How Will AirBnB and Home Sharing Affect Your Neighborhood?

Regulated Home Sharing Begins in Arizona

A new law aimed at regulating short term rentals in Arizona through venues like Airbnb and others went into effect on January 1, 2017.  Arizona isn’t the first state to try to get a handle on how to regulate the sharing economy. Instead of taking a heavy-handed regulatory approach, the law is allowing open competition aimed at innovating and competing.  According  to Christopher Koopman, a senior research fellow at the Mercatus Center at George Mason University, this model of regulation has the potential to allow a windfall of tax revenue to the state and cities, although it is still too early to tell what to expect exactly.

Concerns About Legal Home Sharing

Executive Director Ken Strobeck of The League of Arizona Cities and Towns and Mark Stapp, Executive Director of the Masters of Real Estate Development program at ASU, shared some of the concerns that were taken into account as the law worked its way through the Legislature last year:

1. Homeowners are concerned that the quality of their neighborhoods will be negatively affected.  Residential neighborhoods will be turned into hotels and party houses.
2. A cluster of short term rentals in one area will change the land use which will change the feel of the neighborhood.
3. There has not been a study of crime rates in a neighborhood in relation to Airbnb and such short term rentals.
4. More strangers would be in the neighborhood.
5. Mark Stapp mentioned that it could impact the affordability of rental housing.

The cities that will be most impacted by the industry are those that have the highest tourist rates and attractions.  Sedona and Scottsdale had ordinances on the local books that prohibited short term rentals.  However, looking over the short term rental industry sites showed a large amount of activity in these cities anyway.  So, the aim is to recognize reality and impose at least minimal regulation.

Compromise in Legislation

As the law went through the Legislature there had to be a compromise.  The main concern is not ruining the character of neighborhoods.  The legislation includes ordinances that have the ability to make sure that the rentals are not a nuisance including regulations on noise, parking, the number of people allowed at the site as well as having a local contact number for the site and not just a phone number in San Francisco.

As far as tax revenues go, short term rentals have never been legally permitted so it is all a learning process.  The law requires that all participants be licensed.  It also requires Airbnb to paying the taxes to the state and not the homeowners.  The tax rate is comparable to transit lodging taxes, which are higher than retail tax.  However, there may be a trade off with more calls for public service and use of public works.  There is also a concern among conventional hotels and an impact to loss of bed tax.

Regulation by Individuals

Something to be aware of is that private regulations including deed restrictions have nothing to do with the state law and can allow individuals to group together to regulate the industry in their neighborhood.

Though there will always be concerns, the overall outlook very positive. Mark Stapp stated that he hasn’t seen anything negative about it and believes it is a good thing.  He says the industry will creative attractiveness to Arizona and attractiveness to the area is always a goal.

What Are Your Thoughts?

To listen to the entire radio interview and view the source click here:  http://kjzz.org/content/415887/new-home-sharing-law-takes-effect-arizona

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4196 E Bonanza Road Gilbert, AZ 85297

$569,900

4 Beds

2.5 Baths

2,257 SqFt

Status Active

MLS # 6772058

Property Type Single Family Residence

Price Type --

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$569,900

2 Beds

2 Baths

1,855 SqFt

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Property Type Single Family Residence

Price Type --

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913 S Del Rio Court Apache Junction, AZ 85120

$569,900

5 Beds

3.5 Baths

3,193 SqFt

Status Active

MLS # 6699419

Property Type Single Family Residence

Price Type --

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4340 E Park Avenue Gilbert, AZ 85234

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4 Beds

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2,556 SqFt

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Property Type Single Family Residence

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29449 N Sorrento Drive Peoria, AZ 85383

$569,900

2 Beds

2 Baths

1,835 SqFt

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Property Type Single Family Residence

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3 Beds

2 Baths

2,035 SqFt

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Property Type Single Family Residence

Price Type --

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5414 N Scottsdale Road Eloy, AZ 85131

