The short answer is YES, but it is complicated. I’m all for regulating this industry but we should probably only do some small changes instead of broad sweeping changes that will hurt the industry.

One thing to remember is that most of the people who manage and own short term rentals in Sioux Falls are local owners who use local contractors and local goods and services. In other words any capital made from these rentals is circulated back into the local economy unlike a franchised hotel.

Minnehaha county has dialed back a bit on their recommended regulations;

Regulations for these short-term rentals would include:

  • A maximum occupancy of no more than three people per bedroom,
  • Requiring a minimum of one off-street parking space per guest bedroom,
  • The properties must be registered with the state as a vacation home,
  • And contact info for the owner/manager of the rental must be both submitted to the county planning department and displayed within the home.

I think two off-street parking spots is plenty. But instead of regulating how many people can stay in a room or how many cars can park there there should be regulations when it comes to registration of the property (state, city and county). There should also be quarterly health inspections, a small registration fee and a BID tax.

The city has just been mulling the idea, but there is talk they want to remove short term rentals from residential neighborhoods. First the obvious, if these are NOT in residential neighborhoods, where would they be? This of course would be an attempt to eliminate the short term rental business in Sioux Falls to delight of the hotel industry.

Short term rentals already have to follow the same ordinances as a homeowner or a long term rental so any other regulations would be above and beyond. But since this is a hospitality industry operating in Sioux Falls there should be a BID tax applied. All the other regulations are simply mushy-mash busy work bureaucrats cooked up.

10 Thoughts on “Should Air BnB (short term rentals) be regulated in Sioux Falls?

  1. Mike Lee Zitterich on March 2, 2023 at 12:17 pm said:

    No. This same concept to regulate home day cares, ruined home day cares nearly making them impossible for a small family to operate a daycare from their homes today. MY mom once had 15 kids to look after in the 1980’s and she did it well, and taught them good morals, values, discipline, and even educated them….I learned how to change a diaper at age 5 thanks to that time period.

  2. Very Stable Genius on March 2, 2023 at 1:36 pm said:

    It’s either residential or commercial. I can’t be both. If you want a decent neighborhood, that is. A shared economy should not mean sharing your nice neighborhood with a diminishing positive future.

  3. Mike Error on March 2, 2023 at 1:54 pm said:

    That first regulation sounds pro-menage a trois. Or, at least tolerant.

  4. "Woodstock" on March 2, 2023 at 2:12 pm said:

    “Say, in French, does ‘menage a trois’ mean shared economy?”….

  5. Steve on March 2, 2023 at 4:25 pm said:

    I spit out my Diet Coke when I read Mike talking about changing diapers. I guess it fits. He’s still full of it.

  6. Speaking of Diet Coke and diapers, does anyone remember Phar-Mor? It was located where Best Buy is now. I once stood in line there to buy diapers for my child. The young woman ahead of me was buying a feminine hygiene product, while the old man ahead of her was buying Depends….. Come to think of it, that location ain’t far from Pizza Ranch:

  7. Fear & Loathing in Sioux Falls on March 2, 2023 at 10:44 pm said:

    Thanks to Mike, the GOP in Pierre next year will enact legislation stating that you have to be at least 11 to change a diaper…. They say you don’t want to watch the process, but that the final product isn’t all bad when it comes to legislation. So, can that be said about diapers, too?

  8. Mike Error on March 2, 2023 at 10:47 pm said:

    Nike owns Converse. I’m still waiting for the Air Chuck Berry RnB.

  9. D@ily Spin on March 3, 2023 at 9:34 am said:

    Regulation and enforcement of AirBNB or VRGO is costly if not impossible. Short term home rentals are a temporary fad like cryptocurrency. It’ll pass once homeowners realize renters cause more damage than there is profit. Spring break parties will prompt civil fines. Neighbors will become vigilantes. It’s not worth it and will fix itself. A few want to feel like entrepreneurs but they’ll eventually grow back into their call center cubicles trying to live on a menial paycheck working for ‘The Man’.

  10. anominous on March 5, 2023 at 9:41 pm said:

    one thing the B0rg skate by on is getting their cube lodge taxed by whoever they are about to assimilate, but i doubt theyd even want to stop by here

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