Case Study: Short-Term Rental Restrictions in Santa Fe, New Mexico
A look at the ongoing debate in Santa Fe regarding short-term rentals within residential zones.
Rental Market: A Santa Fe ordinance prohibiting short-term vacation rentals has been on the books, but was never enforced. As a result, the city has hundreds of "illegal" rentals in operation.
Timeline:
May 2005: The Santa Fe City Council discussed reversing a city ordinance on the books prohibiting short-term vacation rentals in residential areas.
June 2005: The City Council voted to research enforcement options and created a 5-person task force to look into short-term rentals in the city.
March 2006: A city council meeting addressing short-term rentals drew testimony from over 50 Santa Feans.
June 2006: A city task-force recommended legalizing short-term rentals and instituting a permit system that would require owners to pay lodgers taxes and pass building inspections each year.
September 2006: Residents against legalizing short-term rentals cited the New Mexico Supreme Court decision involving Clovis pigs as legal precedent for enforcing the ban.
October 2006: A survey conducted by The Management Company reported that visitors to Santa Fe prefer staying in private homes over hotels.
February 2007: The city council proposed a law that would allow short-term rentals for a fee of $1000 a year. In the proposal, the minimum rental period would be 7 days and owners would be restricted to only renting their property out once per month for a maximum of 12 rentals each year.
August 2007: The city council voted to pursue a course-of-action that would legalize short-term rentals in residential zones. Vacation rental owners would be required to apply for a permit costing $1000 and would only be able to rent their property 17 times each year.
Proponents of Enforcing the Short-Term Rental Ban: Historic Neighborhood Association, Near North Group Neighborhood Association, Neighborhood Network, permanent residents, Santa Fe hotel owners
Arguments:
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Noise, trash, and traffic
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Breakdown of community feeling in town
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Turns residential areas into commercial
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The city shouldn't change the law to accomadate those that are breaking it
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The Planning and Land Use office receives a fair number of complaints about short-term rental guests
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Most owners don't pay lodging taxes
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Could cause permanent residents to move to a different town
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Vacation rentals have an unfair advantage of hotels
Opponents of Enforcing the Short-Term Rental Ban: Rental owners, property managers, Santa Fe Association of Realtors
Arguments:
- Tourism is what drives Santa Fe's economy
- Ban is too difficult to enforce
- Most vacation rental guests are well-to-do and spend a lot of money in the town
- The city should enforce current ordinance regarding noise, trash, and parking instead of banning short-term rentals
- It's a matter of private property rights
- Many rental owners could not afford to live in Santa Fe without the income from their short-term rental
- Renters have indicated that they wouldn't come to Santa Fe if vacation rentals weren't available
In the News:
8/13/07: Short-term rental rules would legalize residential vacation homes in Santa Fe FreeNewMexican.com
4/20/07: Committees punt on short-term rental proposals SantaFeNewMexican.com
3/15/07: Short-term rentals: Two regulatory proposals introduced FreeNewMexican.com
2/14/07: Proposed rules allow limited short-term rentals FreeNewMexican.com
Sources
Banish, Laura. "Council Debates Rental Policy." Albuquerque Journal 09 June 2005.
Banish, Laura. "Short-Term Rental Law Debated." Albuquerque Journal 14 Apr. 2006, sec. P1.
Banish, Laura. "Short-Term Rentals Illegal, Spur Gripes." Albuquerque Journal 23 May 2005, sec. P1.
Quick, Bob. "Santa Fe, N.M., Officials Say Vacation Rentals Violate Zoning Code." The Santa Fe New Mexican 09 Apr. 2001.
Sharpe, Tom. "COUNCILORS SHRUG AT SHORT-TERM RENTING." The Santa Fe New Mexican 01 June 2005, sec. A1.
Sharpe, Tom. "DOZENS OPPOSE BAN ON SHORT-TERM RENTALS." The Santa Fe New Mexican 14 Apr. 2006, sec. C1.
Sharpe, Tom. "Quaint and Cozy Short-Term Rentals Could Be At Risk: Officials Face Pressure From Neighborhoods to Enforce City Code." Santa Fe New Mexican 13 Apr. 2006.
Simon, Russell Max. "Rental Issue Brings Case to Light ; Opponents of Short-Term Housing Use Example." Albuquerque Journal 17 Sept. 2006, sec. 1.
Simon, Russell Max. "Short-Term Rentals Get Support; Surveys Bolster Advocates' Views." Albuquerque Journal 03 Oct. 2006, sec. P1.
Wong, Raam. "Short-Term Rentals Await Council OK." Albuquerque Journal 09 June 2006, sec. 1.
Do you own property in Santa Fe? Tell us your story. We're trying to be as thorough as possible in our research, but since we don't own property in this area ourselves, we need your help!
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