The vacation rental market is a multi-billion dollar industry, but most of Las Vegas' cities and towns don't participate in it.
Most municipalities don't allow short-term rentals or limit them significantly. Henderson's city council voted to be the first to allow them and to regulate them.
"We have to do something to be able to regulate these," Ward 4 Councilman Dan Stewart said during the committee meeting. "We can't do it right now. If we just don't do anything, we're just sticking our heads in the sand and it's just going to keep being the way it is."
Councilman Stewart is referring to the belief that there are many short-term rentals already happening in Henderson and around the area, in violation of city rules.
The city of Henderson expects to bring in nearly $370,000 in revenues by allowing these rentals to happen in a regulated, above-board market.
Henderson's new rules call for an $820 registration fee to be paid for each rental. The home can now be anywhere in the city regardless of zoning. Up to this point, Henderson only allowed short-term rental in commercial tourist zoning areas.
Other provisions include:
- Homeowners will be required to carry insurance.
- They must take a class.
- All rentals must be for a two-night minimum.
- A note must be provided saying that the rental does not violate the homeowner's association rules.
- State-licensed property managers don't have to take the class.
- Rentals can't be for weddings, private events, or parties.
The regulations will become effective on October 14. There is an expectation there will be fewer rentals in the city simply because there will be rules and costs associated with the activity. There are also fines now attached to not following these rules.
The city will employ a third-party firm to monitor rental websites for illegal in-city rentals.
A complaint hotline will be setup for neighbors to call and complain. Someone associated with the property will be contacted within 45 minutes and must resolve any concerns within 2 hours.
The city council voted unanimously to pass these new rules in an effort to control an industry that already exists in the city, but was going unregulated.