This morning, I was thinking about a funny advertisement from the 1990s that mentions New York City…
…and the not-so-funny STR situation confronting Pagosa Springs, Colorado.
“Hey Cookie, more Picante sauce… ”
“This ain’t Pace Picante!”
“What’s the difference?”
“Cookie, Pace Picante Sauce is made in San Antonio, with fresh vegetables and spices, by people who know what picante sauce is supposed to taste like…”
“This stuff’s made in New York City!”
Last time I checked, AirDNA shows about 1,000 Single-Family Residences (SFR) have been converted, and are available as STRs in Archuleta County, CO.
Hypothetically… what happens if 10% of the STRs (in Archuleta County) are illegal? 100 active listings offering illegal STR occupancy? Do these 100 STR units choose to come into compliance with BOCC rules, or do these 100 STR units simply choose to shut down and list on the MLS?
Hypothetically… if 25 STR units (2.5% of 1,000) became available For Sale, how would an inventory of 25 new listings impact local home prices?
I wonder why some realtors are opposed to BOCC rules on STRs …
NYC law — effective January 9, 2023 — requires:
- STRs must have a registration number, and the registration number must be used in any STR advertisements.
- NYC will issue STR registration numbers only for STR hosts who live permanently in their STR property. STR operators must own the property, or tenants must prove they are allowed by the owners to STR the property.
- NYC will not issue STR registration numbers for rent-controlled, city-subsidized or public housing.
- STR hosts must inform NYC if their property is listed (30 days lease or less) with an STR marketplace (ex. Airbnb or VRBO).
- STR marketplaces must register with NYC; STR marketplace registration includes STR registration numbers in listings; STR marketplace must verify STR registration numbers prior to processing STR transactions.
- Violations of the new STR law can result in fines of up to $5,000, or 3x the revenue generated by the STR for each violation.
- STR marketplaces can be fined $1,500 per violation for processing payments for unregistered hosts.
New York City has approximately 40,000 STR listed on Airbnb. More than 50% of these STR are for SFR (whole-home) rentals, according to tracking firm Inside Airbnb.
STR hosts in NYC must collect state lodging taxes, state sales tax, NYC sales tax, and a NYC hotel unit fee of $1.50 per day.
Christian Klossner, Executive Director, NYC Office of Special Enforcement, said, “approximately 10,000 active listings offering illegal
occupancy will either be shut down or come into compliance… Registration allows hosts to know for sure what is and isn’t legal, and bring the
scale of enforcement down to a level where the focus can be on those remaining individuals determined to try to find a way around the law.”
Hank Lydick
Austin, TX (now)
Pagosa Springs, CO (soon)