Ventnor and Brigantine keeping close eye on short-term rental activity in their neighborhoods.
Both towns have minimal restrictions and limited resources to enforce local STR law.
Latest Short Term Rental (STR) Issues:
- STR’s taxed as commercial business.
- Spot-Zoning. Planning Boards need greater scrutiny.
- Potential mortgage fraud. Lack of proper commercial insurance.
- Hidden identity of property owners. LLC’s and holding companies. Who can you sue?
- Absentee landlords OK in Brigantine. Crime. Noise. Parking.
- Builder incentives not identified in contract price. Inaccurate home values.
- STR’s harm full-time residency and local business. Less housing available for local workforce.
CBS NEWS: Rapid increase in short-term rentals transform neighborhoods. Worries that there is little review of the individual businesses and the impacts to local communities and regional infrastructure. Hotels are scrutinized by planning and zoning boards, but hundreds of vacation homes are not.
Most problems stem from short-term rentals, often owned by absentee landlords.
Colorado new legislation would classify short term rental properties as ‘commercial’ and therefore institute a higher tax rate on the homeowners. https://www.newsweek.com/colorado-short-term-rental-tax-increase-housing-market-1840438
What’s new: Colorado legislation to tax short-term rentals at the same rate as hotels, saying it’s a matter of fairness. STR owners would pay 27.9% lodging rate, rather than current 6.77% residential rate.