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.