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Tuesday, July 22, 2014

How Do Short Term Rentals Affect Subdivisions In Bear Lake?

Over the years we  have heard both pro and con about allowing short term rentals in the subdivisions of the Bear Lake Valley.  Some CC&R allow them and some do not.  Positively, it makes so that larger homes can be built in the subdivisions since they can generate income and so we are seeing homes with 10 bedrooms and 10 bathrooms worthy of Architectural Digest being built on the hills around the lake. And it provides "hotel" space for recreational visitors who are a major part of our economy.  If the cabins are used as "hotels" they also pay a resort tax and sales tax.

Negatively, those same bedrooms often house 20 to 30 people with ATV, boats and cars which park on common streets and block traffic.  These "hotels" are often built as private homes without being built to commercial fire and building codes.  Renters often do not know or observe the firework or fire pit restrictions on our dry hillsides.  Owners are often out of the county or state and cannot be contacted to control noise or dangerous situations.

Sweetwater Hillside CC&R prohibit commercial use.  The Bylaws prohibit rentals.  This issue will be addressed at the annual meeting.  Other subdivisions are faced with similar issues.  RCTonline would like to hear from people who have opinions on how short term rentals do or do not affect them.  Editor

1 comment:

JSSox said...

I want to simply address some of the "negatives" put forth about STRs by the editor (I still love you Bobbie).

Garden City has done a fairly good job of creating an ordinance to address these issues and could be looked at as a guide of a way to regulate STR activity to help keep the peace (if an area chooses to allow STRs). While I still feel some of the current STR ordinance is unfair and needs revision, that is a whole other topic for another day.

The most important thing I would like policy makers to remember is that ordinances should be fair compared to similar activities. There is very little difference between STR and Long Term Rentals (LTR), and again very little difference between STR and homeowners living in a home. The use of the home is not changing. The home is a private place to come home to and prepare meals, sleep, and relax. I believe this principle is why these homes are not required to be built to commercial fire and building codes. I know someone might say "well isn't that the same thing a hotel room is used for?" The difference is that a hotel is made up of several different unrelated groups staying in a common building that share walls. A private home at any time can be changed (and often do) from STR to LTR or to home-owner personal use.

In the Garden City STR ordinances is says those operating STRs (in Garden City) must inform cabin guests that they cannot park on common streets. The ordinance also requires that there be a minimum number of parking spots on the property to allow for sufficient parking for the max number of occupants.

The ordinance also requires a 24 hour contact that lives within 15 minutes of a property to control issues such as noise or a dangerous situations.

I would also argue that STRs guests do often know and observe fire restrictions, at least those STRs operated through a property management company. While it is possible that SOME do not know or observe these regulations I believe that 2nd home owners and/or their non-paying guests are equally guilty and therefore we should not be pointing fingers at STRs.

As for an HOA prohibiting STR because the CC&Rs says it "prohibits any commercial trade or business from being conducted on any Lot", I would think this means you are also not allowed to rent out your home long term. Perhaps it also could be interpreted to mean you are not allowed to buy or sell homes in that area. That sentence could be interpreted however someone wants. So as an HOA it should probably be decided on and then put explicitly in the CC&Rs (which it kind of looks like that may have happened already because it says "This is interpreted to include rentals" which could be clarified some.) Just like any other good governing body I think the people should be able to decide. (Side note: I have no opinion about whether or not STRs should be allowed in various HOAs including Sweetwater. If the homeowners don't want STRs then they can come together and decide that. Isn't that what HOAs are for?)

However, I don't feel STRs is conducting commercial activity on a lot. A good comparison is that State law prohibits commercial activities on state lands (like Bear Lake beaches below the high water mark), but boat rentals occur here, don't they? No. All money exchanges take place off of state owned property but the use of the boat happens on the state owned property. Similarly STRs happen the same way.

Of course STRs greatly positively affect me personally as it provides for me the ability to provide for my family, but I also think it is a huge positive for the economy of Bear Lake. The standards of living for everyone in the valley will rise as more STRs are conducted.