3 Communities that are Growing TOT Revenue Using Localgov
by Shylo Bisnett, on March 11, 2021 at 11:02 AM
Local Government Short-Term Rental Administration Success Stories
Travel experts are reporting that 2021 will see a significant uptick in both leisure and business travel, and 2022 should be even bigger. Major destinations are likely spots for vacationers, but during the pandemic, short-term rental providers such as Airbnb, Vrbo, and others saw a significant uptick in interest in smaller towns off the beaten track.
More than ever, it’s important for local governments of all sizes to proactively manage its short-term rental market. Whether or not your community experiences a boom in travel, this sector requires oversight, management, and monetization. But many governments lack in-house resources to develop and refine ordinances, monitor listings and remittances, and provide the kind of online registration and payment tools to ensure quick payment by hosts.
Let’s take a look at a few Localgov clients to see how these communities took control over their vacation-rental market.
- Erie County, Ohio:
This county is located along the shores of Lake Erie and is home to many leisure travel hotspots, such as the world-renowned amusement park Cedar Point. Short-term rentals had boomed over the past few years. But while Erie County needed to get a handle on this growing sector, local leaders didn’t lacked both market understanding and an online remittance platform for taxpayers.
Localgov worked with Erie County to tailor our solution to the government’s specific needs. We also provided comprehensive training for staff and taxpayers, both during the implementation process and on an ongoing basis. Today, short-term rental hosts report high levels of satisfaction with Localgov which allows Erie County to enjoy quicker, more consistent transient occupancy tax remittance directly into its bank account.
- Hudson, New York:
Just two hours by train from New York City, this upstate spot is close enough to offer city dwellers a bucolic rest from the hustle and bustle of urban life. As a result, its short-term rental market has blossomed over the past few years. While this means added tourism dollars for Hudson, short-term rentals have also squeezed the housing market and priced long-term residents out. To balance development with this key quality-of-life issue, Hudson’s government enacted a complicated ordinance regulating short-term rentals.
Before partnering with Localgov, Hudson worked with a partner that made big promises, but failed to deliver. Technology didn’t work, and both employees and municipal staff were frustrated. Localgov got to work to develop exactly the process Hudson needed. And, along with offering the Concierge Customer Service that its taxpayers deserve, this municipality is happy.
- College Place, Washington:
A small community in the Walla Walla Valley, College Place, Washington is fortunate to have many wineries, institutions of higher learning, and solid employers. Surrounding communities, in an effort to stem a growing housing shortage, banned short-term rentals. But not College Place. Rather than banning this type of vacation option, College Place wanted to take advantage of this exclusive opportunity.
However, College Place had a serious challenge when it came to taxing its short-term rental market: they had no idea how many vacation rentals even existed in College Place—or how to find out. Enter Localgov’s lodging-revenue program. Our team of analysts combed through address and gross-revenue data from dozens of short-term rental platforms, taking a very deep dive to identify all possible listings. This revealed the complete extent of College Place’s vacation-rental market and allows the municipality to more fully collect taxes—including any applicable back taxes.
The right partner can really help drive your community’s ability to control and profit from short-term rentals. This additional revenue for your municipality is so critical during this time of crunched budgets and overstretched staff.
With Localgov’s short-term rental administration solution, you can benefit from a solution that addresses the market landscape holistically. From ordinance refinement to market auditing, technology tools for easy host registration and payment to in-depth data analysis, Localgov connects community of all sizes with critical tools needed to say on top of this rapidly evolving market.
Contact our team today to discuss your community’s vacation-rental situation and how we can help.