While hotels have traditionally held a firm grip on the market of vaca

Question

While hotels have traditionally held a firm grip on the market of vacation-goers, the emergence of companies fostering short-term rentals are dramatically changing the landscape of the travel industry. Before the advent of the modern online forum, short-term rentals were an arrangement limited by sheer logistics. Information about the availability of (and desire for) a short-term rental was difficult to transmit and share. However, with the current explosion of social media and cyber enterprise, the business model of short-term rentals has blossomed.

In 2011, 40% of travelers reported that they would be staying in a short-term rental during the year, as opposed to a traditional hotel. By 2013, this figure had jumped up to a staggering 49%. The short-term rental business is a $24 billion market, holding 8% of the total market of U.S. travel. Rapidly expanding and growing with the innovations of creative renters, the question that hangs in the air is what this means for communities. Short-term rentals have had a polarizing effect in many ways, becoming a source of joy for venturists and cause of dismay for many homeowners.

In recent news, there have been incredible scandals in which short-term renters have abused the property loaned to them, causing thousands of dollars' worth of property damage. Other accusations include disturbing the peace and the commission of criminal acts. Homeowners' Associations (HOAs) have been up in arms, and the legal backlash has been significant. New York enacted firm restrictions on short-term renters, and many HOAs now embed limits on the purposes that a space may be used for, barring short-term rentals.

However, this reaction is an over-reaction, and a detrimental one at that. Cities and towns that set  hard limits  against short-term rentals are halting the economic growth that would otherwise accompany them. Vacationers are likely to be deterred from venturing out to towns that have banned more affordable short-term rentals. While some vacationers might opt to stay at a hotel in desirable locations, as the short-term rental industry continues to grow, it will become more and more likely that vacation-goers will simply choose alternative destinations that actually allow for short-term rentals.

This is not to say, however, that short-term rentals should be completely unregulated. The key is imposing useful regulations that are mutually beneficial to both communities and to the proprietors of short-term rentals. One potential solution would be to impose reasonable taxes on visitors that use short-term rentals; having requirements for minimum stays could also ensure more consistency for the communities. This also has the added benefit of generating income for towns and cities. There is no reason why communities should see the short-term rental industry as an adversary, when it can just as easily be made into an ally.    1 
 1. The use of the  highlighted  phrase "hard limits" in the context of the fourth paragraph most closely means __________.

A. overbearing restrictions
B. useful regulations
C. restrictions that are uncompromising
D. unfair rules
E. impractical barriers

2 
 2. Which of the following, if true, best supports the author's contention that bans against short-term rentals would inhibit economic development?

A. Many vacationers enjoy short-term rentals and could visit a town or city without them.
B. The average vacationer is very flexible with respect to the types of housing that they will use when travling, which includes the use of short-term rentals.
C. All vacationers enjoy short-term rentals, but would substitute hotels if they were not available.
D. Vacationers who enjoy short-term rentals tend to spend more money in tourist destinations.
E. Many vacationers exclusively use short-term rentals and would be unlikely to visit a town or city without them.

3 
 3. The author would most likely agree with which of the following statements?

A. In general, regulations have proven to do a disservice to travel industry, as the red tape prevents commerce from moving freely, and discourages travel as a whole.
B. While short-term rentals and communities would mutually benefit from regulations, a hard ban against them would be counterproductive.
C. Although short-term rentals are popular right now, it is likely that they will diminish in value as more restrictions are enstated against them.
D. Hotels and short-term rentals complement each other and can contribute to one another's mutual development.
E. Communities should see short-term rentals as an adversary, when they can just as easily be made an ally.

4 
 4. The primary purpose of the second paragraph is to __________.

A. Provide a roadmap for the rest of the passage, given that the first paragraph served as an introductory paragraph to acquaint the reader with the topic. 
B. Emphasize the impact that short-term rentals have had on the travel industry, thereby transitioning betwen the first and third paragraphs. 
C. Argue that short-term rentals have reached their peak, and that they will never command more eminence than that which they currently have. 
D. Provide a quantitative valuation of a significant trend that would otherwise be difficult to tangibilize when drawing on subjective terms. 
E. Convince the reader that short-term rentals are the most significant development in the realm in which the housing industry and the travel industry intersect.

