House Bill 583 - May Bring Clarity to the Short-Term Rental Debate

A quick internet search on two popular vacation rental sites reveals that Cambridge is home to approximately two residences that host short-term rental guests. If the search expands to include Midvale, that number increases by one. A search on Council and New Meadows raises that number by 13 for a total of approximately 16 short-term rentals that serve the immediate area.

On February 9, the Mayor of McCall, Colby Nielsen, posted comments that had originally been published in the McCall Star-News. Those comments warned the residents of McCall that impending short-term rental legislation could impact the mountain resort town and position it at a “critical crossroads.” Nielsen’s comments expressed concern about state efforts to “pre-empt local authority.”

The mayor’s concerns were summarized in this statement, “STRs are part of McCall’s lodging mix and economy, and they’ve been part of our community for decades. However, with frequent guest turnover, short stays, and income-oriented operation, many STRs function like mini-hotels within residential neighborhoods, affecting community cohesion, neighborhood livability, and local services if they aren’t managed responsibly.”

Short-term rentals, also known as Airbnbs (named after the popular vacation rental website) or STRs, are significant drivers of the economy in many Idaho mountain towns and rural areas. Yet, as clearly outlined in the above statement made by McCall’s mayor, they are also a point of contention and their potential impacts are an area of concern.

Although Cambridge is a popular way station for tourists venturing into Hells Canyon or on their way to Northern Idaho, historically, it has not been embroiled in the sort of vacation rental controversies that have impacted Idaho cities like McCall, Sandpoint, or Lava Hot Springs. Now, a new bill going through the Idaho legislature will attempt to meet future controversies head-on.

House Bill 583, which passed in the Idaho House of Representatives on February 12 with a 54–16 vote, seeks to codify and clarify property owner rights when it comes to short-term rentals.

“I think, first off, we really applaud the Idaho legislature and especially the House of Representatives for standing up for property rights in Idaho,” said Spencer Bailey, president of Idaho Vacation Rental Association (IVRA), an organization that was instrumental in helping to see this bill pass. Bailey, who raises alpacas in Bear Lake County, views the right to rent your home, whether short-term or long-term, as a basic right as a property owner.

“This bill is really about balance,” said Bailey. “It still protects neighbors while respecting lawful property rights.”

If the bill passes in the Senate and becomes law, it will go a long way in helping to mitigate potential disputes between property owners and local governments.

“We respect the role of local officials,” said Bailey. “The bill simply ensures Idaho homeowners are not regulated differently based solely on their short term-rental property usage as opposed to any other usage.”

According to the IVRA, House Bill 583, which was sponsored by Idaho legislator Jordan Redman (District 3B), “affirms private property rights while preserving reasonable local enforcement authority to address legitimate neighborhood concerns.”

Some of those neighborhood concerns in cities like Lava Hot Springs and McCall have been noise and other safety issues. But, according to Bailey, numerous studies have shown that only a small portion of emergency calls are attributed to short-term rental usage and research does not support the narrative that short-term rentals are responsible for more noise and safety issues than long-term rentals.

“I think there is a lot of emotional debate in this arena, and the data does not support that,” said Bailey.

Cities like Lava Hot Springs have been threatened with lawsuits based on their restrictive short-term rental ordinances. These ordinances have involved placing caps on the number of short-term rentals allowed within city limits, occupancy limits, and inspections. Costly fire suppression systems have also been proposed.

“If you are going to impose safety mechanisms for residential use, it should be applied equally across all residential uses,” said Bailey.

House Bill 583 preserves the right of local authorities to enforce noise, parking, public safety, and nuisance laws that apply to all residences. The aim of the bill is to prevent homeowners, who choose to operate short-term rentals, from being targeted by restrictions that single them out as proprietors of short-term rentals.

“We support the most local form of government,” said Bailey. “We think the most local form of government is the homeowner itself.”

The language of House Bill 583 prevents homeowners from being treated differently based on their property usage. Bailey sees a homeowner’s right to operate a short-term rental as a fundamental private property right that also fulfills a vital need.

“They are using those funds to pay down their mortgages, pay for their children’s college,” he said. “It’s changing people’s lives and giving them the ability to stay and live and thrive here in Idaho.”

In fact, Bailey asserts that short-term rentals are a significant driver of Idaho’s economy and brings much-needed dollars to local coffers.

”Short-term rentals are part of our third largest economy here in Idaho – that being tourism,” he said.

The IVRA represents property owners from Sandpoint to Bear Lake.

“We are statewide,” said Bailey. “We represent the entire ecosystem”

Working together with homeowners, and state and local governments, the IVRA promotes short-term rental best practices such as safety and hygiene.

“We get involved on a very local level,” said Bailey. “We want to work together with cities and governments.”

The next stop for House Bill 583 is the Idaho Senate. A senate hearing to discuss the bill is scheduled for Thursday, February 26. A competing bill, SB 1263, is also being considered. SB 1263 distinguishes between mom and pop short-term rentals that earn $10,000 or less annually and establishments that bring in more revenue, with the latter being required to comply with more restrictions and regulations.

If HB 583 becomes law, it will go into effect this summer, the prime vacation rental season. Bailey sees its passage as paving the way to more economic opportunities for homeowners as well as governments across the state.

House Bill 583 may bring clarity to the short-term rental debate. But if the bill becomes law, will it bring consensus?

“We believe it is in the mutual interest of everyone to work together to ensure a prosperous Idaho,” said Bailey.