Short-Term Rentals Making a Big Impact in Sioux Falls

The Rise of Short-Term Rentals

The short-term rental market has exploded in recent years with the rise of services like Airbnb and VRBO. These rentals provide travelers an alternative to hotels while creating a new income stream for property owners. In Sioux Falls, short-term rentals are making a surprisingly sizeable economic impact.

The Local Economic Benefits

The Sioux Falls Short-Term Rental Alliance, a group formed by short-term rental hosts to share how STR properties benefit the local community. The alliance includes some of the city's largest rental owners who manage properties on Airbnb, VRBO, and other platforms.

According to the alliance, short-term rentals bring over $13 million annually to Sioux Falls. That money gets infused into the local economy when rental guests dine at restaurants, shop at stores, and visit attractions. Rental owners recommend their favorite local businesses to guests, further driving tourists to local spots.

Revitalizing Neighborhoods

Beyond the dollars brought in, short-term rentals are also helping to revitalize Sioux Falls neighborhoods. One host explained, rental income allows owners to reinvest in their properties, fixing up homes that had become rundown over the years. The short-term rental business has facilitated upgrades to houses that may have otherwise sat vacant.

Albert Huizing, the founder Sodak Stays, gave the example of transforming properties in central Sioux Falls into short-term rentals through his company. This has led to improved housing in areas that needed rehabilitation and modernization. Short-term rentals create an incentive to renovate homes and make neighborhoods more vibrant.

Proposed Regulations and Their Impact

With all the benefits short-term rentals provide, why is the Sioux Falls City Council proposing new restrictions that could curb their growth? A few negative incidents have shaped perceptions that regulations need tightening. However, major problems appear rare - Huizing reported only two challenges among over 2,000 rental stays.

The council aims to address concerns by requiring one parking space per bedroom and mandating owners notify all neighbors within 500 feet. But rental owners argue these regulations go too far. For instance, most properties don't have enough space to add extensive parking. Notifying hundreds of neighbors also creates an undue burden.

Striking the Right Balance

As we've seen in cities across America, striking the right balance between regulating short-term rentals and allowing them to thrive is tricky. However, the data shows these rentals create tangible benefits for Sioux Falls. They provide income for local owners, bring tourist dollars into the economy, and improve the housing stock.

Before imposing strict limitations, South Dakota lawmakers should consider the whole picture. Short-term rentals have become integral to the "sharing economy" and our economic future. With thoughtful regulations, Sioux Falls can support this emerging industry while addressing challenges that arise. There's an opportunity to have short-term rentals and happy neighborhoods.