Short Term Rental Moratorium in Truckee
On September 28, 2021, the Truckee Town Council approved a 45-day moratorium (suspension) on issuing any new short-term rental (STR) permits through June 2022.
“Why?” You might be asking yourself.
Under an “emergency” mandate, the Town Council led by Mayor Anna Klovstad voted unanimously to ban the issuance of short term rental permits with the hopes of encouraging more workforce housing and stopping the negative impacts (think trash, parking, noise) that a short term rental can have with neighborhoods.
Because this moratorium was going to negatively impact so many of my buyers and sellers at least in the short term, I went to the meeting to voice my concern. Several other people were there voicing theirs too such as a current homeowner that wanted to have the option to rent their home out when they go on vacation so that they could afford homeownership. Unfortunately, as it turned out, the Mayor and Town Council members had already made their decision to vote in the moratorium and no matter what the facts and true impacts were, they were going to follow suit and vote in the moratorium.
While in the meeting, the Town staff admitted that with the new restrictions and fines in place, nuisance complaints from short-term rentals were very low. However, The Town Council members stressed that they needed to study the impact of short-term rentals on workforce housing in hopes to create more housing for the locals who serve our service industry. I just couldn’t help but think, “You are expecting our second homeowners to stop using their homes and just start renting their homes out long term?”
For years, people have bought second homes in the Truckee/Tahoe area with the hopes of using them as short-term rentals when not in use. With proper management, it’s been a great way to offset the expense of owning a property in the mountains. It also has been a great opportunity for families to enjoy the mountains and get a taste of the lifestyle that it provides. However, with the influx of new residents and new Town Council members, it seems as though we are starting to go towards a “not in my backyard” mentality and instituting new policies to support this.
Listen to Our Podcast On the Moratorium
What does this mean for you?
For anyone who already owns a permit, make sure to renew it. Though it is worth mentioning, if you miss the renewal date, you will not be able to get another one during the moratorium. If keeping your short-term rental is your goal, it’s crucial that you renew your permit on time. There is also talk of permits going on a lottery system and implementing a full short-term rental ban.
What are some other ways to offset your real estate expenses?
In hopes of providing additional workforce housing and creating a more “community” feel throughout Truckee, the Town has issued some compelling incentives and solutions to rent to people for 30 days or more. Here are just some of the programs that have been recently created.
Accessory Dwelling Unit Program
The Town is offering a bundle of loans and grants to incentivize both new construction of Accessory Dwelling Units (ADU) and long-term renting of existing units. Want to make money from a renter and from the town? The grants go up to $50,000 on new construction and $15,000 for existing. Yes, you read that right. You just get $50,000 for making your new home a long-term rental. For more information on qualifications and also deed restrictions, you can go to the Town of Truckee website and click on the housing icon.
Workforce Housing Grant Program
This program is a partnership with a rental agency called Landing Locals. The town will give a cash incentive to anyone who wants to convert their in-law unit or any other ADU to a long-term rental. This is available for whole houses or just rooms. Grants can get as high as $10,000. Landing Locals works to provide homeowners with tenants that fit their needs while also putting renters in long-term affordable living situations they need.
What can you do?
Whether you agree with the moratorium or not, it is best to voice your opinion and take an active role in how we want our town to move forward and our community to look and feel. Voice your concerns with the town council members. You can easily do this by accessing their emails below.