5 
 5. Which of the following most likely explains why Homeowners' Associations do not tend to support short-term rentals?

A. Homeowners' Associations see short-term rentals as being competition for the market of vacationers. 
B. Short-term rentals, due to the transitory nature of their inhabitants, can make the members of a community feel uncomfortable, thereby negatively impacting the Homeowners' Association. 
C. Short-term rentals do not confer a benefit on the Homeowners' Association that is comparable to that conferred on the proprietor of a short-term rental. 
D. Short-term rentals directly confer extra fees on Homeowners' Associations.
E. Homeowners' Associations, as a general policy, have always looked down upon short-term rentals because they are unsanitary.

6 
 6. The purpose of this passage is to __________.

A. advocate for a particular position 
B. explain the intersection of community and business
C. point out the weaknesses in a widely accepted point of view 
D. rationalize a negative phenomenon
E. provide an objective and unbiased point of view on a complex topic

Sajjad1994 · Answer

Explanation

6. The purpose of this passage is to __________.

Explanation

A.  This option means that the passage is trying to promote or argue for a specific viewpoint or stance. In this case, the passage advocates for the idea that short-term rentals should not be banned outright but should be subject to reasonable regulations that benefit both communities and short-term rental proprietors. This viewpoint is presented as a solution to the challenges posed by the short-term rental industry.

B.  This option suggests that the passage is primarily focused on providing an explanation of how community interests and business interests intersect in the context of short-term rentals. It would involve a more neutral, informative tone without necessarily taking a specific position.

C.  This option implies that the passage is identifying flaws or shortcomings in a commonly held perspective or viewpoint. It would involve critiquing or challenging the prevailing ideas related to short-term rentals.

D.  This option means that the passage is attempting to provide justifications or explanations for a negative occurrence or situation, possibly in a way that makes it seem more acceptable or understandable. It would involve defending or explaining the negative aspects of the short-term rental industry.

E.  This option suggests that the passage is presenting a balanced, objective, and unbiased view of the topic without taking a specific stance or advocating for any particular position. It would involve presenting facts and information without promoting a particular viewpoint.

In this case, the passage is clearly advocating for a particular position (option A) by arguing in favor of regulated short-term rentals rather than outright bans. It presents a viewpoint and supports it with arguments and reasoning.

Answer: A

Sajjad1994 · Answer

Explanation

4. The primary purpose of the second paragraph is to __________.

Explanation

The second paragraph states:

In 2011, 40% of travelers reported staying in short-term rentals (vs. hotels). By 2013, this figure jumped to 49%. The short-term rental business is a $24 billion market, holding 8% of the total U.S. travel market. It describes the industry as  "rapidly expanding and growing."  This paragraph provides statistical evidence to highlight the significant impact and growth of short-term rentals on the travel industry.

Thus, the second paragraph serves as a bridge: It builds on the introduction by concretely showing the industry's growth (supporting the first paragraph). It leads into the next paragraphs by implying that this growth has led to noticeable effects (both positive and negative), which are then detailed in the third paragraph.

(A)  It does not provide a  "roadmap"  for the rest of the passage; it provides evidence.

(C)  It suggests the opposite — growth, not peak.

(D)  While it does provide quantitative valuation, the primary purpose is not just to make it tangible but to show the scale of impact and facilitate the transition to discussing repercussions.

(E)  It does not claim that short-term rentals are the  "most significant"  development; it just shows they are substantial.

Answer: B

Sajjad1994 · Answer

Explanation

5. Which of the following most likely explains why Homeowners' Associations do not tend to support short-term rentals?

Explanation

To determine why Homeowners' Associations (HOAs) do not tend to support short-term rentals, we need to refer to the passage, specifically the third paragraph:

"In recent news, there have been incredible scandals in which short-term renters have abused the property loaned to them, causing thousands of dollars' worth of property damage. Other accusations include disturbing the peace and the commission of criminal acts. Homeowners' Associations (HOAs) have been up in arms, and the legal backlash has been significant."

