Saratoga Springs group calls for officials to examine impact of Short-Term Rental proposal

SARATOGA SPRINGS, N.Y. — The conversation around the newly proposed Short-Term Rentals legislation continued Monday, with Saratoga Springs Rental Rights Alliance (SSRRA) calling for “caution and common sense” from city officials.

At a press conference held in front of City Hall, members of the SSRRA called for Saratoga Springs City officials to slow down and examine the impact of the proposed rules on the city’s economy.

“We are calling for caution and most importantly, common sense in addressing this issue,” Anne Smith, a mortgage broker and member of the SSRRA, said at the press conference. “While we acknowledge the need for regulations, we urge the city to slow down and thoroughly examine the potential impact on our economic climate and residents.

“Short-term rentals have been a part of Saratoga Springs history. They provide homeowners with the means to supplement their income, and they contribute to the vibrant fabric of the city and the whole nature of Saratoga Springs.”

The members shared their primary concerns, primarily regarding the legislation’s impact on the lodging base in the city during the peak tourist season as well as the worry that proposed regulations may have a disproportionate impact on residents, specifically with the $1000 biennial registration fee.

“The proposed $1,000 biennial registration fee, for instance, could pose a significant financial burden for many, especially when you compare it to the $150 nominal fee for large hotels,” Smith said. “Moreover, restricting short-term rentals could limit Saratoga Springs’s accessibility as a destination, particularly for families and seasonal visitors who rely on those accommodations.

“It is imperative that any regulations strike a balance between accountability and accessibility of the town.”

The members of the SSRRA shared that members of their alliance so far have spoken with Commissioner of Public Works Jason Golub, Mayor John Safford and Public Safety Commissioner Tim Coll.

When asked what the ideal compromise would be between their idea way forward and the proposed legislation, SSRRA members shared it was “more research, more conversation and maybe bringing in the voice of the public instead of the five commissioners.” They also asked those who have stayed in a short-term rental or an Airbnb in Saratoga, to reach out and sign the SSRRA petition via change.org.

“I think that we need to really understand over a long term, maybe put a task force together or something and see what the economic impact would be with certain regulations in place,” Elizabeth Connors, a short-term rental owner and member of the SSRRA, said. “We are a very unique town. We are lucky enough to have a bustling college and then we also have summer vacation rentals and that’s not something that a lot of places have.

“So I think that this whole scenario needs to be looked at very carefully and it’s very complicated.”

SSRRA provided an outline of what they are asking of City Officials, including:

1 — A study of the impact of the proposed regulation on the city’s economy.

2 — A thorough examination of the cost of the proposed regulations and the city’s ability to carry them out.

3 — The establishment of a cross-sectional working group to examine the proposed regulations and proposed agreeable changes.

4 — A reconsideration of the $1,000 fee.

5 — A reconsideration of the requirement that rentals be ‘owner-occupied’ as that term is defined in the proposed regulations.

“We currently own a short-term rental on the east side. We’ve owned this for six years, we’ve had over 1000 stays and five-star reviews and we view this as our pride and joy in our short-term rental small business,” Sean Connors, a local short-term rental owner, shared at the press conference.

“We feel that these new legislative laws would hinder small business owners from making their own decisions in operating a small business under much stricter restrictions. We feel that this new legislation will put owners in a situation where they’re going to have to make decisions on whether they stay open or close because of this $1,000 fee. We feel like there’s a violation of the Fourth Amendment and that this should be carefully looked at.”

Another person who commented on Short Term Rentals was Saratoga County Chamber of Commerce President Todd Shimkus, who released a written statement stating while he applauds Accounts Commissioner Dillon Moran and his staff on the work that has been done over the last 18 months, the registration fee in his opinion is too high.

