This commentary is by Jenny Dewar, who has lived in Pownal for 20 years and is a board member of the Vermont Short-Term Rental Alliance.
I am writing in response to recent letters by Donna Brown and Lew Holzman, who have both contributed to the vilification of short-term rentals in defense of their second homes in Vermont.
There is a lot to unpack in their letters. Both are part-timers. This is a tradition in Vermont for people from New York and elsewhere who enjoy their country weekend or vacation homes. I have no problem with them whatsoever. Their taxes and presence are vital to rural communities.
It’s lucky for Brown that she is in a financial position to own her second home without having to rent it out short-term. She wrote, “We did not cause this housing situation because we have a well-used vacation home. We do not rent it out as a short-term rental. Friends and family come and use it.” Cool.
We did not cause this housing shortage either. I own, and now live in, a large house left to me unexpectedly by my parents, who didn’t leave any money to pay the mortgage. I manage another that is still enjoyed by the family who grew up in it. I do not have Brown’s luck to afford it without inviting short-term guests.
Neither house would be viable for first-time homeowners unless they had an enormous chunk of change burning a hole in their pockets, and neither could be kept if we could not also use them as short-term rentals. If or when we sell them, they will likely go to other second-home owners or Vermonters who rent them out to afford them.
Holzman wrote, “We pay our taxes but are on a fixed income, so increases are a concern. What about short-term rentals like Airbnbs, which need to be regulated and taxed at a higher rate? Wouldn’t it be more meaningful to try to attract more businesses to Vermont and make them pay their fair share of taxes?”
Well, firstly, we pay extraordinarily high property taxes, and increases are a major concern for us as well.
Secondly, the phrase “short-term rentals like Airbnbs” uses language that I find irritating. My business is my business, and it is a short-term rental. Airbnb is simply one of the platforms we use to attract guests. I do not own an Airbnb. I simply use the platform, just as I use Vrbo and my own website.
Finally, we are already taxed at a higher rate. Our guests pay an extra 3% surcharge on top of the 9% base Vermont meals and rooms tax, for a total of 12%. We are the only lodging industry in Vermont with this additional tax. Does that drive guests to hotels? Nope. It drives them to the Berkshires, New Hampshire, Maine and upstate New York.
So how does that equate to the accusation that we do not pay our “fair share” of taxes?
Holzman also wrote, “How will the taxing authorities identify who comes to Vermont once in a while versus those of us who come regularly and spend our money at the general stores, restaurants and many recreational establishments?”
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Short-term rentals in our state are occupied full time. While a specific guest may only come once in a while, I personally host hundreds — if not thousands — of guests every year. Believe me, they are spending money at general stores, downtown restaurants and recreational establishments in Vermont because that is where I send them. Several additional small-business owners benefit: mowers, plow operators, cleaners, handy people, electricians, yoga instructors, massage therapists, home chefs and so on — all folks I recommend to my guests to enrich their stays.
I am not different or special. I am on the board of the Vermont Short-Term Rental Alliance, and we hold a yearly conference where owners come together to learn, share ideas and study how to make our spaces safe and responsible. We contribute to the economy through property taxes, meals and rooms taxes, and funneling guests to local establishments.
Our properties probably put more money into the economy than second-home owners when compared directly. That said, collectively we have far fewer properties. The data says we own around 3% to 4% of the housing stock.
We are not the enemy. We are not the problem. We are not attacking second-home owners. I wish they would return the courtesy.
