Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
Here is a link to an interview we (Equity Team- Will Hamburg and myself) did with Sedona, Arizona Mayor Scott Jablow. We discussed short term rentals- past, present and possible future in Sedona.
In total, combing 2 private meetings/interviews, we spent approx 5 hours with Mayor Scott Jablow, Assistant Mayor Holli Ploog, Housing Manager Shannon Boone, and their in-house council.
My take-away:
The Sedona government is receiving a lot of pressure from people that are anti-STR. It's an expensive town to live in, with a shortage of LTR's, so they are eager to decrease STR's and increase LTR's.
Mayor Jablow recognizes the importance of STR's for a higher quality vacation for tourists, but he and the local administration want to limit this, once there is a AZ law that allows them to do so.
One of the best "nuggets"/"gems" was to hear him say to us that upon a AZ law getting passed that does indeed restrict the number/percentage of STR's, those that already have a permitted STR in Sedona will be grandfathered in. According to Mayor Jablow, there will not be a quick drop in STR's. Rather, it could take years to slowly reduce the percentage. I like this approach. Not only does it give peace of mind for myself and my clients, but it feels cooperative and reasonable.
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y
The first words out of the mayor's mouth, "To me, short term rentals are like a cancer on the city...Yes we do receive a lodging tax from that, but quite honestly, the amount of damage that short term rentals do to our city isn't outweighed by the amount of tax we receive." When asked what advice he has for prospective buyers of STRs, "Not to buy, not to invest in Sedona, if that's their interest." "Sooner or later, the bottom is going to fall out of the investment."
I would never trust someone with that attitude to grandfather in STRs. And the city council is who decides these matters anyway, you can't trust what the mayor says.
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Hey @Chad McMahan. I don't know if I see that as a positive. I see this as the first step to restricting STRs down to near zero. So unless you are already operating a STR in the city, you could be out of luck.
Did he say how they were going to go about the reduction? Will they be eliminating permits based on age? First in, last out type of thing? Reduce the number of available permits and force owners to reapply via a lottery?
We were down there in Oct with @Martin D. and we really liked the area overall. I guess we were lucky we didn't buy as my brother in law needed assistance with the house my mother in law lived in.
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y
The first words out of the mayor's mouth, "To me, short term rentals are like a cancer on the city...Yes we do receive a lodging tax from that, but quite honestly, the amount of damage that short term rentals do to our city isn't outweighed by the amount of tax we receive." When asked what advice he has for prospective buyers of STRs, "Not to buy, not to invest in Sedona, if that's their interest." "Sooner or later, the bottom is going to fall out of the investment."
I would never trust someone with that attitude to grandfather in STRs. And the city council is who decides these matters anyway, you can't trust what the mayor says.
Thank you for sharing this! I work in Sedona area as well as the Prescott area and this is helpful for my clients to know!
Perfect, Ryan. Short version, regardless of the mayor's negativity towards STR's, they are allowed and our clients are crushing it- as we have nailed the formula. Let me know if I can ever help you or your clients that want to get involved.
Hey @Chad McMahan. I don't know if I see that as a positive. I see this as the first step to restricting STRs down to near zero. So unless you are already operating a STR in the city, you could be out of luck.
Did he say how they were going to go about the reduction? Will they be eliminating permits based on age? First in, last out type of thing? Reduce the number of available permits and force owners to reapply via a lottery?
We were down there in Oct with @Martin D. and we really liked the area overall. I guess we were lucky we didn't buy as my brother in law needed assistance with the house my mother in law lived in.
This is a bummer IMHO.
Hi Michael. I know the mayor's perspective toward STR's is quite negative, and feels a bit discouraging. Bear in mind, STR's are allowed in Sedona, and our clients are doing great and will continue to do so. You are in great hands with Martin. If you had purchased, you would have made quite a bit of money by now. There is always tomorrow- and we are ready to help when you're ready.
There will continue to be more restrictions and requirements across most of the country- STR permits are really no biggie. Most clients are pleased they are in place, as now the STR can get "permitted" and owners have legal accepted authority to run their STR.