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by Richard R. Sylvester (Author)
This book describes intriguing issues raised by the sharing economy which has resulted in rapid financial growth for several internet firms, such as Airbnb and Expedia/HomeAway, which have rapidly become larger than major hotel chains. The impending surprise is the current economic disaster that is resulting from overreaching of city laws designed to raise city tax revenue, but instead are now causing severe damage the local and national economy.
The rapid growth of short-term rentals resulted in aggressive response from hotel workers unions and low-income persons who want minimal rents. Nationwide, looking to their next election, city executives recently passed new draconian city ordinances which now impose severe restrictions for short-term rentals. This book shows how these new city laws clearly violate the essential rights and liberties guaranteed by the U.S. Constitution. Class action lawsuits have not yet resulted in correction, because the weakened funding for state court systems has resulted in a critical reluctance by major law firms to litigate these issues.
The book includes detailed data on the major impact on the economy, and why investors must now consider the investment risks caused by the unusually strict local regulations. Each property owner must now understand their Constitutional rights, the impact of the faulty city ordinances, and the critical personal investment decisions required to avoid major losses. Most investors must shift their investment strategy and political choices to match the new paradigm of the sharing economy.
As greed, many cities view the economic growth as an opportunity to tax and restrict. New city ordinances now impose severe restrictions for short-term rentals, which appear to violate the essential liberties guaranteed by the U.S. Constitution. The new city laws have a major impact on the total economy, and now cause many major investors to rethink their construction investments which are necessary for full economic recovery.
Like the canary in a mine, this book gives clear early warning of the foreseeable economic disaster resulting from city greed in their search for more tax revenue. The book shows how police power used for zoning laws and local tax revenue corrupts, to the point where the new city laws appear to violate state constitutions and the U.S. Constitution.
The book includes a clear historical review of property rights, where even the king could not enter a home without the owner's permission. As a major change, recent restrictive city ordinances take away the inherent right of an owner to rent property for less than 30 days.
Some cities, such as Santa Monica, now ban most short term rentals, which results over the next decade in loss of rental income to owners of rental property in Santa Monica of $207 million, and $727 million loss to the local area. Nationwide, the economic impact of short-term rentals on a scale similar to the federal expenditures designed to stimulate the economy.
The book explains better solutions to low-income housing, and methods which result in much higher city tax income without lodging taxes. Because tourists are price-sensitive, lodging taxes require spending of most of the loding tax income on advertising to offset the loss of tourism resulting from the higher lodging price.
