What to know before short-term renting around big destination events

Updated on October 24, 2024

Before the Great American Eclipse in August 2017, STR listings surged by up to 3,000% in the towns along the eclipse’s route, which spanned from Salem, Oregon, to Charleston, South Carolina, according to Bloomberg.

According to the Times of San Diego, the city expected an influx of 41,000 guests to short-term rentals alone between Comic Con and Pride Weekend in 2019.

Ahead of Super Bowl LVII and the Phoenix Open in February 2023, a similar phenomenon was unfolding in the Greater Phoenix area, according to FOX 10 Phoenix. The news outlet reported new hosts were rushing into the market, and a few Phoenix-area residents advertised their properties for $10,000 a night.

National sports championships, conventions, or other big events often bring a rush of new short-term rental listings and new local rules to the area.

Many new listings come from homeowners with no hosting experience who plan to temporarily rent out their homes to accommodate the influx of visitors. This can cause concern for guests, public safety servants, the professional hosting community, and neighbors.

“Temporary hosts jumping on board quickly do not have the experience or the resources to ensure safety in our communities,” said Linda Curry, the former president of Arizonans for Responsible Tourism (AZRT), a statewide alliance for STR operators. “This type of activity can pose problems to the industry reputation in addition to potentially causing disturbances in neighborhoods.”

Hosting for the first time

Hosting an STR might sound easy, but it requires knowledge of local laws, professional standards, and thorough preparation. A first-time listing also might not yield the expected amount because new hosts won’t have positive reviews.

John Hildebrand, an experienced property manager and AZRT board member based in Scottsdale, Arizona, said hundreds of homeowners expressed interest in listing their homes for the first time on Airbnb or Vrbo for the Super Bowl in 2023.

“Most of them [didn’t] understand 90% of the business,” he said.

Hildebrand tried to put the hype over hosting into perspective.

“Just because you see units advertised for $10,000 a night doesn’t mean you will get that,” Hildebrand said, “or it could mean those hosts have a lot of reviews which build trust with guests.

“There will be many homeowners who will try to make quick money and will put all kinds of work in to go live, and they might not get renters at all or will have to lower the rate.”

Finding a local short-term rental alliance or trade association can help you as a new host. These organizations can provide information, advice, and resources on hosting in your area.

For instance, the statewide short-term rental alliance, Arizonans for Responsible Tourism, featured a Super Bowl resource center on its website for new hosts in the Glendale-Phoenix area.

Checking local short-term rental laws

Before listing your property, check the local laws in the town and the deed restrictions of your homeowners association where your home is located. Many jurisdictions will revise their STR ordinance before a big event to prevent large house parties in neighborhoods.

In Glendale, where the 2023 Super Bowl stadium was located, the City Council approved new rules requiring homeowners or their property managers to register their short-term rental properties with the city.

Some counties and states, such as Arizona, also have additional STR laws. Arizona requires all STRs to have a Transaction Privilege Tax (TPT) license, and Maricopa County (where Glendale is located) requires all rentals of any length to register with the county.

To find your local laws, Google the name of your city with the keywords “short-term rentals” and “ordinance.”

State laws typically live in an online database on your state legislature’s website. You can usually find a field where you can search the keywords “short-term rentals” or “vacation rentals” to find your state laws on hosting.

You most likely will be required to pay one or more types of STR taxes, often known as an occupancy, lodging, or tourism tax. In Arizona, STR operators pay a Transaction Privilege Tax. Check with each STR platform where your home is listed and your local taxing authority to determine whether the platform is required to collect and pay these taxes on your behalf or whether you are required to file tax paperwork with your city, county, or state.

Getting STR insurance

Regardless of your jurisdiction’s laws, STR-specific insurance on your home while renting it out is critical.

Operating a short-term rental brings certain risks that aren’t covered by standard homeowners’ policies. These gaps in coverage in homeowners’ policies are known as exclusions and can range from liquor liability exclusions to trust exclusions. A trust exclusion means that the insurer will not cover intentional damage by your guests after you entrusted your home to them. When calling insurers, it’s important to take time to understand what’s included in your policy and what’s excluded.

Proper Insurance offers free consultations to help you understand your coverage and ensure you have what you need.

Setting and communicating house rules

If you decide to list your home after learning and complying with your local and state regulations, it’s your turn to set the rules for your home. House rules, included in your guestbooks on STR platforms, protect you, your home, your guests, and your neighbors.

Rules on quiet hours, guest and vehicle limits, parking, garbage disposal, and pets should be included, as well as the consequences for not adhering to these.

Documenting the rules isn’t enough. It’s important to make sure your guests have read and understand the rules. While you can require guests to acknowledge the rules in writing, it’s also helpful to maintain good communication with guests before and during their stay.

“If the guests are aware of the house rules and consequences of not following them, expectations are clear,” Curry said. “Continuing proper communication with your guest during their stay is also important to not only maintain a personal relationship with them but address any issues quickly.”

Being a good neighbor

During the Super Bowl or other large events, your home may become noisy, which could distress your neighbors.

“Most of the temporary hosts rent out their homes and leave town for the week,” said Janaya Goselin, an AZRT board member and real estate professional. “They may not have a way to respond should an emergency occur. Without systems in place to prescreen guests or to monitor noise in their homes, their homes may become party houses, or worse, which leads to bad press, leaving other hosts and the AZRT having to do damage control.”

Notify your neighbors that you plan to host guests and give them your contact information in case any problems arise. If you plan to leave town during the event, make sure you have a designated person in town to respond to emergencies. Let neighbors know in advance the steps you have taken to prevent guests from causing nuisances in the neighborhoods and how you will respond if there is a problem.

“If your neighbors have your contact information, they can call you to fix any issues quickly rather than engaging law enforcement,” Curry said.

Using a noise-monitoring device like NoiseAware inside the home is one way professional STR hosts prevent things from getting too loud. The devices measure decibel levels and notify the owner or property manager when the noise inside or outside the home exceeds a preset decibel limit. Then, the owner or manager can contact the guests to ask them to reduce the noise.

Watching out for red-flag guests

Properly vetting guests is another way to protect yourself, your home, and your neighbors, Curry said.

Ignoring red flags could land you in legal trouble or make you the subject of a 311 complaint. While major STR platforms have some guest identity verification systems, they can sometimes miss high-risk guest indicators.

Keep an eye out for red flags such as missing profile pictures, incomplete or odd names, peculiar email addresses, and new profiles without reviews or with only one review. While none of these alone are grounds for rejecting a booking, they should prompt you to scrutinize the guest further.

Call your guests on the phone to see how willing they are to speak with you. Make sure the guest’s credit card information matches the guest’s name and that the credit card is issued from the country where the guest claims to be located.

Be hyper-vigilant about large groups of unrelated adults, especially those who live locally. In the case of the Super Bowl, a group of unrelated adults might be expected, but it could also signal plans for a party that could get out of hand. Also, look for inconsistency in the stated number of guests and the property’s occupancy.

Professional hospitality standards are essential

Though many new hosts temporarily rent around big events, short-term rentals have largely become professionalized, and guests expect professional standards. That includes hospitality-quality linens, professional cleanliness, and in-demand amenities.

Even if you plan to rent occasionally, treat your rental with this care and consideration. These additional resources can help you get started on the right note:

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