Post by High Priestess on Mar 28, 2016 20:41:23 GMT
See the article:
www.duluthnewstribune.com/opinion/local-view/3995625-local-view-renting-space-your-home-not-criminal
Last summer we were thrilled to be able to purchase our first home in Duluth. With a new mortgage to pay and a list of looming home-improvement projects, we decided to take advantage of an unused bedroom in our home. We offered the space for rent through the Airbnb website, having stayed in such rentals ourselves while traveling. We were pleasantly surprised at the demand for this service.
We didn't realize we were breaking the law. We stopped accepting bookings once we discovered Duluth had a moratorium on new licenses while it developed a policy for this type of short-term rental. We've since been attending public meetings, and we commend city staff for their work on this issue.
But we find 2 problems within the proposed “home share” ordinance that’s emerging, and we strongly suggest a couple of amendments.
First, fellow Duluthians should know that, as currently written, the home share ordinance would criminalize renting out a room in your home for the weekend of an event like Grandma's Marathon. In order to comply, you would need to get a home inspection and an operational permit. Final numbers haven’t been approved by the Duluth City Council, but that cost has been proposed at $275 — plus a $200 licensing fee and applicable taxes
(11.875 percent). Then you could legally host guests for just a night or two.
People who rent out space in their homes during the overbooked weekends of celebrated local events are not criminals. They should not be expected to pay exorbitant fees and clear high hurdles just to offer such a simple service to the city and its visitors.
The federal government recognizes limited short-term rental as an accepted, noncommercial, residential use. If you rent out space in your home for 14 or fewer days annually, the IRS does not tax the proceeds. This seems a sensible distinction, and we believe the home share ordinance should only apply to those renting space in their homes more than several days per year (either 14 days as per the IRS rules or seven days, as currently codified in Duluth's rental housing regulations).
Second, we believe the licensing fee for home shares should be reduced to $50. The new policy is supposed to "level the playing field" between various short-term rentals, including vacation rentals and bed & breakfasts. But the proposed fee structure unfairly would burden home share-type licensees. The home share license would cost nearly twice as much as vacation rental licenses ($675, renewable every six years, or $112.50 per year).
We're not running a major business; we're simply earning a bit of extra income to help pay the mortgage. The approximately $1,000 we cleared by hosting 11 stays through Airbnb pales in comparison to the $600 to $2,500-plus weekly profits of current vacation rentals listed on VRBO.com. A $50 annual fee seems far more sensible for home share rentals and has been adopted successfully by cities like Nashville, Tenn., and Galveston, Texas.
We've had wonderful experiences hosting guests through Airbnb. Many of our guests told us they wouldn't have come to Duluth if our space hadn't been available (either because they couldn't afford a $200 hotel room or because hotels were full). Several travelers who stayed with us said they preferred home share rentals for the homey atmosphere and insider advice on local businesses and activities.
We love Duluth and enjoy being ambassadors of this city. We hope Duluthians like us can resume legally hosting guests with sensible requirements and reasonable fees. We urge all local residents with an interest in this matter to contact their city councilors and encourage them to apply these amendments to the proposed home share ordinance.
www.duluthnewstribune.com/opinion/local-view/3995625-local-view-renting-space-your-home-not-criminal
Last summer we were thrilled to be able to purchase our first home in Duluth. With a new mortgage to pay and a list of looming home-improvement projects, we decided to take advantage of an unused bedroom in our home. We offered the space for rent through the Airbnb website, having stayed in such rentals ourselves while traveling. We were pleasantly surprised at the demand for this service.
We didn't realize we were breaking the law. We stopped accepting bookings once we discovered Duluth had a moratorium on new licenses while it developed a policy for this type of short-term rental. We've since been attending public meetings, and we commend city staff for their work on this issue.
But we find 2 problems within the proposed “home share” ordinance that’s emerging, and we strongly suggest a couple of amendments.
First, fellow Duluthians should know that, as currently written, the home share ordinance would criminalize renting out a room in your home for the weekend of an event like Grandma's Marathon. In order to comply, you would need to get a home inspection and an operational permit. Final numbers haven’t been approved by the Duluth City Council, but that cost has been proposed at $275 — plus a $200 licensing fee and applicable taxes
(11.875 percent). Then you could legally host guests for just a night or two.
People who rent out space in their homes during the overbooked weekends of celebrated local events are not criminals. They should not be expected to pay exorbitant fees and clear high hurdles just to offer such a simple service to the city and its visitors.
The federal government recognizes limited short-term rental as an accepted, noncommercial, residential use. If you rent out space in your home for 14 or fewer days annually, the IRS does not tax the proceeds. This seems a sensible distinction, and we believe the home share ordinance should only apply to those renting space in their homes more than several days per year (either 14 days as per the IRS rules or seven days, as currently codified in Duluth's rental housing regulations).
Second, we believe the licensing fee for home shares should be reduced to $50. The new policy is supposed to "level the playing field" between various short-term rentals, including vacation rentals and bed & breakfasts. But the proposed fee structure unfairly would burden home share-type licensees. The home share license would cost nearly twice as much as vacation rental licenses ($675, renewable every six years, or $112.50 per year).
We're not running a major business; we're simply earning a bit of extra income to help pay the mortgage. The approximately $1,000 we cleared by hosting 11 stays through Airbnb pales in comparison to the $600 to $2,500-plus weekly profits of current vacation rentals listed on VRBO.com. A $50 annual fee seems far more sensible for home share rentals and has been adopted successfully by cities like Nashville, Tenn., and Galveston, Texas.
We've had wonderful experiences hosting guests through Airbnb. Many of our guests told us they wouldn't have come to Duluth if our space hadn't been available (either because they couldn't afford a $200 hotel room or because hotels were full). Several travelers who stayed with us said they preferred home share rentals for the homey atmosphere and insider advice on local businesses and activities.
We love Duluth and enjoy being ambassadors of this city. We hope Duluthians like us can resume legally hosting guests with sensible requirements and reasonable fees. We urge all local residents with an interest in this matter to contact their city councilors and encourage them to apply these amendments to the proposed home share ordinance.