WHAT IS GOING WITH SHORT-TERM RENTALS?

In 1994, elected officials created the lodging overlay, designed to keep short-term rentals (STRs) and the tourists who use them close to amenities like Snow King Resort and downtown Jackson. The overlay also preserves community character by keeping neighbors in neighborhoods. Although there are high-level regulations regarding STRs, loopholes in these ordinances have allowed STRs to become rampant throughout Jackson, impacting the housing market and creating an even more intense crunch on our deepening housing crisis. In 2023, the Town Council is considering new legislation to manage STRs more effectively in Jackson.

WHY SHOULD WE CARE?

STRs are wreaking havoc in many mountain towns. Neighborhoods throughout Jackson are losing homes as investors capitalize on these lax STR regulations, forcing out local renters while investors renovate, demolish, and ultimately commodify our neighborhoods. There are many ways to address our housing emergency; while building homes is essential, we also need to limit units morphing into STRs.

OUR POSITION

We have heard from our members that being able to rent their primary residence short-term sporadically allows them to afford rising living costs and property taxes. Teachers, for example, may choose to rent their homes out during the summer to bring in extra revenue. We support a limited number of short-term rentals outside the lodging overlay for locals using their primary/only residence to supplement income. 

At the same time, we are committed to making sure that we prioritize securing homes for locals and not for tourists. Even if strengthening STR regulations won’t immediately open up new homes for us, we need to stop the leakage of homes from our local rental market to the speculative STR market.

HISTORY

In 1994, the lodging overlay was created to keep tourists close to amenities and safeguard neighborhood character. In 2007, Town Councilors crafted a regulation that allowed 30-day rentals outside of the lodging overlay.

The spirit of his new law was to allow 30-day rentals with locals in mind. A loophole led to landlords writing 30-day leases while visitors would occupy the home for a fraction of the 30 days. Interpreting the language this way allowed landlords to short-term rent their properties twelve times a year, even outside of the lodging overlay. Since then, neighbors report experiencing STRs infiltrating their neighborhoods and many renters are forced out of long-term housing situation as landlords opt to short-term rent homes to maximize their profits.

We have urged the Town Council to revisit and strengthen the language of the 2007 ordinance. This May, the item finally landed on the Town agenda. Proposed updates include limiting STR rentals outside of the lodging overlay to three times a year or 60 days (whichever is a shorter amount of time).  In addition, if the ordinance passes, STR operators will have to notify neighbors within 200 feet and obtain both basic use permits and a business license.

We fully support this permit system that will pave the way toward understanding just how many STRs exist in our community to inform further action. We are excited that this permitting will be paired with higher permit fees and a prohibition period for those who violate this law. 

WHAT’S NEXT?

On July 17, 2023, the Town Council passed the first reading of the new ordinance. The ordinance will have to pass two more readings before it becomes law. If if passes, the ordinance will take effect until January 2024.

HOW CAN I GET INVOLVED?

Tell your Town Councilors today that you support strengthening STR regulations! Email them at council@jacksonwy.gov⁠.

FAQS

Enforcement is a huge issue for STRs. How will the new regulations be enforced?

Part of the reason why the Town Council wants to increase permit fees and fines is to support purchasing software and/or hiring staff to ensure that the new ordinance is enforced. While enforcement is paramount, we believe that enacting this stronger regulation is the first step to limiting STRs encroaching on neighborhoods. There will always be some people who break the law; that fact does not negate the importance of strengthening STR regulations.

Why should we allow any STRs outside of the lodging overlay?

We know that some locals depend on being able to rent their homes out to supplement their income. If the new ordinance passes, we will stay vigilant to ensure that the update is having its intended effect. The new ordinance’s requirements to document rentals will allow us to track how STRs affect our neighborhoods and help determine if more changes are necessary.

GENERAL TIMELINE

Last updated 8/1/23