San Francisco Chronicle - (Sunday)

Tahoe vacation divide

Widely contested shortterm rental rules move ahead in Incline Village

- By Gregory Thomas

Art Cross was getting ready to sue his neighbor across the street. A constant stream of tourists seemed to spill out of the neighbor’s house every weekend, disrupting the peace and quiet on his block in Incline Village, a small, upscale Nevada mountain town in the isolated northeast corner of Lake Tahoe.

“I looked at retaining a lawyer to take legal action against him by the end,” said Cross, a 28year resident of Incline. In December, the neighbor sold to a new owner who Cross said is more diligent about managing the property. But it still functions as one of a growing number of shortterm rentals creeping into the neighborho­od.

“It’s changed the place we live,” Cross said. “It’s unknown and it’s everchangi­ng.”

This is life for many in Incline, whose 8,700 residents are divided by the question of how to manage the proliferat­ion of shortterm rentals in their remote community — and the endless stream of visitors they support.

Tahoe has always been a hot vacation

destinatio­n. But natural distinctio­ns between residentia­l neighborho­ods and tourist areas have been blurred as thousands of homes are offered up as shortterm rentals — known as STRs — on booking websites like Airbnb and Vrbo. The ongoing flow of visitors creates a party atmosphere in otherwise laidback communitie­s. And many locals resent it.

Tahoe’s other towns have recently set about restrictin­g or at least tracking STRs, leaving Washoe County, where unincorpor­ated Incline Village is located, as the lake’s last holdout. That’s about to change. Washoe is on the verge of approving its first STR regulation­s after two years of study and discussion. An ordinance expected to win approval from the county commission Tuesday sets occupancy limits and quiet hours for rentals and attempts to curb the loud parties, parking violations and litter that often accompany them. It would also create a permit system and require fire safety inspection­s.

“This should have been done a very long time ago,” said Washoe County commission­er Alexis Hill, who represents the Incline VillageCry­stal Bay area.

But many locals are enraged by the county’s slow response and say the ordinance attempts to treat the symptoms of a soupedup tourist market while ignoring the root causes and their longterm consequenc­es. They want a hard cap on the number of STRs, fewer rentals in residentia­l neighborho­ods, a requiremen­t that rentals are owneroccup­ied for at least six months a year and stricter punishment of violations.

Though Incline accounts for only about 5% of Washoe County’s population, it is home to more than 90% of STRs in county jurisdicti­ons. Of the town’s approximat­ely 4,000 homes, 1,065 are rented out via Airbnb, Vrbo and local property managers. Many residents say there’s an imbalance that is the changing character of their community and, one says, threatens to transform the mountain town into a “transient tourism mecca.”

“We’re seeing the hotelifica­tion of our community in real time,” said Incline resident Pamela Tsigdinos.

The pandemic has strained longstandi­ng tensions between Tahoe locals and tourists as people from urban areas seek refuge from contagion in the mountains.

“With everyone not being able to travel internatio­nally, Tahoe is carrying an increased burden of tourism,” Cross said. “It has gone through the roof with COVID.” Overwhelme­d by complaints, Tahoe’s other destinatio­ns have set new rules on STRs in recent months or are in the process of curtailing their spread.

Truckee and Placer County launched permitting programs and beefed up enforcemen­t efforts last year. In South Lake Tahoe, the number of STRs will be reduced from 1,400 in January to 400 by year’s end. El Dorado County recently imposed a limit on the number of allowable STRs in the southwest corner of the Tahoe basin.

In February, Washoe County’s neighbor, Douglas County, which encompasse­s the cluster of casinos across the border from South Lake Tahoe, moved to temporaril­y suspend new STR permits and issue $20,000 fines to hosts who rent without a permit.

“The big fear we have is, as every single community around Lake Tahoe puts in stricter oversight and tighter restrictio­ns, it’s going to push more tourists into Incline,” Tsigdinos said. Already, visitors can cause Incline’s population to more than double on popular weekends.

Some in Incline say the problem has been allowed to fester because their town is relatively small and isolated from the bulk of Washoe residents outside the Tahoe basin. Plus, none of the county commission­ers live there.

Also, they say, the county is reluctant to limit the number of STRs because it could jeopardize the flow of lodging taxes from Incline. Airbnb, for example, has helped Washoe County collect $4.9 million in taxes in the past five years, according to a statement from the company.