$569,900

3 Beds

3.5 Baths

2,709 SqFt

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Property Type Single Family Residence

Price Type --

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22633 W Yellow Bird Lane Wittmann, AZ 85361

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$569,900

4 Beds

2 Baths

1,987 SqFt

Status Active

MLS # 6787326

Property Type Single Family Residence

Price Type --

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$569,900

5 Beds

3 Baths

3,419 SqFt

Status Active Under Contract

MLS # 6782835

Property Type Single Family Residence

Price Type --

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13442 W Blackstone Lane Peoria, AZ 85383

$569,900

2 Beds

2 Baths

1,827 SqFt

Status Active

MLS # 6624856

Property Type Single Family Residence

Price Type --

Like NEW 2021 Built '' Vibrant Situated on an OVERSIZED Lot with N/S Exposure in Award Winning Trilogy at Vistancia. TREMENDOUS Curb Appeal with Mature Lush Desert Landscape, Stone Accent and PAVER Driveway. Backyard with Putting Green .Inside includes Neutral Palette , ALL Tile Flooring along with 9FT Ceilings and Window Treatments T/0. Beautiful Kitchen with Large Granite Island , Designer Backsplash. and Rich Dark Cabinetry. Primary BR with LARGE Closet . BR 2 is Split with South Exposure . Bath 2 with Soaking Tub. Gorgeous Den with Built Ins and French Doors - Would make a Great 3rd BR. Backyard with Expanded Covered Patio , Travertine & Putting Green . Smart Space for extra storage or Office. This Home is in Terrific Condition . Sellers are MOTIVATED . Home is available TURNKEY

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34214 W Sahuaro Street Tonopah, AZ 85354

$569,900

4 Beds

2.5 Baths

2,336 SqFt

Status Active

MLS # 6672281

Property Type Single Family Residence

Price Type --

This stunning property is eligible for a 0% down payment with a USDA loan! Sitting on a 2-acre lot, offering endless possibilities for expansion or additional structures such as a second home or workshop. This home has 4 bedrooms and 2.5 bathrooms. Beautiful kitchen with granite counter tops and open spaces to the living and dining rooms. The master bedroom offers a walk-in shower, private toilet room and a walk-in closet. A beautiful, covered patio and irrigation system was installed on all the plants in the backyard. The house is equipped with ready fast satellite internet. Completely move-in ready. With no HOA restrictions, BRING YOUR HORSES, TOYS, RV'S, ETC!! This home features upgraded foam insulation, Nest smart home thermostat, Trane A/C unit, the 220-volt setup is perfect for a wo

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8304 E Posada Avenue Mesa, AZ 85212

$569,900

4 Beds

2.5 Baths

3,487 SqFt

Status Active

MLS # 6678957

Property Type Single Family Residence

Price Type --

4 spacious bedrooms plus a loft, each equipped with its own walk-in closet for unparalleled storage. Enjoy awesome upgrades throughout, exquisite bathroom vanities and countertops, sleek faucets, a beautifully remodeled master shower, and the added convenience of comfort-height toilets. We continue with the addition of meticulously chosen light fixtures and five stylish ceiling fans, perfectly complementing the tiled flooring and upgraded upstairs baseboards. The kitchen, features refinished cabinets with new hardware, striking granite countertops, and a charming farm sink. Step outside to your own private Pebble Tec pool for endless hours of relaxation and enjoyment. Every room is spacious, separate living room and family room, 2 areas for dining + breakfast bar, granite counter tops and white cabinets, gas cook top, SS appliances. Charming light and bright bay window breakfast nook Amazing walk -in pantry seems endless, with additional storage area. Handy sink in laundry room. So much storage everywhere in this home, with closet after closet, including in loft, and large nicely finished expanded storage closet with light, under the stairs. Sparkling pool makes for at home entertainment and relaxing, easy maintenance back yard with grapefruit and orange trees, and recently replaced drip lines. solar panels for energy savings! So much more!

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