Our recent article about the Village of Monticello banning short-term rentals drew a lot of attention on social media. 

One thing of note: people had a lot to say on the matter online, but no one spoke during a public hearing that was held in conjunction with the village board discussing and voting on the ban. 

Is this a case of unawareness, or apathy? 

Nevertheless, many weighed in on Monticello’s decision, some in favor and many against. 

The board decried that short-term rentals contribute to congestion during the summer months and that it is difficult to regulate and enforce actions on such properties. 

They also discussed a lack of affordable housing in the village and hoped that barring short-term rentals would add more full-time options to the housing stock. 

It’s a complicated situation, with many issues arising. Are short-term rentals, such as Airbnb, taking away from what could be a rental property for a full-time resident? 

It would be difficult to determine if that was the case or not, however, anecdotally we have heard that many people who live in Sullivan County find it difficult to find rental housing. And a search on Airbnb for the area brings back “over 1,000” results. Suffice it to say: there are a lot of homes that are only available to brief stays. 

On the other side of the token, where will visitors stay when they come to the county? Airbnb has soared in popularity, offering people a place to stay on their own terms. And while we have an impressive roster of hotels and other lodging options, they may not be available at certain times, or are outside the price range of what people can afford.  

Airbnb property owners are supposed to contribute to the room tax, but there isn’t an effective mechanism to ensure that properties are registering as a short-term rental and filing the correct taxes. 

In 2021, the county made a push for short-term rental owners to register with the county and contribute their 5% to the room tax, which is split between the county (which retains 15%) and not-for-profits engaged in tourism marketing and promotion (85%).

As Monticello noted, only three properties within the village have registered for the purpose of paying room and sales taxes. Yet a search on the Airbnb website shows around 15 available options, from rooms to cabins.

The other aspect of the short-term rental conundrum is that it makes financial sense for homeowners, who would make more money renting out their home every week, rather than only receiving a monthly payment.

With all that being said, is Monticello’s decision short sighted, or is it an urgent solution to the problem?