The Pleasant Valley West
Why Vacation Homes and Vacation Rentals Really Matter

Why vacation homes and vacation rentals, often referred to as STR’s, are so invaluable to everyone.

Anyone who cares about the value of their home, how much they pay in taxes, and the quality of life and economic vitality of the Poconos should not only welcome, but embrace, vacation home buyers and investors.

Here’s why. 

The entire Pocono region has long been a vacation destination for families, vacation home buyers and renters, and still is. In fact most homes, about 85%, in our area of the Poconos are still bought, sold and built as vacation homes.  Let that sink in when we're talking about our tourism economy.

And yes, the Poconos is becoming a safe and affordable landing place for retirees and baby boomers, but it is most certainly and primarily and vacation destination.  In fact most full-timers have been here less than 15 years, while vacationers have been coming to the Poconos for over 100 years.  In fact, most everyone who lives here full time rented and/or vacationed here in years past.   The fact that second homes and vacation homes have evolved to become full-time residences for some of us doesn't negate the fact that we are, economically and for all practical purposes, a vacation destination - and anything that undermines tourism in this area will have a serious and terrible impact to our economy. 

We, as full-timers, have to be reminded that the Poconos was built on the backs of vacationers, including vacation renters, and the economy completely relies on them.  It’s vacationers and vacation home buyers that permit all of us to enjoy a good and ever-improving quality of life. 

Businesses have thrived here longer than any time in our history, employment is at record highs, schools and hospitals and infrastructure have all improved as result of the investments made here, and the demand for housing props up real estate values and continued interest in the Poconos. It's tourism, our primary industry, that makes it all possible. And it’s what has kept the area vibrant and has kept taxes low. 

Anti-short-term-rental advocates who wish to do away with vacation rentals, don't talk about, and usually don't understand, the risks or the costs of losing the fuel to our economic engine.   If vacation homes/rentals are restricted, they will ultimately be replaced with full time families and full time renters.  Those families require more and larger schools, which lead to higher and higher taxes. Guess who is paying for that.  It's not going to be the vacation home owners, vacation renters, and investors that were chased away.  It will be the growing number of full-timers, baby boomers and retirees... the same folks, some of whom complain about the occasional inconvenience of nearby rental property, that will be footing the tax bill.  Hold onto your wallet.

Just look at what’s happening in the eastern Poconos, as bans of short-term rentals have taken hold, and former vacation communities have been taken over by full time suburban sprawl and bedroom communities.  It’s become an extension of the New Jersey economy and the ridiculously high taxes that creates, rather than the affordable safe haven that the Poconos has always been known for. 

The problem with short-term rentals, (when it is a problem), isn't renters themselves, it is irresponsible management of short-term rentals by their owners.  There's also an increasing number of full-time owners who have no direct negative experience with vacationers or vacation home renters, but have been convinced by the vocal few that restricting them is somehow good for everyone, when they really just don't understand the immutable value.  Too many people buy into the fear fomented on Facebook pages that cascades in the commentary that follows.  They overlook the fact that vacationers were here first and our economy relies on them.  It’s analogous to people who move to the Poconos then complain about the bears.

We must think about the cost beyond the perceived and short-sighted benefit that bans and restrictions on short-term rentals provide.  And lakes and other amenities are only get more crowded and more stressed as communities transition to more full-timers.   The occasional noisy neighbor or irresponsible home owner will pale in comparison to what's ahead for communities who think they're serving the interest of property owners, or in the case of HOA’s – their members, by banning STR’s or otherwise making those communities unappealing to second home buyers and investors.  Nobody wants out-of-control party houses, but there are a very small percentage of the STR demographic, here and everywhere, and there are ways to stop those that do not involve regressive bans and neighbors trying exert control over other people’s long-standing property rights, or imposing overly restrictive rules that impact everyone, not just the few problem owners. 

Tourists, vacationers, their families and those wanting to invest in second homes will simply go elsewhere if there’s nowhere to stay or if it's cumbersome and uninviting.  It’s that simple, and it has been proven out time and time again. 

And if you chase away all the renters, the fact remains there are not enough day-trippers to support what vacationers bring to this area in terms of economic activity and stimulus.  And communities that have banned, or led members and owners to believe STR’s are banned, have significantly reduced interest from buyers in those areas, which drives property values down. Now if you’re never selling your home, you may not care. But the vitality of a region doesn’t benefit from any one individual’s short-sighted, self-interest, and neither do their family, friends or neighbors.  It's not speculation.  Just look at the communities in our area that have banned or otherwise restricted vacation rentals.  Holiday Pocono, Penn Forest Streams, and Hickory Run Forest have all banned or otherwise restricted short-term rentals - some over a decade ago.  As a result they have the lowest home values around, the least demand for real estate, and more properties for sale at lower prices than this, or any community in the area. The data is all there.

