ST. GEORGE — Renting out homes, basements and apartments to vacationers is big business thanks to booking sites like Airbnb and VRBO.
In Utah, St. George is a hot spot for short-term rentals in residential areas, but that could be changing soon.
In areas like the Green Valley neighborhood, nightly rentals to vacationers is allowed because of proper zoning, but if you step into a traditional residential neighborhood, the zoning is more restrictive.
"We recognize that we are a destination for vacationers, and so we want to accommodate that the best we can while protecting the integrity of our traditional neighborhoods,” said Marc Mortensen, assistant to St. George's city manager.
Online booking companies like Airbnb and VRBO say they offer residents an "economic lifeline" of extra income, but cities say having vacation rentals in regular neighborhoods is an invitation for problems.
“In just recent weeks, we've had instances where neighbors call and say, 'Hey, there's six, seven, eight cars parked in front of this residence,'” Mortensen said. “We've had a report where there were as many as 40 people staying in one residence, and that has a negative impact on the neighborhood.”
When homeowners rent out basements or entire homes to vacationers, they compete with hotels. That raises questions about the lack of regulations and the collection of tourism taxes.
Kendall Clements of Escape Properties helps homeowners rent out their vacation properties. He hopes more can be done to adapt to the changing marketplace.
“The city of St. George is probably 10 years behind the curve on their ordinance structure," Clements said. “I’m not a fan for every house to be a vacation home. I think that's bad for the economy as a whole. But for those who are currently doing it, if we could license them and start to ensure that we have that tax revenue, I think (the) community would be better off.”
A bill before the Utah Legislature this year sought to loosen restrictions on short-term rentals, but it stalled in the early stages. As for St. George, city officials say they're trying to be responsive, even changing zoning in a few areas, but the law will be enforced.
“The maximum penalty for a short-term rental is class B misdemeanor, so we take this very seriously and we hope others do as well,” Mortensen said.
Email: legan@deseretnews.com