Annapolis Respects its Citizens’ Property Rights On Short-Term Rentals — Putting it On Strong Legal Footing
Ask any American about the American Dream and you’re likely to hear about home ownership. And if that American is a Millennial, like me, you’re likely to hear that home ownership remains just that: a dream.
But even for those Americans who do own homes, what started as a dream can quickly become a drag. That’s because most homes come with 30-year mortgages attached to them. And in places with high income taxes and high property taxes such as Maryland, homeowners often struggle to stay afloat.
But short-term renting platforms like Airbnb and Vrbo give homeowners a way to make their homes work for them. Retirees can rent out a spare bedroom to tourists passing through town. And young homeowners, who might otherwise be unable to afford a home, can rent out rooms, supplementing their incomes.
The City Council in Annapolis, Maryland is currently considering a new law to regulate short-term rental platforms. Council members should vote yes on Ordinance 26–19 because it ensures the $7 million generated in economic activity and 60 jobs created in Annapolis in 2018 grow even higher in the coming years.
Ordinance 26–19 should be a no-brainer for Annapolis Council Members. The ordinance empowers Annapolis to regulate short-term rentals in a way that empowers homeowners, grows the economy, and protects neighborhood quality.
Ordinance 26–19 benefits consumers: too many areas of Maryland have few hotels, let alone ones with affordable rates. Competition from Airbnb, Vrbo, and other companies has already forced hotels to cut their prices, making family travel more affordable.
And because many rental homes are located in communities that don’t ordinarily see much tourism, short-term rentals support local businesses overlooked by Big Hotels.
But the Big Hotel lobby continues to peddle misinformation about short-term rentals and is pushing lawmakers for new restrictions that would end up lining the pockets of massive hotel chains.
The Annapolis City Council shouldn’t fall for it. Because when legislatures listen to the Big Hotel lobby and restrict rights, the courts step in. Across the country, courts are rejecting state and local laws that unreasonably limit how Americans can use their own homes.
Just last month, a Texas state appellate court declared Austin’s restrictive regulations on short-term rentals unconstitutional because they infringed on property rights and the right to freely assemble. Austin’s unconstitutional law prohibited homeowners from renting out their second homes and also limited gatherings of guests on rental properties.
Austin claimed the law was needed to address noise and trash problems. But the court saw this for what it was — an outright ban on property use and not an attempt to address the identified problem. The court therefore held that these restrictions were not narrowly tailored to achieve a compelling government interest.
If the goal is to prevent noise and trash accumulation, for example, most local governments already have ordinances to deal with that. Consider a teenager whose parents leave him home for the weekend: if he decides to throw a party for 50 of his closest friends, isn’t that the same problem?
In other words, governments should target bad behavior and not attack rule-abiding short-term rental hosts. The courts agree.
Fortunately, lawmakers in Annapolis realized the legal and political realities of limits on home-ownership rights. They listened to their citizens and not the Big Hotel lobby. In doing so, the city council drafted legally solid legislation allowing homeowners to rent out their second homes.
In Ordinance 26–19, Annapolis has evidently learned from the mistakes of other governments. Rather than target law-abiding short-term rental hosts, the ordinance would enable law enforcement to focus on bad actions of bad neighbors. This means noise disturbances, littering, and other neighborhood issues can be dealt with more effectively across the board.
Cities should follow Annapolis and enact reasonable regulations that allow homeowners to rent their homes, pay their taxes, and comply with safety regulations without needing a lawyer to make sense of what’s required of them.
Coupled with existing quality-of-life ordinances, the modest regulations in Ordinance 26–19 will let homeowners supplement their incomes, give tourists affordable lodging options, increase tax revenue for the city, support local stores and restaurants, while still protecting neighbors from bad actors. Annapolis lawmakers should pass Ordinance 26–19 and show the nation that Maryland is ready to empower its homeowners, not line the pockets of Big Hotels.
