The City of Atlanta City Council has put forward new legislation aimed at closing down short-term rentals (AKA Airbnb) within the city limits.
Real estate investing is about to suffer a big hit in the City of Atlanta. The anti-Airbnb legislation written by the Atlanta City Counsil reads:
Z-20-69 A SUBSTITUTE ORDINANCE BY COUNCILMEMBER HOWARD SHOOK, JOYCE SHEPERD, JP MATZIGKEIT, MICHAEL JULIAN BOND AND DUSTIN HILLIS TO AMEND THE 1982 ATLANTA ZONING ORDINANCE, AS AMENDED, BY ADDING A DEFINITION FOR SHORT-TERM RENTAL (“STR”) AND TO PROHIBIT SHORT-TERM RENTALS AS A USE IN THE R-1 (SINGLE-FAMILY RESIDENTIAL), R-2 (SINGLE-FAMILY RESIDENTIAL), R-2A (SINGLE-FAMILY RESIDENTIAL), R-2B (SINGLE-FAMILY RESIDENTIAL), R-3 (SINGLE-FAMILY RESIDENTIAL), R-3A (SINGLE-FAMILY RESIDENTIAL), R-4 (SINGLE-FAMILY RESIDENTIAL), R-4A (SINGLE-FAMILY RESIDENTIAL), R-4B (SINGLE-FAMILY RESIDENTIAL), R-5 (TWO FAMILY RESIDENTIAL), AND PD-H (PLANNED DEVELOPMENT HOUSING) ZONING DISTRICTS; AND FOR OTHER PURPOSES.
The legislation will be put before the Neighborhood Planning Units for comment this October, and for a vote in November.
For many travelers, short term rentals add variety and fun experiences compared to the average hotel, and also represent a more secure choice for lodging than a hotel during the coronavirus pandemic, and for many homeowners interested in maximizing return on their investment properties, an Airbnb is an excellent choice. Furthermore, short term rentals draw travelers into little-known Atlanta neighborhoods and areas in need of more interest and development dollars.
For the Atlanta real estate investing community, Airbnb has been a Godsend, providing needed exit strategy flexibility and increased income to make up for the sky-high real estate prices inside the city limits. Investors who can’t sell their flips convert them into Airbnb short term rentals, saving them from possible financial ruin. In general, the short term rental model has generated hundreds of millions of dollars in returns for investors, and the city council’s attempt to kill them off will hurt a great deal of new and veteran investors.
Furthermore, the legislation signals to Atlanta area real estate investors that the City is not friendly to their business models and will not be a credible partner towards developing Atlanta’s many blighted neighborhoods. This legislation will make the City of Atlanta less competitive and encourage development dollars to flee to the hungrier municipalities orbiting in the suburbs.
The legislation’s authors are:
If you are a real estate investor, resident or traveler who will be potentially impacted by this legislation, I highly recommend that you contact the offices of the City Council Members above, or make a comment on this legislation by emailing: email@example.com (add Z-20-69 to the subject line).