“We agree that STRs should register with the City and be required to provide proof of insurance, a local emergency contact for the property and to allow for an inspection by the Fire department,” Shimkus said. “ The proposed $1000 registration fee, however, is too high and should be reduced. Local homeowners who rent their home just for a couple of weeks as is tradition in Saratoga Springs should be allowed to continue to do so. Where visitors stay is where they spend their money so protecting the rights of people to operate STRs is important in our local economy. “

“STRs are a business and City zoning must balance the legitimate concerns of people living in residential neighborhoods where some STRs — mostly those operated by absentee landlords — cause nuisance issues and relation to traffic, parking, noise and trash.”

Moran, who proposed the Short-Term Rental Legislation discussed some of these concerns following the press conference. One of the things he touched on was the $1,000, which he called a “legitimate claim.”

With the recent integration of what is being called “Host Compliance Software,” the first report having come in last Friday, Moran shared that as of February of 2024, there were 1,287 rental properties in the City of Saratoga Springs. Moran also explained that of these 1,287 properties, 95% were whole house rentals and 5% or less were rentals happening within one’s home.

With this knowledge in mind and after re-examining Moran shared that a “sliding scale” of fees could be utilized. For example, he stated that those apart of the 5% renting within one’s home or renting for a couple of weeks is going to be on the low end of the scale, and could cost $0, and as one moves further up the spectrum of commercial activity, the fees will graduate with that.

The idea of a “sliding scale” was brought up during the press conference, and the SSRRA stated that this was something they were not in favor of and that they want a lower, concrete fee as opposed to the $1,000.

“There are other vacation rentals as well as that charge $1,000 or less per year, and then when you do have additional regulations you’re asking for other issues too, such as ceiling heights or situations where we would have a code enforcement officer come into your home and tell you that you can’t rent a bedroom because it is not seven feet tall,” Sean Connors said. “Those regulations don’t happen if you’re a long term rental.”

Another argument made regarding the fee is it is much higher than in other municipalities.

One of the reasons for this, Moran explains, is because currently the city is unable to collect sales or bed tax. However, the proposed State Budget currently authorizes the collection of short-term rental sales tax and Morran says if the budget passes and there is the ability to collect sales tax, that would address many of the fee issue being discussed, because the main purpose of the registration fee was to provide remuneration.

“The city of Saratoga Springs currently collects zero revenue associated with short-term rental,” Moran said. “The only thing we have the current ability to collect is a registration fee, and that’s why it’s there. That’s why this is different from Lake Placid and Lake George and all these other communities that collect bed tax, that collect sales tax should they have that ability within their municipality.”

Another thing Moran discussed was an “owner-occupied plus one” concept added where residents can have another property that they do short-term rentals. There are also plans to reach out to Skidmore College to understand off-campus housing needs moving forward so there can be a cognizant knowledge about the scenario where there is a shoulder season for a student and a short season that could be a short-term rental.

“What I have a problem with there, there’s homes that sit empty for long periods of time. That’s not the highest and best use of housing stock,” Moran said. “The highest and best use of residential housing stock is for residences to be filled with human beings who then commerce within the city, their children are in our schools and that they support every single day, not 100% during our high season, but every day they’re here in town they’re buying gas or shopping for their groceries.”

Another thing stated during the press conference is that the SSRRA greatly prefers the state-proposed legislation in comparison to the city-proposed one, explaining it believes the state legislation is “a whole lot less impactful and restrictive.” Moran countered he copied the state’s legislation exactly and is perplexed by the way people seem to think he is trying to take short-term rentals away when he intends to fully legalize it.

“What I’m concerned about is corporate ownership. People say it doesn’t exist, but I have people sending me letters confessing to the degree with which it exists,” Moran said. “Again, I’m not talking about eliminating it (short-term rentals) and this is the strangest thing to me, these people are angry as can be and they think I’m eliminating it. No, that’s not what I’m doing. I’m legitimizing it.”

The proposed legislation has not yet been voted on by the City Council, with the public hearing remaining open. The City Council next meets on Tuesday, March 5 in the Music Hall on the third floor of City Hall at 7 p.m.