The Sedona Lodging Council’s Stance on Short-Term Rentals

Estimated Read Time: 2 Minutes

As Sedona continues to navigate the complexities of its booming tourism economy, a distinct voice has emerged in the conversation about housing and neighborhood integrity: the Sedona Lodging Council.

For homeowners and prospective buyers in the Verde Valley, understanding the local dynamics of Short-Term Rentals (STRs) is crucial. While STRs (often listed on Airbnb or Vrbo) offer income potential, the Lodging Council—which represents traditional hotels and bed-and-breakfasts—has raised significant concerns regarding their proliferation.

The Core of the Conflict: A "Level Playing Field"

The Council’s primary objection is not against competition, but rather what they view as an "uneven playing field." Their research and public statements argue that STRs often operate as "mini-hotels" within residential neighborhoods without facing the same rigorous regulations as traditional commercial lodging.

Key points from their advocacy include:

• Regulatory Disparity: Hotels must adhere to strict safety codes, ADA compliance, and commercial property taxes. The Council argues that STRs frequently bypass these costs while reaping similar commercial rewards.

• Neighborhood Impact: The Council has highlighted how the conversion of long-term housing into transient lodging contributes to Sedona’s workforce housing crisis, forcing service workers to commute from further away and altering the quiet character of residential streets.

The "Fight" for Local Control

The Lodging Council’s "fight" is largely diplomatic but firm. They have historically lobbied for the return of local control, pushing back against state legislation (like SB 1350) that previously stripped municipalities of the ability to regulate STRs.

Their strategic approach involves:

1. Educational Forums: Organizing community events to present data on how STRs affect housing stock and neighborhood density.

2. Strategic Pauses: In a bold move to manage over-tourism, the Council has previously recommended pausing certain marketing expenditures to let the city "catch its breath," signaling that they prioritize sustainable growth over unchecked visitor numbers.

What This Means for You

For buyers looking at the Sedona market, this political landscape suggests that the "wild west" days of unrestricted STRs may be tightening. With the Lodging Council and the City aligned on preserving community character, we can expect continued pressure for stricter enforcement and potentially new regulations on vacation rentals.