Since 2011, Bob and Marlene McEldred have stayed in the same vacation rental in downtown Prescott because of its home-like environment.
“You could feel like it was your home away from home,” said Bob. “We just felt so comfortable. It was very relaxing and very welcoming. It’s a really adorable unit, everything you need,” said Marlene.
They ended up buying a house in Prescott because of their positive experience.
Vacation rentals are becoming a popular tool for travelers who want more space, have the option to cook their own meals, and want to save money. With more than 136 listings on VRBO.com in Prescott alone, homeowners and investors are clearly taking advantage of the growing trend of a “shared economy,” like ride-sharing companies such as Uber or Lyft. There are quite a few options to advertise their vacation rentals as well, such as Airbnb, VRBO and HomeAway websites.
This year, Yavapai County implemented a special use permit that vacation rental owners can apply for on a case-by-case basis. County resident Layne Longfellow has a house two-and-a-half miles from downtown Prescott and was one of the first to be granted the county’s special use permit in March 2015. He pays a 6.23 percent sales tax to county and state.
“They’re getting a private home, not a commercial establishment, personal attention and freedom to come and go as they choose,” said Longfellow. “They’re traveling, but they’re at home. That’s the secret – this feels like home to people.”
But vacation rental owners in the City of Prescott who are looking to provide that “home away from home” are faced with a challenge. According to Prescott City Code, short-term rentals of 30 days or less have to occur in commercial districts. They cannot be in single or multi-family zoning districts because of the length of occupancy, says Catherine Sebold, communications and public affairs manager for the City of Prescott.
There is no process currently in place for vacation rentals to apply for a conditional use permit, although Sebold said, “Further review of code compliance issues related to short-term rentals is a part of the city’s fiscal year 2016 work program.”
Meanwhile, the vacation rental owners are operating in violation of the code while paying a transient tax of five percent for rentals under 30 days, and a sales tax of two percent for rentals longer than that.
A group of vacation rental owners has hired attorney Jeff Adams to proactively approach the city for a process that would help legitimize their businesses, such as an addendum or legal clause to apply for conditional use permits.
“We are looking for a mechanism for an exception,” said John Smith (not his real name). Smith prefers to remain anonymous as the city has approached other vacation rental owners after complaints were lodged, asking them to cease and desist.
Margo Christensen, vice president of marketing and public relations for Ponderosa Hotel Management Services, has been in the tourism industry for 30 years in Arizona. She also serves on the board of directors for the Arizona Lodging and Tourism Association. Christensen says that her industry started noticing vacation rentals five years ago, and there has been an increase in usage with Airbnb in the last couple of years.
Christensen cites safety and security regulations such as fire-prevention sprinkler systems, pool lifts, ADA requirements for a certain number of rooms and health code permits if serving food.
“We’re not too worried about them as competition. Our concern for them in the industry is regulation and that they follow the same taxation rules,” she said. “We’d like a level playing field regarding policy and regulation.”
“I don’t mind regulations that require us all to maintain a standard of care. It keeps a good check and balance for the neighborhood,” said vacation rental owner Lisa Chambers (not her real name). Chambers owns two vacation rental homes, allows pets, rents for a minimum of three nights and has an age requirement of 25 years old.
“We’re happy to work with the city coming up with some ideas to be able to do what we want to do. It’s a good business for us and also a good business for the city,” continued Chambers, who recommends local restaurants and shops to her renters. “There are so many good reasons to have vacation rentals. It would be hurtful to the community to shut them down.”
Smith would agree with city regulation on noise limitations, parking and eliminating nuisances or disturbances. “The strong majority of us want to do it professionally as a business, and have the people have a great experience,” he said.
“Vacation rentals do boost tourism and in Prescott tourism is highly desirable. There needs to be more education on the good that they can do,” said Harry Brown, who has been renting his house since June 2013. Eventually, he and his wife hope to move back into the house. Brown is hoping that the city would allow vacation rentals without placing too many restrictions on them.
Brown also mentions that many people, like the McEldreds, end up moving to Prescott after staying at a vacation rental.
“We’re really like ambassadors of Prescott,” said Smith. QCBN
Written by Elizabeth Hellstern
Leave a Reply