By Melissa Rosequist | Scottsdale Independent
The longer short-term rentals remain free to exist mostly unregulated by local government, home values within Scottsdale neighborhoods are feeling the impacts, residents, Realtors and elected officials agree — but it’s unclear how exactly they’re being impacted.
Pinpointing exactly how much Scottsdale home values have suffered since short-term rentals moved in has been challenging, one local Realtor says.
“Does being located next to a nuisance or noise issue affect the property value? For a lot of buyers it will, but then there are some buyers that they may find some advantage — or maybe someone will want to buy that property for a rental themselves will find it as an advantage, just like McDonald’s and Burger King being across the street from each other,” Scottsdale Realtor Blondie Sherman said. “I think it impacts neighborhoods more than specific properties.”
Short-term rentals, also known as vacation rentals, have been a booming business within the Scottsdale area and other desirable Arizona neighborhoods for the past several years — to the chagrin of the other homeowners nearby.
Signed into law in 2017, Senate Bill 1350 restricted the control local municipalities had over short-term rentals — giving the green light to allow homes to turn into Scottsdale hostels.
Proponents of short-term rentals point out the benefits of local business, welcoming visitors to Scottsdale and creating a competitive marketplace.
Meanwhile, the opponents of short-term rentals report problematic homes where parties are hosted, conditions are unsafe and disruptions to the family neighborhoods run rampant.
Through the years, tweaks have been made by the state Legislature to allow cities to have contact information for all short-term rentals, and police are authorized to ticket unlawful parties.
Neighbors say it isn’t enough.
Before COVID-19 disrupted what was to be the 2020 legislative session, some state legislators were drafting potential new rules to seek changes to short-term rentals. One legislator, Rep. Kate Brophy-McGee, R-Dist. 28, was a cosponsor on a bill gaining steam among lawmakers. Ms. Brophy-McGee was voted out of office in November.
Fellow state representative Aaron Lieberman says while Ms. Brophy-McGee won’t be leading the change for short-term rentals, her predecessor Christine Marsh is passionate about the same issue.
“I think there’s a lot of other senators and representatives who are increasingly hearing from their constituents and are committed to really fighting on it,” Mr. Lieberman said.
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