Population booms caused by annual events add to STR challenges in host communities

27.11.2023 - 09:47 / traveldailynews.com

While the crowds bring their wallets and appetites, giving local economies a boost, they also create challenges. Visitors have to sleep somewhere, and short-term rentals (STRs) have become increasingly popular in the era of Airbnb and Vrbo. For local hosts, who transform just about any rentable space to supplement their income, the events are an opportunity.

The summer festival season is officially underway. For host communities, this means carefully managing a momentary population boom that can strain municipal resources and try the patience of residents.

Festivals such as Bonnaroo, Lollapalooza or the legendary Newport Jazz Festival are among an extensive list of events that draw big crowds into communities. Just about every month of the calendar features some big annual event, starting with New Year’s Eve at Times Square, continuing with the Super Bowl in February, followed by spring events such as the Kentucky Derby in Louisville and the Indianapolis 500. Then come the summer festivals.

The short-term population booms can be substantial. Sturgis, SD, a town of about 7,000 residents, draws more than 400,000 people to its annual biker rally in August. Park City, UT, sees its population of about 8,500 explode to more than 100,000 during the Sundance Film Festival.

While the crowds bring their wallets and appetites, giving local economies a boost, they also create challenges. Visitors have to sleep somewhere, and short-term rentals (STRs) have become increasingly popular in the era of Airbnb and Vrbo. For local hosts, who transform just about any rentable space to supplement their income, the events are an opportunity.

But for neighbors and the community at large, it’s not so simple. STRs create plenty of controversy around the country. Hosts don’t always bother complying with vacation rental regulations and taxation obligations. Neighbors often complain about increased traffic, noise and excessive partying.

STRs also can be difficult for municipalities to track for the purpose of enforcing vacation rental laws and taxation. Noncompliant STRs have the potential to cause the most problems and generate no tax, license or registration revenues. Some local authorities work with Airbnb and Vrbo to enforce regulations and collect taxes.

For example, Maui County in Hawaii now requires hosts to submit government-issued Tax Map Key (TMK) numbers indicating property locations before listing them on the online rental platforms. Maui also has prohibited STRs in residential areas. In San Diego, new rules went into effect May 1 requiring STR owners to complete a Short-Term Residential Occupancy (STRO) application process and comply with all host requirements before they can rent their properties.

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