“A person’s home is their castle” is an old idea brought to us from Roman times. Codified in English common law in the 1760’s by Sir William Blackstone, his writings were very influential in the creation of the American legal system. Simply put, it means people have the right to do what they want in their own homes, and that others have no right to interfere in their private lives. While good in theory, in practice it has always been challenged — in the bedroom, in worship, one’s skin color, and even the height of your lawn grass.

So is the case with short-term rentals (STR) and those seeking to limit it as a way to fix the long-term rental market and housing crises. But as I will explain, instead of more laws to limit homeowner’s rights we should be asking another question: Why are homeowners choosing to have strangers come and go into their homes, and spend significant time, energy and money to be STR hosts, rather than having the stability of a long-term tenant? My anecdotal inquiries indicate little to no difference in net income between the two options. Perhaps hosts love the flexibility of STRs, or the networking aspect of it or that their spaces are not really conducive to full-time rentals. Or perhaps, tenant rights and regulations in New York State and Kingston have become so landlord-hostile, it dissuades homeowners and they chose instead to be STR hosts.

Short-term rentals, dominated by the online company Airbnb and to a lesser degree Vrbo, intersect with many big issues in Ulster. Property rights, tourism growth, housing availability, community standards, class conflict, the digital economy and other issues are at play with STRs. A proposed state law, co-sponsored by state Sen. Michele Hinchey, currently sits on Gov. Hochul’s desk awaiting her signature. It will introduce new statewide STR rules and for many Ulster communities, potentially adds another layer of government oversight to what was not long ago an entrepreneurial cottage industry. It’s now a billion-dollar industry in New York State, without even counting New York City.

The proposed state bill would require STR owners to register their units every two years, and give detailed information on their operations, including what they charge. It will also allow municipalities to collect state and local sales and occupancy taxes. As a leader of the bill, Assemblymember Pat Fahy said it’s intended to “level the playing field” and “motels and hotels are paying sales tax and occupancy tax on who is staying there, and we need the same from short term rentals.”

Sounds like talking points from the hospitality industry. While most hotel operators at first didn’t view STRs as a competitor, that is slowly changing as the industries increasingly converge. For example, hotels are adding amenities like remote work spaces, while short-term rentals are offering concierge services.

For now, we are told that the state legislation is mostly about information-gathering to better understand how the industry is operating. But if past is prologue, we can surely expect additional regulations to quickly follow once the initial metrics are reviewed by the state.

Aside from requiring more paperwork and likely additional fees, the proposed law will result in additional insurance costs for STR homeowners at a time when homeowner insurance prices across the state are skyrocketing. The bill also prohibits municipalities that haven’t already set up their own STR laws from doing so moving forward. As such, this bill gives the state authority over a land-use matter — odd given we are in a “home rule” state where towns typically take the lead on matters such as zoning. But let’s not get bogged down on such messy details for the moment.

In Ulster County, many municipalities have already set up rules for STRs. Some towns limit the total number of permits available and have a waiting list. They also include permit fees. For example, Woodstock’s permit fee is $400 a year plus $50 per additional bedroom, much higher than elsewhere. Maybe Woodstock only wants certain kinds of STRs in their community.

Kingston’s is $125 for a permit. Some towns have limited the number of days a year STRs may be operated. And there are costly punishments for unregistered ones — in Kingston, the fine is $1,000 for the first instance, $5,000 for the second instance and $7,500 for a third or subsequent instance.

During COVID, STRs took off in rural and out-of-the-way places. With GPS, back roads are no longer daunting: Just follow the yellow brick road right to the door of your Catskills weekend getaway. This has been manna from heaven for many rural areas, offering a new financial lifeline and opportunity. For many hosts, especially seniors and those on fixed incomes, it can be the difference between staying in their house and having to sell and move elsewhere. It can make communities that were once off the beaten path of tourism and economic development planning suddenly more popular, allowing micro-economies to form and add new revenue and interest. Can we say “Ker-Hamptons”?

When discussing STRs, we must distinguish between “owner-occupied” and “not occupied.” Most STR problems would appear to happen at non-owner-occupied homes. Ever since the Great Recession of 2008, hedge funds have been quietly buying up huge numbers of single-family homes, often concentrated in neighborhoods enough to influence local markets. Such homes can and are used for STRs. These property owners are driven by Wall Street market forces, not local community standards. And there are other scenarios where absentee owners of STR properties seem to care little about the communities in which they host. Such operations should receive higher scrutiny and restriction.

To neighbors of short-term rental properties, the extra traffic and noise can be perceived as infringing on their quality of life. It can subtly change the character of a neighborhood. I’m sympathetic to these feelings; they should be taken into account. But to rationalize the idea that forcing homeowners into providing long-term rentals instead of STRs to solve our housing crises also feels wrong. Before we limit people’s rights and livelihood, and further erode the principle of one’s home is their castle, let’s take care not to ruin what has turned out to be a lifeline for many, and an economic boom for our rural communities.

Raleigh Green is a local business owner specializing in marketing communications consulting and services. If you enjoy this column, please “like” it on social media and share online.