How Short Term Rental Contribute To Local Economy

There are plenty of communities around the world that are less than thrilled with residents who turn properties into Airbnb rentals.  Some cities have gone so far as to pass additional regulations to slow down the tide of the shared economy, while other areas have homeowners associations that make it harder for residents to rent out their houses. What a lot of these communities don’t realise is that the shared economy is actually an economic boost. Short term rental helps local economy to some extent. Read on to learn how short term rental helps local economy and you can gain some additional tips that you can take to your next board meeting.

Convincing some people who are entrenched in their belief that the shared economy is bad will take some work.  Start by letting them know a lot of people who book on Airbnb are families who want to have a way to keep the family together and do so affordably.  It can be cost-prohibitive otherwise to try to book multiple hotel rooms.  Families mean stability.

Let those who are concerned know that you, too, are concerned and that you want everyone to understand that you will be a responsive and responsible owner.  Setting guidelines and ensuring your renters know that they are a requisite for staying there will help go a long way towards ensuring your neighbours will be happy.  Remind fellow residents that a property in use is much less likely to be vandalised as compared to a vacant property, where squatters might take up residence or the property might be damaged by vagrants.  Renting a property can actually reduce crime in residential areas.  Who knows, one of the renters might love an area so much he or she moves there permanently!

Remind them also that there is a significant economic boost to a community when the tax base is more stable. Patching the gaps in your income by renting out an otherwise unused property helps make sure that you are supporting local government revenue. Your work on your own Airbnb property management is making a great contribute to local economy. Alternatively, if you are disabled and unable to work outside the home, being able to rent a room in your house can mean the difference between relying on government subsidies and having a solid income stream of your own.

Renting on Airbnb also brings additional people to an area, boosting tourism revenue at local restaurants and shops, providing income and possibly even added employment to handle the increase in business.  Touristy areas are used to the seasonal income boost, but that often shuts out the smaller communities.  The shared economy helps bring some of that additional revenue to places that could really use it.  As a case in point, Airbnb collected data on rentals in the Bedford-Stuyvesant section of Brooklyn, New York and found that in just one year, $8.4 million dollars was spent at local shops and other businesses.  

Recommanding local cafes and restaurants to your guests through your welcome book is a good idea to show your hospitability.

Should a government municipality wish, it can gain some additional tax revenue by requiring all Airbnb renters to apply for a permit.  The city of Fort Lauderdale in Florida in the United States received over $84,000 in additional revenue from business taxes and registration fees alone.  Imagine what that can mean to a community.  That can add another police officer or allow a library to be open additional hours.

Change is always hard, but good change can really transform a neighbourhood.  If you would like more information on how you can be a good Airbnb host, check out our other posts here at kozyguru.com