KENT—With its charming Main Street and abundant boutiques, Kent is a magnet for second-home owners and daytrippers alike. But it is hard on those who want to live here.
A recent survey by Kent Affordable Housing revealed a market with virtually no apartments or homes for rent that are affordable for workers employed by local businesses. At the same time, approximately 20 homes are being advertised as short-term rentals on sites such Airbnb and VRBO.
“There are trade-offs,” said Kent Affordable Housing President Justin Potter. “It’s a positive benefit for tourism, but there are big consequences for the local rental market. I think there are a lot of benefits to having them on the books so towns can see how many there are and regulate short-term rentals, but it’s somewhat of a gray area.”
Indeed, most town officials do not know just how many homes in their communities are being used for short-term rentals, creating what Kent First Selectman Marty Lindenmayer termed “a shadow economy.” At present, regulations governing short-term rentals vary from town to town and, if they are controlled at all, it is either through zoning regulations or ordinances. This past legislative session, the General Assembly enacted a new law that allows cities and towns to establish a short-term rental license through ordinances.
Lindenmayer sees short-term rentals as both an asset and a detriment for a “destination town” with no nearby hotels or motels. “I celebrate that we are a destination town that attracts a lot of tourists and that has three private schools with parents that come to town to visit their kids or for reunions,” he said, but he conceded the growing prevalence of short-term-rentals “is worth having a discussion about.”
It is a discussion being had in cities and towns across the nation as short-term rentals further squeeze housing markets. Critics of short-term rentals argue they price out local residents and prospective homeowners and can cause a myriad of issues for neighbors. Popular tourism cities such as New York, New Orleans, Santa Ana and Denver have already implemented restrictions or imposed outright bans, for short-term rental properties, but Connecticut towns have been slow to respond.
Nearby New Milford is an exception and is currently looking at the issue. “We have been discussing it with town counsel and set up a small subcommittee to do outreach,” said Mayor Peter Bass. “We’re looking more at the safety component. Most of the short-term rentals are around Candlewood Lake and some of the renters come from more urban areas. They don’t know how to do things like use a propane grill. We want to make sure it is safe for people coming in and for the neighbors. If we make it a regulated activity, it will be good for everyone.”
Under the regulation, he said, the building owners would have to fill out an application, listing such things as the building’s “mechanicals,” and contact information so the town can reach the owner quickly. “By regulating, we think the experience will be a better one and will help make sure that the renters treat the neighbors appropriately,” Bass said. “With regulations, we will know who owns it, so if we get complaints about super-loud parties at 2 a.m., we can reach out immediately.”
He said New Milford has not had any problems like the one encountered in New Hartford, where an investor purchased a large property, listed it as a bed-and-breakfast, and used it under that guise as an events facility, hosting weddings, commercial parties and business groups, much to the annoyance of nearby property owners.
It is not an issue that can be handled through zoning because the facility would be grandfathered in if new regulations are established. An ordinance would be needed to effect existing uses.
“We decided to form a committee of residents and look at the issue as a whole,” said New Hartford Land Use Administrator Michael Lucas. “It hasn’t met yet, but [First Selectman] Dan Jerram put out a call for members and got back a really cool group of people with different points of view.”
Warren is also poised to look closely at the rentals. First Selectman Greg LaCava said the town has not experienced problems with short-term rentals but that “it is on our radar for the fall. We’ll discuss it with land use and review it to make sure we’re on the right track,” he said.
Back in Kent, Lindenmayer said the short-term rental market began as a barter system, where parties agreed to swap homes for a short duration and didn’t require government involvement. But then they blossomed into an industry. Today, large corporations such as Airbnb and VRBO buy up homes to use for short-term rentals. In 2022, alone, they purchased 3 percent of the nation’s single-family housing stock for this use, according to a California-based data analytics firm, CoreLogic. Smaller corporations add even more to this figure.
It is the business aspect of the rentals that concerns Lindenmayer. He noted that the residences do not pay local taxes on income from the rentals and yet municipal services such as fire protection, the sewer system and the landfill are involved.
“If they are using curbside pickup, that is fine,” he said. “But if the waste goes to the landfill and there are 15 people in a building, that makes a difference.”
Rentals listed on sites such as VBRO and Airbnb are subject to state takes however: 6.35 percent state sales tax on rental transactions and a room occupancy tax for rentals of less than 90 days,
“I think there is a place for short-term rentals,” Lindenmayer said. “We’re a destination town and there must be a place for people to stay.” But he also sees the pressure on local people in finding a residence.
“We could develop more businesses, but we need housing,” he said. “I would love to see a development with apartments. He advocated mixed-use neighborhoods where apartments could be established over businesses.
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Friendly Neighbor
August 22, 2024 at 4:27 pm
Kent is a unique and special place, known not only for its picturesque landscapes and vibrant local businesses but also for its strong sense of community. This town has worked hard to maintain a balance between preserving its charm and ensuring that it remains accessible to a diverse range of residents. Through proactive affordable housing initiatives, like the developments at South Common and Stuart Farm, Kent has made significant strides in offering housing options for people across different income levels  . However, the ongoing demand for affordable housing and the pressures on the local housing market underscore the importance of continuing to address these challenges .
As Kent continues to evolve, the rise of short-term rentals on platforms like Airbnb and VRBO presents both opportunities and challenges. While these rentals provide valuable income opportunities for homeowners and contribute to the local economy, it’s crucial that they are held to the same standards as the town’s traditional inns and other hospitality businesses. The primary concern here is safety—properties used for short-term rentals must be properly inspected and adhere to local regulations to ensure the safety of guests and the community. When these rentals operate without the necessary safeguards, they not only create an unfair competitive environment but also pose potential risks that can strain local resources.
Local inns in Kent, which are subject to strict zoning laws, regular safety inspections, and tax obligations, contribute significantly to the town’s well-being. These regulations are not just bureaucratic red tape; they are essential measures that protect both visitors and residents. If short-term rentals are allowed to bypass these regulations, it creates a “shadow economy” that benefits from community resources without contributing fairly to their upkeep. Moreover, incidents that occur in unregulated short-term rentals could place an additional burden on local emergency services, diverting resources from other critical needs.
Kent has made considerable efforts to address the affordability of housing, but the influx of short-term rentals could exacerbate existing challenges. These rentals have the potential to drive up housing costs by reducing the availability of long-term rental options, further straining a market where nearly 40% of households are already cost-burdened . Ensuring that all properties used for hospitality—whether traditional inns or short-term rentals—are held to the same standards is essential for maintaining the town’s character and ensuring that Kent remains a welcoming and inclusive place for all.
In a community as diverse and vibrant as Kent, where people from all walks of life—whether a landscaper, a camp counselor, or a Fortune 500 general counsel—can come together and share a laugh, it’s vital to preserve what makes this town special. Upholding fairness, ensuring safety, and fostering a community where everyone has the opportunity to live and thrive are paramount. By applying consistent regulations across all hospitality properties, we can protect the essence of Kent and ensure it remains a place where residents and visitors alike can feel at home.