Short Term Rentals
Deplete Our Housing Supply
In the City of Santa Fe
Over the past 15 years, short term rentals (STRs) have become popular with both tourists and investors.
The “Airbnb Effect” has reduced the number of homes for residents of Santa Fe to rent long term or buy.
What began as renting out a spare bedroom has become an industry that relies on converting existing homes into full-time lodging businesses without a zoning change. Often referred to as “airbnb’s”, short term rentals are existing homes, condos, guest houses and apartments - or portions of these dwellings - that are rented out for less than 30 days. The “Airbnb Effect” has been documented for over ten years: When an existing home is converted from a residence into a motel, one less home in Santa Fe is available for locals to rent long term or buy. STRs compromise the sense of community and safety. Neighbors want neighbors, not a revolving parade of strangers.
The current Santa Fe City Ordinance is lenient and rarely enforced. We need our City Council to revise the ordinance to:
Require “Proof of Ownership” and “Proof of Primary Residence” for new permits.
Lower the citywide cap on STRs in “residential zones” from 1000 to 500.
Create a cap of 200 STRs in “non-residential zones”. Currently, there is no cap.
Increase the minimum distance between STRs from 50 ft. to 300 ft.
Require a letter of HOA compliance in covenant-controlled neighborhoods.
Equip the City of Santa Fe staff with protocols, training and a mandate to strictly enforce the ordinance.
Click here to read the current ordinance and view a map of the permitted STRs: City of Santa Fe Short Term Rental Website
There are currently about 1200 STRs with City permits. Another 1000+ operate illegally without a permit.
If we “grandfather in” the legal STRs and lower the caps, it will be years before any new permits will be available. Existing STRs with permits and in compliance with the law would be allowed to operate, preserving their investments and retaining STR options for tourists. This allows the City of Santa Fe staff to focus on enforcing covenant compliance and shutting down illegal STRs.
STOP short-term rental investors from competing with local homebuyers.
STOP landlords from evicting long-term tenants in favor of converting to short-term rentals.
What’s the Problem?
Our City Councilors need to recognize the negative effects of allowing investors to convert our homes into motels.
Our current STR ordinance must be updated in order to protect our housing supply and our neighborhoods.
City Staff must follow effective procedures for identifying and shutting down illegal STRs. There must be significant penalties for property owners, property managers and marketing platforms that break the law.
Long-range growth proposals include plans for encouraging guest houses (ADUs). Other cities have used this strategy to increase housing density. It is essential that strict STR regulations accompany any plans for increasing housing density so that ADUs will meet our housing needs rather than become motels.
Cities, Counties and States across the US are working to protect existing housing inventory and restore neighborhoods for residents.
There are reports almost daily of how cities around the world are restricting short term rentals in order to restore existing homes to the housing supply.
Restricting STRs to owner-occupied properties allows for an alternative to traditional hotel stays while offering a homeowner the opportunity to supplement their income.
Existing STR ordinances around the country provide excellent models for revising Santa Fe’s ordinances.
Federal judges have consistently upheld the right of cities to create and enforce zoning ordinances.
Prioritize Housing over Tourist Lodging
Do Something
Every citizen who is concerned about the availability of homes to rent or buy can take some small action:
Consider the negative impact of STRs on our housing supply and the character of our residential neighborhoods.
Talk with your neighbors.
Write a Letter to the Editor.
Contact your City Councilors.
Attend a public hearing.
Sign our petition.
What talking points speak to you? If political action is outside your comfort zone, ask a friend to help you write an email to your City Councilors. It only takes a few minutes of your time.