“We are essentiall­y being used as a pawn to derive income for the county and for Airbnb,”

Tsigdinos said. “Yet we are the ones who have to endure the thousands of people who flood into our community.”

Incline residents’ frustratio­n was on display at a public reading of the ordinance in February. Dozens of locals queued up on a Zoom call to urge commission­ers to set a quota on STRs. About 600 people submitted written comments online.

“This might be the most robust public engagement process that Washoe County has ever undertaken,” one commission­er said during the reading.

Several residents claimed that homes are being purchased by outoftown investors and converted into fulltime STRs at an alarming rate. Some say they feel surrounded by houses that operate more like motels.

“I’d like to ask you, does hosting 15 to 20 transient people on your same block ... does that sound like a balance of competing interests?” Incline resident Steven Berg asked commission­ers during the call. “That’s not the reason we bought a house in a singlefami­ly neighborho­od.”

A small number of rental advocates weighed in, including a representa­tive from Airbnb, who asked the county to reconsider a provision requiring inperson property inspection­s and permit registrati­on forms and fees. In a statement to The Chronicle, Expedia Group, which owns Vrbo, said the Washoe “compromise strikes the right balance for the vacation rental community and local neighbors.”

A man who identified himself as a recently divorced airline pilot named Art spoke up in defense of rentals. He said income from renting out his house helps him pay for his children’s college education.

“Not everybody is living in San Francisco and owning an Airbnb in Incline,” he said. Though many U.S. cities have severely restricted or banned STRs in recent years, Washoe

“The way I know we’ve hit the middle with this ordinance is that nobody’s happy right now.” Mojra Hauenstein, director of planning and building for Washoe’s Community Services Department

County leaders say stricter measures could expose the county to litigation from homeowners. The outcomes of property rights battles over STRs elsewhere could serve to inform Washoe County’s regulation­s, Hill said.

“It’ll be interestin­g to see what happens with other communitie­s that have put through stricter rules,” she said.

Assuming the ordinance passes on Tuesday, rental hosts will have until May to register their properties with the county, and the program will take effect in August. Washoe commission­ers say they intend to revisit the ordinance in November to deal with unanticipa­ted issues.

“We’re asking the residents to just try this,” said Mojra Hauenstein, director of planning and building for Washoe’s Community Services Department. “Then we’ll come back with empirical data to show what has worked and what hasn’t worked.

“We’re trying to balance both sides,” she added. “The way I know we’ve hit the middle with this ordinance is that nobody’s happy right now. We don’t have Airbnb happy, the Realtors happy or the community happy. So we must be on the right track.”

 ?? Photos by Max Whittaker / Special to The Chronicle ?? Incline Village, Nev., on the northeast corner of Lake Tahoe, is about to approve new shortterm rental regulation­s.
Photos by Max Whittaker / Special to The Chronicle Incline Village, Nev., on the northeast corner of Lake Tahoe, is about to approve new shortterm rental regulation­s.
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 ??  ?? Art Cross, who lives in Incline Village, says tourists staying in rental homes have disrupted and changed the neighborho­od.
Art Cross, who lives in Incline Village, says tourists staying in rental homes have disrupted and changed the neighborho­od.
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 ??  ?? Shortterm rentals, above, in residentia­l areas have proliferat­ed in Incline Village, Nev., right, on the shore of Lake Tahoe, bringing a parade of tourists who often bring a party atmosphere, upsetting the neighbors.
Shortterm rentals, above, in residentia­l areas have proliferat­ed in Incline Village, Nev., right, on the shore of Lake Tahoe, bringing a parade of tourists who often bring a party atmosphere, upsetting the neighbors.
 ??  ?? About 25% of the town’s 4,000 homes are rented out via Airbnb, Vrbo and local property managers.
About 25% of the town’s 4,000 homes are rented out via Airbnb, Vrbo and local property managers.
 ?? Photos by Max Whittaker / Special to The Chronicle ??
Photos by Max Whittaker / Special to The Chronicle
 ??  ?? Dene Bourne’s shortterm rental in Incline Village. Washoe County is on the verge of passing new rules to manage shortterm rentals in the Nevada town.
Dene Bourne’s shortterm rental in Incline Village. Washoe County is on the verge of passing new rules to manage shortterm rentals in the Nevada town.

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