What Are Vacation Rentals And Why Are They Bad

by CathyG on December 21, 2010

There’s a lot of press about vacation rental property owners who had to follow new laws that limit their earning opportunities. But few articles address the damage this industry inflicts on neighborhoods, condo buildings and ordinary people who just want a peaceful place to live. That’s why I created this blog website: as a place for people to get information, share information and document problems with vacation rentals.

A transient hotel is not the same as a home. If you haven’t been there, you won’t appreciate the difference.

Vacation rental property owners feel entitled to earn money at the expense of their neighbors. They ask their neighbors to give up to privacy, comfort. safety…and that indefinable feeling of, “This is my neighborhood.”  They even ask them to give up property values because it can be harder to sell a home that’s near a vacation rental.

What results is what economists call a negative externality. “In economics, an externality or spillover of an economic transaction is an impact on a party that is not directly involved in the transaction.” (Source: Wikipedia)

Other examples of negative externalities include air pollution,   water pollution, and illness from secondary smoke.  Typically governments step in to protect victims of negative externalities because their interests conflict directly with those responsible for the conditions.

We don’t allow companies to dump toxic waste into public rivers and seas anymore. They can’t plead hardship. They can’t justify this action by saying they need to make money or they create jobs. So why should we allow  property owners to turn hordes of strangers loose in a neighborhood, with no background checks and no supervision? They’re creating a toxic, unhealthy and unsafe environment…and crying “foul” when somebody points out the problem.

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Can it get more bizarre than this?

A VR proponent lists reasons that local communities oppose vacation rentals. For example, she says, vacation rentals drive out the locals. They don’t like visitors who have no stake in the community and don’t vote.

While VR owners pay property taxes, they often don’t pay hotel occupancy taxes, a point ignore by the author.

Read the story here.

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Historic home used for vacation rentals

May 14, 2011

OK, here’s another pathetic cry for help. The owners of a historic home cry “Foul!” when they can’t make their $11,000 mortgage payments. They get up to $800 a night from rentals. So these poor pathetic people somehow managed to buy a home for almost $2 million. They spent another $250K to upgrade. They weren’t [...]

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And even in Ripon, WI

May 13, 2011

Here’s an article showing frustration of neighbors in Ripon, WI: the city council doesn’t want to collect taxes. This pattern is familiar. Why are city councils so afraid to take action? Learn more here.

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Problems with Vacation Rentals in Austin, TX

May 13, 2011

Apparently the VR problem exists in the Lone Star State. I got a call from someone who advised me that Austin is the home of Homeaway – n organization dedicated to spreading home rentals. I’ve commented on Homeaway here in this blog and also made comments on their videos on Youtube, sometimes using a different [...]

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Police become security force for vacation rental guests

March 30, 2011

One thing that shocked me: police are used for routine noise problems with vacation rental guests. Even the police accept the idea. So say I hear a ton of noise from an apartment. I can’t call the Homeowners Association. They don’t want to hear about it. The vacation rental owners have deep pockets and an [...]

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VRMA disrespects neighbors

March 17, 2011

I’m working on article on vacation rentals so I checked with VRMA – the trade association of vacation rentals. What, I wondered, is the code of ethics for vacation rental agency managers? Here’s what they are supposed to do: – Not  get in the way of other vacation rental agencies –Not steal from the guests [...]

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“Vacation rentals use the police as their front desk”

March 15, 2011

If you’re thinking of renting a vacation home, you may be delighted to find low rates and comfortable surroundings.  But you need to be suspicious. If you find a 45″ inch plasma television for $200, wouldn’t you be suspicious? Why are vacation rentals so much cheaper? You may think, “Vacation rentals just don’t offer the [...]

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You can keep out an Alzheimer facility … but not a vacation rental?!

February 21, 2011

In this  article from the New York Times, a Minnesota neighborhood fights to keep out an Alzheimers facility. Just imagine if one neighbor wanted to set up a vacation rental. The headlines would look different and the neighborhood would have  a harder time. At least an Alzheimers home has a higher purpose. The residents are [...]

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Vacation rental property owners fight to hold on to illegal income

February 11, 2011

Another story – should be familiar by now – about the way vacation rentals pit “neighbor against neighbor.”  See the story here. In this case, the property owners – who were illegally using homes for rentals -  actually sent out threatening letters to their neighbors, seeking to protect their interests. Notice the biased reporting, focusing [...]

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February 5, 2011

Seattle celebrates Neighbor Appreciation Day on February 12. Meanwhile current state laws make it easy to destroy a neighborhood (which could be a condominium complex) single-handedly with just one vacation rental. Here is an example based on thousands of true story. Harry buys a home for a family residence.  His neighbor Vince buys a “home” [...]

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