Schwab: Short-term rentals legislation is a move in the right direction

I commend legislators that are targeting bad actors and working to stop the so-called “party houses” and want them to know they have the full support of many of us in the industry. Just don’t punish me and my clients by lumping us in with those bad actors by creating unneeded, hard to follow rules which will hurt thousands of homeowners which will find it very difficult to protect their investment and maintain their properties.”

Steve Schwab, founder & CEO of Casago

Short-term rentals have been a heated topic of discussion across Arizona towns and cities over the last few years.

As platforms like Airbnb have expanded access to renting out your own home, while at the same time, regulations of the vacation rental industry were consolidated at the state level, municipalities have struggled with developing or using the right tools to fight the bad actors that have been antagonizing certain neighborhoods and giving short-term rentals a bad name.

As a 20-year veteran of the vacation rentals industry and the owner of Casago, a Scottsdale-based company that manages 2,700 properties across Arizona, the U.S. and Mexico, I take “being a good neighbor” very seriously.

At my company, we are constantly implementing new systems, training staff, and communicating with property owners to ensure that we are complying with all regulations, paying our taxes, and being good neighbors.

I say all of this because running a short-term rental, whether you are an individual or a professional property manager, can be done right. And there are things we can all do to ensure that bad actors stop threatening the neighborhoods that we call home.

Last month, the Arizona Legislature discussed several pieces of legislation (HB2875 and SB1554) designed to institute further regulations on short term rentals and vacation rentals in the state of Arizona. I agree that there’s a place for legislation to ensure that it is managed responsibility and applaud the Arizona leaders’ desire to stop the bad actors who are giving the short-term vacation rental market a bad name.

There are effective provisions in each of the proposed bills, but improvements can be made that will avoid creating problems for the good actors in the industry.

The real problem and frustration regarding short-term rentals stems around so-called “party houses.” This is a problem that did not exist before the rise of online short term rental platforms that allow people to rent properties with no vetting. This is a problem that has to be solved.

I can speak from experience that there is actually a pretty easy solution to the party house problem, as we’ve been able to stop these in the properties we manage.

In addition to requiring existing sound monitoring technology, it’s important to have a person in town that can be called to deal with issues as they arise, unlike the current law where all that’s required is a phone number, but the person on the other end might be halfway around the world unable to do anything in that moment.

HB2875 embodies the spirit of these ideas. However, there is a provision currently in the bill allowing cities to require in-person check-ins for all short-term rentals. I understand that this provision is intended to ensure that the person who made the reservation is the correct person that checks in to the property, but there are other tools and processes that can more easily be used to confirm the identity of the renter.

At Casago, we have background screening tools to verify identities and ensure that those renting are using the properties we manage according to current laws and regulations.

I was encouraged to hear that Representative John Kavanagh is open to modifying this provision to allow for other means to ensure proper identification of renters and I look forward to participating in that discussion.

If it is decided that in-person check-ins are required by law, then these should be allowed to take place at a commercial place of business. As a company that manages hundreds of properties in the Valley, it may be impossible to do in-person check-ins at each property on a given day when renters would be checking in.

The same objectives can be achieved through this process.
SB1554 also proposes some possible enforcement measures to address concerns about short term rentals. Enforcement has usually been the tricky issue when dealing with party houses, so hopefully these measures can shift bad actors into good neighbors.

I commend legislators that are targeting bad actors and working to stop the so-called “party houses” and want them to know they have the full support of many of us in the industry. Just don’t punish me and my clients by lumping us in with those bad actors by creating unneeded, hard to follow rules which will hurt thousands of homeowners which will find it very difficult to protect their investment and maintain their properties.

Editor’s Note: Steve Schwab is the founder and CEO of Casago, a Scottsdale-headquartered vacation rentals and property management company that expertly manages 2,700 properties across the U.S. and Mexico.