Short term rentals have quickly become profitable businesses created by investors and second-home buyers who speculate on Santa Fe’s housing market. Current ordinances and enforcement fall short of addressing the problems of allowing this commercial use in our traditionally residential neighborhoods. Cities and Counties across the US have struggled to overcome the influence of investors in order to minimize the problems created by STRs in their communities. Santa Fe is way behind the curve.

• Every home or condo that is converted to a short term rental depletes the supply of homes for locals

  to rent long term or buy.

• When investors and second-home buyers are speculating on an income-producing property,

  local buyers cannot compete.

• Since non-owner occupied STRs are more profitable than month-to-month or long-term rentals,

  STRs deplete rental options for residents and seasonal workers.

• When families cannot afford to live in our traditionally residential neighborhoods, enrollment at

  established schools declines resulting in a reduction in school funding.

• There is a shortage of about 6000 housing units in the City of Santa Fe. There are over 2200 STRs currently operating, with or without permits. Short term rentals contribute to Santa Fe’s housing shortage.

• The availability of homes in all price ranges is critical to attracting experienced professionals and skilled

  workers to work in every sector including government, education, healthcare, construction and tourism.

• Short term rental speculators enjoy low overhead and a relaxed regulatory environment compared to developers

  of conventional B&Bs, hotels and resorts.

• As cities encourage guest houses (ADUs) as a way to increase housing density, strict STR ordinances are

  necessary to assure that these new rules result in more housing, not more motels.

• No other full-time business is allowed to open a business in an existing house without a zoning change

  and review by the planning department.

• Businesses that are located close to our neighborhoods serve the neighborhood. Customers

  aren’t on site when the business is closed.

• With non-owner occupied STRs, customers are on site when there is no owner or operator on site.

• Property taxes are assessed on “primary use”, not zoning. Our County Assessor is burdened

  with identifying non-owner occupied STRs in order to accurately assess property tax at “non-residential” rates as

  the “zoning” and the “primary use” are not consistent.

• Transient lodging near established schools and parks threatens the neighborhood’s sense of safety.

• Enforcement of our STR ordinances is a challenge and expense for City of Santa Fe staff. Simplify the

  ordinances and decrease the allowed density in order to make the laws easier to enforce.

• Nuisance complaints regarding noise, parking, garbage and pets sometimes result more often from non-owner occupied short term rentals.

• Neighbors want neighbors: Community is built on familiarity and relationships built over time.

  A Short Term Rental Ordinance that is designed

  to truly protect Santa Fe’s housing supply should require both

  Proof of Ownership and Proof of Primary Residence: “Owner-Occupied” STRs

What about Tourism? What about it? Tourists are not entitled to our homes. Residents are not responsible for meeting the housing needs of tourists. If we need more lodging options for tourists, then developers should acquire commercially-zoned properties and go through the design, review and approval process for a project that will meet those needs. Currently, lodging businesses, including STRs, operate at an average of 65% capacity. When the illegally operating STRs are shut down, existing lodging providers will benefit from increased occupancy rates.