10 Best Practices for Local Governments Managing Short-Term Rental Complaints

Although some short-term rental (STR) platforms have implemented measures to help address common concerns like unauthorized parties, any complaints against STRs—including those around parking, trash, and noise—can contribute to a loss of community support.

If complaints go unaddressed, communities may resort to passing local ordinances that prohibit short-term rentals from operating in certain areas and lose out on potential tax revenue and tourism appeal.

Addressing these concerns effectively is pivotal to maintaining harmony and satisfaction within a community. Here are 10 best practices for local governments that are managing STR complaints to consider.

1. Implement a Regulatory Framework That Meets Your Community’s Needs

Before responding to complaints, it can help to have a solid regulatory foundation in place. For many communities, this means clear, detailed, and enforceable regulations governing short-term rental operations. Whether that’s about permissible noise levels, parking rules, maximum occupancy, or waste management, clear rules help set expectations for both STR operators and neighbors.

2. Empower the Community With a 24/7 Complaint Hotline

It’s safe to say that STR complaints don’t always occur inside the 9-5, Monday through Friday window. Whether it’s an after-hours noise complaint or a visitor’s car parked in the wrong spot during the weekend, the unpredictability of issues arising from short-term rentals necessitates an always-on response mechanism.

A 24/7 complaint hotline offers community members an immediate avenue to report disturbances. This allows for issues to be quickly addressed and reinforces trust within the community by assuring them that their concerns are a time-sensitive priority. Plus, every call logged provides a systematic record, helping local governments identify recurring problems or repeat violators. This documentation can be essential for any escalatory steps or policy revisions.

3. Provide Transparent Communication Channels

When it comes to STR complaints, communication is critical. Once a complaint is received, both the individual filing the complaint and the STR owner should be kept in the loop. Informing both parties about the complaint status, the steps toward resolution, and any resulting actions being taken can go a long way. This helps to foster greater trust and provide clarity on the complaint process.

4. Implement Clear Escalation Pathways

For those instances where gentle reminders don’t suffice, having a clear escalation mechanism becomes critical. Depending on the jurisdiction, this can range from formal notifications to increased inspections or even fines for certain violations. It is important that these escalation pathways are communicated clearly to both the community and the short-term rental owner so there is greater transparency.

5. Maximize the Insights Pulled From the Data

Utilizing software to manage and analyze complaint data can provide invaluable insights to local governments. Understanding peak complaint times, areas of high disturbances, or patterns in violations can help agencies fine-tune regulations and deploy resources more effectively to address community complaints.

Aside from addressing complaints, technology can also be employed to gather feedback about the resolution process. Getting a sense of community satisfaction levels and identifying areas of improvement can help guide training programs and policy adjustments.

6. Effective Prioritization of Complaints by Assessing Urgency

Just as not all tasks can be outsourced, not all STR complaints are as problematic as others. A car blocking a driveway at night demands more immediate attention than a minor landscaping issue. Being able to swiftly assess and act on complaints based on their urgency helps ensure the efficient use of resources and leads to better community satisfaction.

Implementing a prioritization checklist and using a system to track complaints can enable agencies to identify the properties with repeat offenders to help determine the next steps and whether intervention is required.

7. Consider Hiring or Training a Dedicated Employee for Complaint Responses

Some local governments opt to have a dedicated or trained point person to help address STR-related complaints. This role might specialize in handling these kinds of calls, and the person is likely familiar with local short-term rental regulations, steps to resolution, and efficient communication methods.

Having dedicated response personnel on the ground is helpful, as they often have knowledge of local neighborhoods and STR hotspots. This familiarity can help in providing quick resolutions with a strong contextual understanding of complaints.

When a complaint arises, having someone deeply knowledgeable of your community’s STR ordinances, such as a compliance officer, can make all the difference for an effective response.

8. Regular Review and Revisions for Dynamic Regulations

Just as the STR landscape is continuously evolving, so should the regulations governing them. Some local governments reconvene to regularly review and update policies to keep them aligned with current challenges, insights pulled from the collected data mentioned above, and community expectations.

9. Provide Community Education, Outreach Workshops, or Seminars

Organize informational sessions to educate STR operators about regulations, best practices, and community expectations. Such proactive measures can significantly reduce the number of potential violations as well as improve community trust.

Encourage STR operators to maintain open communication channels with their neighbors. Sharing contact details or setting up neighborhood WhatsApp groups can aid in resolving minor issues amicably without formal complaints.

10. Collaborate and Partner With Short-Term Rental Solution Providers

Lastly, local governments should consider collaborating with popular STR platforms directly on ways to avoid complaints. These platforms can be instrumental in disseminating requirements to STR operators and renters from the start of the listing and booking process.

This type of collaboration can include providing regulations and important rules, outlining tax obligations that are specific to certain jurisdictions, or conducting joint training sessions.

Is Your Agency Managing Short-Term Rental Complaints Effectively?

Managing complaints related to STRs isn’t merely about finding a fast resolution but rather about fostering community trust, promoting harmony, and facilitating a thriving local economy.

By embracing best practices for handling complaints and leveraging a trusted short-term rental solution that offers a 24/7 complaint hotline, local governments can strike a balanced approach, so the rise of STRs translates into benefits for their communities.