8 Ways short term vacation rental impacting the communities

short term vacation rental

Short-term vacation rentals have been in many controversies since the start of their existence ten years ago and have been growing tremendously ever since. Short-term vacation rentals are under the radar less. Still, there are so many ways short-term rentals are impacting communities. 

If you have a short-term rental, it provides you with much flexibility. Every decision would be up to the owner. They can adapt according to the nightly rates depending upon the time of the year, kind of property, and rules in the city. The minimum night stay for higher demanded dates like the weekends can be raised. 

When renters go in & out, the small repairs can turn into big problems. You will have a cleaning crew in the unit every few days, so it is much easier to keep an eye on things and take care of issues. Nothing can guarantee that your tenants will take care of the investment. Still, this option allows you to gain more control over cleaning, preventative maintenance & damage mitigation. 

Many Vacation rental apps provide convenience & ease to modern travelers who want to stay at a place far away from home which feels like home. Make sure to read this blog until the end to know how short-term rentals impact the communities.

1. Positive Economic Impact

Short-term vacation rentals can provide a positive economic effect on a city or a country in so many ways. They can offer cities an additional source of income through their tax revenues. On the other hand, they can also impact the community as the guests would spend on restaurants, museums & bars. This could also mean that this can help residents have an additional source of income or assist young families in going on a holiday while retirees are at home. We know that there would be positive economic growth due to short-term rentals. 

2. Less Long-Term Rentals Available

The scope in which short-term vacation rentals have been operating is ever-growing and not only designed for large urban areas only. Over 100 unique short-term vacation rentals spread across more than 1500 cities. As short-term rentals are located in residential areas, tourists use up that space that can be otherwise used to live by renting out short-term vacation accommodation. This effect is especially strong in prominent identities already facing problems with affordable housing. The scarcity this creates can contribute to increasing rental and housing prices. Apart from these major cities, many smaller coastal towns express concern about this issue. 

3. Neighborhood Changes

Living next door or being close to a short-term vacation rental can be life-altering. Tourists generally rent the accommodation only for some days. Hence, neighbors see new people coming and going out every few days, especially if the density of short-term rentals in the area is high. Complaints about parking issues, noise disturbance, and trash worry the local government. 

Residents also worry about the arrival of short-term rentals in the neighborhood because they think it will change the quality of life in the area. 

This generally leaves the local government with the difficult task of regulating short-term rentals in a way that they secure neighborhoods while balancing a homeowner’s property rights.

4. Increased Tourism Activity

Airbnb & other short-term vacation rental platforms are a way to increase the local tourism sector. The advantage of these rentals is that less popular destinations become attractive with the coming of short-term vacation rentals. 

. Cities that have an established tourist industry benefit from these short-term rentals. 

5. Unfair for Traditional Lodging Partners

The argument has a negative side: short-term vacations are considered disruptive for traditional lodging partners. The hotel industry thinks that the business models of short-term vacation rental platforms offer unfair economic advantages in two unique ways. The first point is that short-term rentals do not have to pay for any staff. The vacation rentals then allow lower rates when compared to traditional tourist accommodation. A second factor is that short-term rentals are usually not charged with tourist taxes, which is unfair for traditional lodging partners. Many hotel booking apps are there but cannot keep up with the short-term rental competition.

6. Missed Tax Revenues

Short-term vacation rentals are not taxed by many cities’ local governments and miss out on millions of dollars. If short-term vacation rentals are regulated, local governments can increase their revenue through permits, taxes & business licenses. 

7. Diversified renter pools

Due to the quick turnover in short-term vacation rentals, you will also enjoy a diversified renter pool for short-term rentals. This can also mean you will get a higher rental income from short-term rentals than traditional 12 month-long rentals. Unlike long-term leases, short-term leases guarantee that residents will pay rent fully and on time. 

This can be especially true if the unit is being rented several times in a month. There can be multiple short-term rental investment models to maximize occupancy rates. Whether you have a new development you are trying to lease up or an existing building with several vacancies, renting out a unit short-term can increase NOI & value of the property. 

 8. Early entry into an emerging market

Short-term rentals have not been a new concept; the way the industry gets to them is rapidly evolving. Short-term rentals influence both hospitality & multi-family industries. 

The way we live & travel is at an exciting point of transformation. Modern residents choose the high-touch service hotels to provide, and everyday travelers prefer lodging accommodation that makes them feel at home. As the recent work from home trend has been shown, many workers can now turn this into a lifestyle. It is time to enter the emerging short-term rental industry. 


Real estate investing is all about maximizing the ROI, and short-term rentals have the potential to be as lucrative as they can be. Rent for short-term rentals can be about 2 – 5 times what the same unit would be rented for as a long-term rental. 

It is imperative to know how short-term rentals are impacting your community. Even though this accommodation has substantial economic benefits to communities, it puts pressure on accommodations and the communities industry when left unregulated. With the rapid growth of short-term vacations in every community, ignoring the impact is no longer possible. Local governments must work towards effective regulation to protect communities, neighborhoods, and character. Short-term rentals can be a great source of additional income for the government when regulated to get tax revenues. These points prove that short-term rentals are an integral part of society that must be regulated.

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