The Long-Term Benefits and Challenges of Short-Term Rentals Discussed at #MACoCon

County leaders at the 2023 MACo Summer Conference explored the good, the bad, and the ugly of short-term rentals for counties.

Miniature house next to a set of keysCounties leverage hotel or lodging taxes on traditional hotel stays as a driver of local revenue and economic development. Maryland’s tourism is evolving, however, with a greater share of visitors opting for short-term rentals. The #MACoCon panel “Double-Edged Sword: Do Short-Term Stays Have Long-Term Benefits” explored the multitude of county government considerations around this growing industry and how short-term rentals impact tourism, workforce attraction and retention, affordable housing, and local revenues. National and local experts addressed connections, concerns, and questions for counties as they tackle the short-term rental policy debacle. 

Speakers:

  • Martha Darling Sparks, Director of Finance, Talbot County
  • Melanie Pursel, Director, Office of Tourism and Economic Development, Worcester County
  • Vincent Frillici, Public Policy Manager for Mid Atlantic, Airbnb
  • Sally Nash, Deputy Director, Baltimore County Department of Permits, Approvals, and Inspections

Moderator: The Honorable Ed Rothstein, Commissioner, Carroll County

Worcester County Director of Tourism and Economic Development Melanie Pursel addressed the economic benefits of short-term rentals, with an emphasis on tax revenue and collection agreements with host companies, reinvesting in local tourism, and attracting more diverse visitors. She also discussed the importance of zoning and permitting and how her county adjusted to the growing market.

Airbnb’s Public Policy Manager for Mid Atlantic, Vincent Fillici, laid out the current state of his company’s short-term rentals in Maryland. Some interesting data from his presentation:

  • 44 percent of Maryland hosts use money from hosting to cover daily costs like food and housing.
  • In 2022, 800k people visited Maryland and stayed in an Airbnb, typically for 4-5 nights.
  • Hotels still have about 90 percent of the market in.
  • Typical earnings in Maryland for Airbnb hosts is about 13k/year.
  • The largest source of Airbnb stays in Maryland is Pennsylvania. Canada and the UK are the largest sources of international guests.

Frillici also highlighted some new, innovative programs from Airbnb that may be of interest to Maryland counties, including spotlighting rural and less-visited destinations and live-work-rent options for teleworkers traveling and living in new destinations for extended periods of time.

Talbot County Finance Director Martha Sparks discussed the details of Maryland’s accommodations tax, and how counties can leverage it with short-term rentals. She described how each county has uniquely identified institutes that count, like zoos and visitor centers. She also highlighted challenges related to the accommodations tax, like administrative burden. She also said that the reporting system needs to evolve, and there are relationship management considerations related to revenue disbursement.

Sally Nash, Deputy Director of the Baltimore County Department of Permits, Approvals, and Inspections is closed us out with a look at how short-rent rentals interact with planning and permits and the effects of short-term rentals on housing and community. She laid out both the benefits and challenges of such rentals. She specifically focused on housing and community development, which are are big priorities and hot topics for counties and the state.