Short-Term Residential Rentals

This guide offers policy recommendations to assist with the drafting of local short-term residential rental regulations. The intent of the report is to balance inclusive opportunities for local wealth creation while protecting public interests, including housing affordability and municipal revenues.

The guide suggests three main areas of focus for policymakers:

• Housing supply and affordability
• Local economic benefits
• Neighborhood quality

Using local examples as illustrations, its policy recommendations include the following:

• Distinguishing this use from commercial hotels and vacation rentals
• Requiring registration and record keeping
• Capping the allowed number of annual rental nights
• Establishing protections and complaint procedures to address crowding, noise, and parking
• Collecting transient occupancy tax

The guide suggests three as-yet untried approaches for cities to further harness this use in addressing local economic issues: raising caps on the basis of financial need, creating a municipally owned home sharing platform, and creating a local universal basic income trust funded by short-term residential rental fees.