The Florida tourist season is fast approaching and it’s a safe bet that St. Pete is about to see an influx of short-term and vacation rentals. Sites like like Airbnb and VRBO/Homeaway make it easy for hosts and renters alike. They also generate tax revenue for the county. On the other hand, they can have disruptive effects on neighborhoods and traditional B&Bs, a subject of intensifying debate in this area.
The Florida legislature has limited local government restrictions on short-term rentals, defined as less than 30 consecutive days, since 2011. In St. Petersburg, houses or apartments are not allowed to be rented short-term more than three times annually in areas zoned for housing. According to Director of Codes Compliance Assistance, James Corbett, this rule is used in response to complaints and is not the city’s attempt to monitor usage for every property. Short-term rentals are often restricted by condominium, home owners’ association and rental contracts.
Despite city code and HOA restrictions, many properties in residential neighborhoods are listed frequently anyway.
Benefits of Hosting
Hosts earn money from their properties with low incremental costs. Airbnb charges a 3% fee and offers reviews to prospective guests and a streamlined enrollment process. Listing a property is convenient and flexible. Much like Uber drivers with their own cars, hosts can mark their property available with a few clicks of a button. Airbnb alone generated $24 million in revenue with 140,000 visitors to Pinellas County last year.
In Gulfport, Stephanie Bartolotta has rented out her guesthouse 190 times since 2010 with 90% of recent guests rating the experience five-star. Working full-time in the medical field, Stephanie enjoys the extra cashflow. Living next door, she is available for any issues which arise. She indicated the property is booked solid for December through May.
Hosting is also a popular choice for seniors who comprise 45% of Airbnb’s Florida hosts, earning over $150 million last year. AARP has cited additional benefits of home sharing for seniors, including increased interaction and the opportunity to learn and to age in place.
More Tax Dollars for the City
As of October 1st, sites similar to AirBnb like VRBO, TripAdvisor, and Expedia agreed to start remitting a 6% bed tax to the Pinellas County Tax Collector’s Office on behalf of their users. Prior to this agreement, only AirBnb, collected the bed tax. The other sites left it up to the host to pay the tax. Last year AirBnb remitted close to $1.9 million.
A Boon for Tourism
Short-term rental advocates trumpet the overall impact on local economies, increased tourism, and sales and lodging tax revenue. Denis Hanks of the Florida Vacation Rental Managers Association said “With 400,000 vacation rental properties in Florida travelers are very aware of the variety available on these sites.”
Traveling guests also benefit financially through competitive rental rates, often based on hosts’ low incremental costs. Many properties are available for under $50 per night. The diversity of choices is also a major attraction. Airbnb currently lists over 3,000 properties in Pinellas, including houses, apartments, and rooms within houses, in just about every neighborhood. Prospective renters can check previous reviews of the property and communicate with the hosts. VRBO lists over 300 properties locally with a concentration in resort areas.
At what cost?
One clear negative impact of the rise of short-term rentals is a sharp decline in business for bed and breakfasts. Licensed B&Bs are subject to far more regulation than Airbnb because they serve meals and require staff. Ed Caldwell, owner of the Dickens House in Old Northeast for 18 years, says he cannot compete with Airbnb’s prices and may have to go out of business. He says, “[the City] does not sufficiently enforce regulations or respond to complaints about shortterm rentals. As a result, traditional B&Bs suffer from government suppression of legal businesses.” The Dickens House, a 1912 Arts and Crafts structure, was listed for sale earlier this year.
Neighborhoods can also be impacted by short-term rentals. The influx of visitors can cause parking issues, late-night noise and potential security concerns. The long-term effect on housing values is debatable. Some argue the amount of affordable housing may be reduced as a result of short-term rental housing that could otherwise be leased on a long-term basis.
Robin Reed, an Old Northeast volunteer preservationist, indicates that complaints about short-term rentals turn up on the community’s Nextdoor social network and in conversations with neighbors. She says those with concerns can request assistance or enforcement from the city via the SeeClickFix app.
Complaints Vary by Neighborhood
Kim Manghisi has rented out a house she owns in Venetian Isles since 2015. Her neighbors have repeatedly complained to the city that short-term rentals occurred more than three times annually. Faced with violation notices and increasing fines, she now limits rentals of less than 30 days to three times a year and primarily accepts longer-term tenants. She estimates that this has reduced her rental income for the property by half.
Toni Johnston says she has booked her house in St. Petersburg continuously for 18 months with no complaints. She says, “Vacation rentals are meticulously maintained, unlike long-term rentals. Tourists are a big part of our economy and we should welcome them any way we can. The City needs to protect owners’ property rights.”
At this point, one thing is clear. With St. Petersburg’s increasing popularity, demand for vacation rentals is only going to increase. And where there is demand, there will be supply.
