Short-Term Rental Regulations: El Paso Seeks Data-Driven Compromise

The rise of short-term rental platforms like Airbnb and Vrbo has transformed the hospitality industry and created new revenue streams for property owners. But it has also led to tensions in residential areas as transient guests cycle through neighborhoods meant for long-term residents. Across the country, cities are grappling with how to balance these competing interests.

El Paso is the latest city to wade into this debate. Earlier this year, the City Council considered imposing new regulations on short-term rental (STR) owners to address parking shortages, noise, and trash complaints. But after receiving backlash from the community, the council pressed pause and opted for a pilot program instead.

Approved this week, the new pilot will allow El Paso to take a data-driven approach to determining if and where further regulations may be needed.

How It Will Work

The crux of the pilot program is funneling STR complaints through the city's 311 phone number. This centralized intake will document the location and nature of issues residents experience with neighboring STR properties. After a year, the data will be analyzed to identify problem areas and shape any policy changes.

"We really want to be able to identify what is the issue when it comes to short-term rentals," said Heidy Schoenz, president of the El Paso Short Term Rental Alliance. "Once we come back in a year we can really see the data and identify if there is a problem with short-term rentals."

Despite some high-profile complaints, Schoenz believes most STRs operate responsibly in El Paso. She hopes the pilot will validate that and show that further regulations are unnecessary.

Others are more skeptical and welcome regulations to rein in "bad apple" owners.

Seeking a Fair Compromise

Like many cities, El Paso struggles to strike the right balance between welcoming visitors and preserving neighborhood character. The city sees over 2 million tourists per year, many attracted by amenities like outdoor recreation, culture, and cuisine. STRs help accommodate this tourism and offer income opportunities for local owners.

However, critics argue the playing field is uneven. Hotels must comply with zoning rules, pay lodging taxes, meet safety codes and more. STRs skirt many of these regulations despite acting as de facto hotels.

El Paso resident Jennifer Esparza lives next to an Airbnb and mostly praises their operation. But she has noticed parking crunches whenever the property has guests.

"There's a lot of people out there also and there's not much space really for us to park," she said.

For visitor Alejandro Ortegon, STRs provided an affordable and convenient lodging option. But he agreed that more oversight could make sense.

"It is a little bit unfair for hotel owners, especially the hotels that aren’t big chains," he said.

Esparza's and Ortegon's perspectives reflect the nuanced debate occurring in El Paso and in communities everywhere. The pilot program will shed light on the best pathway forward for the city.

Data Over Politics

The STR pilot represents a positive step toward evidence-based policymaking. El Paso leaders are taking the time to gather objective data instead of reacting to anecdotes or political pressure. This thoughtful approach could provide a model for other cities wrestling with STR issues.

Of course, data has limitations, too. Only some irritated residents will report issues to 311, and more than one year may be needed to draw definitive conclusions.

Still, the pilot will almost certainly advance the conversation by grounding it in real metrics. And it offers a chance for compromise - addressing serious problems where evident while allowing responsible STRs to operate freely.

The STR debate asks more profound questions, too - about how we build communities, who gets to call a neighborhood "home," and how cities evolve equitably. El Paso isn't going to solve those overnight. But in the short term, its pilot program provides a sensible path forward.