“Want to ensure your home never becomes a short-term rental? Even after you sell?” asks a city flyer that Sedona residents began receiving with their sewer bills a couple of weeks ago. “Join our FREE deed restriction program. This program allows you to place a no short-term rental deed restriction on your home which carries over with the sale of the property!”
In a bold move, the picturesque city of Sedona has launched an innovative direct mailing campaign encouraging homeowners to consider a short-term rental deed restriction program. The campaign, initiated a few weeks ago, features a persuasive flyer with this catchy headline. The initiative is part of the city’s broader strategy to manage short-term rentals and maintain the residential character of the area.
The flyer directs residents to a city housing coordinator, Jeanne Frieder, for more information about the free deed restriction program. On the city’s website, limited details are provided, including the waiver of filing fees for these restrictions. Notably, the program proposes compensating homeowners with $15 for either a complete prohibition on short-term rental use or a restriction on part of a dwelling unit, emphasizing a commitment to preserving the residential fabric of the community.
Approved by the Sedona City Council in January, the deed restrictions come with a 49-year term that automatically renews with each property sale. Notably, the program includes financial penalties for violations, with property owners agreeing to pay $500 per day in case of a breach. Additionally, the deed restriction cannot be terminated without the city’s consent, ensuring a long-term commitment from participants.
While the city aims to address housing concerns, the Sedona Verde Valley Association of Realtors has raised apprehensions. The realtors express concern about the potential impact on property values, emphasizing the need for clear data to support the assumption that short-term rentals are the root cause of Sedona’s housing challenges.
Despite the initial concerns, the city is exploring alternative strategies. During budget discussions for fiscal year 2024, city staff proposed a $2 million allocation to purchase deed restrictions, mirroring successful models in other resort communities like Vail, Colorado. However, the city council opted against approving this proposal, prompting ongoing discussions about finding a balanced approach to address housing shortages while preserving property values.
As Sedona pioneers this unique initiative, its success remains uncertain. The community awaits the response from homeowners and potential shifts in the local real estate landscape as the city takes proactive steps to shape its housing future.