This indicates that HOAs are opposed to short-term rentals due to the negative consequences associated with them, such as property damage, disturbance of peace, and criminal acts. These issues make community members (homeowners) feel uncomfortable and unsafe, which negatively impacts the HOA.

Now, Eliminate the answer choices.

A.  There is no mention in the passage that HOAs see short-term rentals as competition for vacationers. HOAs are concerned about community welfare, not market competition.

B.  This aligns with the passage: the transitory nature of short-term renters leads to behaviors that disturb the community (property damage, noise, crime), making homeowners uncomfortable and prompting HOA opposition.

C.  The passage does not discuss comparative benefits; it focuses on the problems caused by short-term rentals.

D.  There is no mention of extra fees for HOAs; the issues are related to property damage and disturbance.

E.  The passage does not state that HOAs oppose short-term rentals because they are unsanitary; the concerns are about property damage and criminal acts.

Thus, the most likely explanation is that short-term rentals negatively impact the community's comfort and safety, which is the HOA's concern.

Answer: B

nightwalkeuv · Answer

Can someone explain why in Question 1 option A is not the answer and in Question 2 how did we eliminate Choice D

guddo · Answer

1. The use of the  highlighted  phrase "hard limits" in the context of the fourth paragraph most closely means __________.

The author argues that some cities have imposed  strict bans or firm restrictions  on short-term rentals. In this context, “hard limits” refers to restrictions that leave little or no flexibility.

(A) overbearing restrictions

Incorrect. The author does criticize the restrictions as excessive, but “overbearing” adds a stronger negative judgment than the phrase itself necessarily carries.

(B) useful regulations

Incorrect. The author later distinguishes “useful regulations” from the hard limits being criticized.

(C) restrictions that are uncompromising

Correct.   “Hard limits” means firm, inflexible restrictions that do not allow much room for exceptions or adjustment.

(D) unfair rules

Incorrect. The author considers the restrictions harmful, but “hard limits” does not specifically mean unfair.

(E) impractical barriers

Incorrect. The phrase describes how strict the restrictions are, not whether they are practical.

Answer: (C)

guddo · Answer

2. Which of the following, if true, best supports the author's contention that bans against short-term rentals would inhibit economic development?

The author argues that banning short-term rentals could cause vacationers to  choose other destinations , reducing the economic activity that tourism brings. The strongest support should therefore show that some travelers would actually avoid places where short-term rentals are unavailable.

(A) Many vacationers enjoy short-term rentals and could visit a town or city without them.

Incorrect. This suggests that vacationers could still visit destinations that ban short-term rentals, so it does not strongly support the author’s concern.

(B) The average vacationer is very flexible with respect to the types of housing that they will use when traveling, which includes the use of short-term rentals.

Incorrect. If vacationers are flexible about accommodation, they may simply use hotels when short-term rentals are unavailable. This weakens rather than supports the author’s reasoning.

(C) All vacationers enjoy short-term rentals, but would substitute hotels if they were not available.

Incorrect. This directly undermines the author’s claim that bans could drive tourists to alternative destinations.

(D) Vacationers who enjoy short-term rentals tend to spend more money in tourist destinations.

Incorrect. This shows that such vacationers may be economically valuable, but it does not establish that banning short-term rentals would cause them to stop visiting the destination.

(E) Many vacationers exclusively use short-term rentals and would be unlikely to visit a town or city without them.

Correct.   This directly supports the author’s argument. If many travelers will not visit destinations where short-term rentals are unavailable, then banning such rentals could reduce tourism and the economic activity associated with those visitors.

Answer: (E)

While hotels have traditionally held a firm grip on the market of vaca

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GMAT Reading Comprehension (RC) Questions

While hotels have traditionally held a firm grip on the market of vaca

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More than Quant/Verbal Abilities: Speed vs. Accuracy

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