What must be considered is that full-timers don’t go shopping downtown every day, or go to restaurants every day, or whitewater rafting or skiing every day, or to area wineries, waterfalls, or pizza joints every day... but you know who does? Tourists - area visitors and vacationers... and they need places to stay. This isn't new and it isn't difficult to understand.  In fact, it's extremely short-sighted to think banning or otherwise restricting something that is the lifeblood of an economy is somehow going to make the area better. If it did, nobody opposed to STR’s has explained how.  Nobody has framed a cogent argument explaining the benefits for homeowners who have invested here, the community itself, the Poconos in general and the overall economy.  The fact is, there is no good argument; And if it hurts tourism, it hurts property owners, it hurts taxpayers, it hurts jobs, it increases crime, reduces investment and it hurts the economy overall. It hurts in every measurable way.

What makes vacation rental home owners different than an average homeowner is that they have to continually invest in their properties - making them better and keeping them looking sharp, something not done by people living in homes as full-time renters.  Vacation home owners, must maintain them well for guests because they have an image and value to uphold and reviews to worry about.  Vacation home owners continuously hire locals – most of whom are full-timers - for the services they provide. Think painters, carpenters, landscapers, cleaning services, plumbers, snow plow contractors, etc.  Most vacation home owners don’t live close enough to do regular maintenance themselves, or don’t have time, but they still have to impress guests, so they are always hiring others for maintenance and to make improvements. They’re always reinvesting in their homes, which helps drive up all of our property values and the quality life here. 

The reality is that many people make the decision to purchase a vacation home in the Poconos because they CAN rent it out to help cover costs - whether they do or not is another factor, but many want the option, as you should, if financial circumstances change. For many, it can mean the difference between keeping it and having to sell it. Not everyone buys a vacation home to rent it, or rents it because they're being greedy or thoughtless. They do it because it makes a second home possible and makes good economic sense for them and their family. And most do it responsibly. And just because a house is deed to an LLC, it’s doesn’t mean it’s some big conglomerate moving in ruin a community with unruly guests. LLC’s (Limited Liability Company) are formed by regular people to hold title to real estate for added legal protections, for liability protection, for insurance purposes and for tax reasons. It’s smart, and if your home isn’t protected the same way, you should consider it.

Most vacation home owners or STR owners never receive a single complaint from a neighbor, HOA, community or municipality. Knowing what to do and how to do it makes all the difference. There are common sense regulations that won’t hurt, but more importantly there are common sense best-practices that owners can follow to keep guests and neighbors and neighborhoods happy in equal measure. It does not have to be and should not be "Them vs. Us." In fact, smart STR owners make their homes available to their neighbors when they have extended family visits. It’s neighborly, it’s kind, and it’s smart. And isn’t a rare bad weekend guest who has spent a lot of money on a vacation a better risk than that of a bad, messy, discourteous full-time renter with no financial stake in the community, who you’ll be stuck with for the term of the lease?

The Wall Street Journal recently had an article about how the short-term rental market is holding up the real estate market, helping to stave off a crash. You see, if the real estate market were to crash, housing prices would tank, and it would be 2007 all over again, but much worse because of inflationary pressures. Everything is getting more expensive and there is no end in sight. Of course, this doesn’t matter if you don’t care about the value of your home or if you're wealthy, but that's not most people.

Ironically, those who say "don't take away my right to own a firearm because someone else used it illegally" are often the same people who are all too willing to disarm other homeowners of their right to free and legal use of their property. That should not be tolerated.

Second home buyers, vacation home owners and other real estate investors will tell you that they would not invest in any area that does not permit short term rentals or that unreasonably restricts them, because those are the places where economic downturns breed and fester.  Limiting and/or banning short-term rentals will have all kinds of legal implications too for any community looking to ban them, so the focus should be on fair and practical solutions, not selfish, one-sided regulations that hurt your neighbors, other community members and everyone's investments. 

Also ironic, is that we never discuss banning any other service because of a few bad players. There are bad landscapers, plumbers, hairdressers, auto mechanics etc., so the idea of community banning anyone's right to make a living within the quiet confines of their home and the community they have invested in is simply unconscionable. And the willingness to exert control over someone else's property rights and ability to make a living and secure a good future is not only un-American, it's just plain selfish. And while some may be wealthy enough that it doesn't matter to them, being thoughtful means understanding that everyone is not in the same financial boat and may make decisions that you may not understand. But if you try to understand the economic impact to your community and to the Poconos in general , you may reconsider, especially in light of the fact that the people with the most to lose (all those investors), will come out with lawsuit after lawsuit after lawsuit and will enjoin everyone ready and willing to violate their property rights and negatively impact their investment.

Density comes at a cost, which makes being reasonable, fair, understanding and respectful of other people in your neighborhood even more important as communities throughout the Poconos continue to grow and change.  We can all respect the fact that some are opposed to vacation rentals because they've had a bad neighbor or a bad experience, but that's the exception not the rule. And beyond the economic factors, banning and restrictions invites division, resentment and continued intolerance of others – none of which leads to that “sense of community” that so many think is on the other side of the proverbial fence.

Aggressive legal action is too often the only way to end attacks like these on property rights, since township ordinances and regulations don’t pacify everyone.

If you have any questions, please e-mail us.

And if you're wonder why vacation homes and vacation rentals are so important to everyone who invests in the Poconos, read this.

 Pleasant Valley West Property Owner Group.