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. 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. 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. 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. 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. 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. 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