Cities can solve this problem through zoning. Sedona does it well. Every HOA gets to decide if they are a tourist neighborhood or not. Short term rentals are e

Cities can solve this problem through zoning. Sedona does it well. Every HOA gets to decide if they are a tourist neighborhood or not. Short term rentals are either allowed or banned and you know that going in. There are many homes in tourist towns that are designed to be vacation homes. Sometimes they are 5+ bedrooms, or are located inside a resort area. Families don’t want to live in those homes and they’re not conducive to long term rentals either. Tourism zoning allows those homes to not sit empty and be taxed appropriately, while keeping short term rentals away from residential zoning areas likes parks, schools, etc. Instead you have cities passing dozens or hundreds of pages of regulations that makes no one happy. It’s led to lots of lawsuits, complicated enforcement and more bureaucracy. Simple is better. Another option is to allow anyone to rent, but cap it at 30-60 nights per year, or only during peak tourism months. It‘s enough income to supplement a homeowner’s mortgage, but not enough to make it a profitable investment opportunity.