Report lays out costs of banning short-term rentals,

Ottawa County property owners who oppose a ban on short-term rentals have a new argument in their favor: A report from a research unit at Hope College outlines some costs of the ban, which could affect rental owners, visitors to the area and local businesses.

The report from the Frost Research Center at Hope College examined the economic impact of Park Township’s ban on short-term rentals, which has been stayed during a court battle. It found that 58% of respondents who rent property on a short-term basis receive between $10,000 and $50,000 annually from the practice.

The report also estimates the amount guests who use short-term rentals spend in the area. “A hypothetical STR listing that hosts two adults for 12 weeks out of the year is associated with an estimated $14,112.”

The Frost Center surveyed local businesses and found more than two-thirds of respondents said short-term rentals had a positive impact on them. More than 60% said a ban could have long-term negative effects. Some businesses, notably restaurants, reported that a significant portion of their income came from tourists.

A ban could harm local residents, said one of its leading opponents. “Local residents might not consider the effects that a reduction in tourism could have on their own day-to-day lives in terms of the restaurants, retail and service businesses they personally use,” Jeremy Allen, president of Park Township Neighbors, said in a press release. Park Township Neighbors is a nonprofit created by property owners to combat the township’s ban on short-term rentals. In November 2022, trustees voted to enforce the ban, which had been on the books but not enforced since 1974.

The association recorded a win in circuit court after Judge Jon Hulsing ruled in December 2023 that the zoning law could not be enforced until the lawsuit is settled.

Harold Fink, township supervisor, told CapCon in an email that he could not comment, due to the ongoing litigation.