—tailoring regulations to different market types and ensuring they are well-publicized and enforced will be vital for success.

5. Engaging with STR Operators and Community Stakeholders

The report underscores the importance of involving STR operators in the regulatory process. In the Finger Lakes, fostering a collaborative approach between STR operators, residents, and government officials can lead to more effective and accepted policies. This engagement can include public forums, surveys, and advisory committees that allow for input from various stakeholders, ensuring that regulations are balanced and equitable. Join FLXVRA today to ensure your voice is heard and help shape the future of vacation rentals in our community!

6. Leveraging Technology and Data

A major challenge cited in the report is the lack of accurate data on the number and location of STRs. For the Finger Lakes region, utilizing technology for better monitoring and data collection can enhance regulation enforcement and policy development. Implementing systems that track STR listings and guest activities can help local governments maintain oversight and respond swiftly to any issues that arise. FLXVRA member advocates have exclusive access to critical data and strategic contacts, enabling them to harness essential insights and drive innovative solutions for our community.

For local jurisdictions in the Finger Lakes, the insights from the 2024 STR Industry Report provide a roadmap for maximizing the benefits of short-term rentals while mitigating potential downsides. By adopting a balanced approach that incorporates robust regulation, community engagement, and data-driven decision-making, towns and municipalities can ensure that STRs contribute positively to the region's economic and social well-being.

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