(The Center Square) – Northern Arizona’s tourist haven, Sedona, has so many short-term rentals and so few affordable rental units that businesses can’t find help. So much so that the city will soon pay Airbnb hosts to take down their listings and rent them out to local workers.
Starting September 1, the city will accept applications from landlords with short-term rentals listed to rent the property to someone who works in the city.
The Rent Local pilot program is unanimous approved by the city council on Monday allocates $240,000 in ratepayer funds. A landlord may qualify for the incentive program by transferring their property from an active short-term rental to a long-term rental for a Sedona resident who works at least 30 hours per week for one month with a local employer. The program includes safeguards to ensure that the landlord does not evict the tenant or that the tenant remains employed by a local business.
The owner of an entire property with three bedrooms could qualify for $10,000 in incentives per year. The pilot project will end when the appropriate money runs out. The landlord would receive half of the incentive from the city at the start of a lease and the other half at the end of a one-year lease.
City officials say the proposed fares are similar to other cities that use similar programs. Truckee, Californiaand Big Sky, Montanaboth have similar incentive programs.
Since Arizona Governor Doug Ducey signed a law prohibiting municipalities from regulating many aspects of the proliferation of short-term rentals, Sedona has become a popular place for investors to buy homes and list them on listings. sites like Airbnb or VRBO.com.
According At AirDNA, there are 2,752 active short-term rentals listed in Sedona.
In addition to a high percentage of short-term rentals pulling the area’s housing stock, local hotelier Enchantment Resort has begun buying homes in Sedona and surrounding towns to rent out to employees. A hotel representative told Red Rock News that the prevalence of short-term rental properties has reduced housing options for potential employees.
Cottonwood resident Lisa Sanchez said her family was evicted from their rental after the hotel bought the property.
“I received a notice at my door on June 16 from the current property manager,” she told the council. “They bring people from other countries to live in our house. It’s just very difficult for everyone who is there.
Council members approved the measure amid fears of landlords evicting residents or getting the inducement and then reverting to short-term rentals.
“I want something in place to make sure we catch potential abusers,” councilor Kathy Kinsella said.
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