Marc Terry

Good morning, My name is Marc Terry. I write in opposition to the several bills being considered relating to the regulation/taxation of short-term rentals. I, along with my wife and two other family members, purchased a single-family home in Gilford in May of 2024. We purchased the home as a step toward having a true second home in the Lakes Region to enjoy ourselves. We rent it as a short-term rental (STR) to help offset the cost. It is the only STR we own. It is the only STR we intend to own. We oppose the several bills being considered - all of which would certainly raise the cost of ownership - and which we believe would have multiple negative impacts. First, as a practical matter, operating a STR has proven to be less profitable than we expected. With an STR that has rented beyond expectations in terms of volume, we will almost certainly operate at a loss. This is simply because of expenses, including existing fees to AirBNB/VRBO, the cost of a professional property manager and the cost of operating a home. Increasing taxes only increases our costs. Second, although we appreciate the need for additional revenue to the state, we believe these bills would not have the desired result. If our costs increase, we may need to sell our property. We suspect other individual owners may feel the same way. This would result in a glut of houses coming on the market for sale, a drop in real estate value and, with it, a drop in actual revenues. Third, if STR's become less attractive to operate and individuals pull out of that model, the net result is fewer locations for tourists to stay and less business into the area through overnight stays. Again, less revenue for the state (we already pay the state hotel tax). With less competition, this will also like allow true hotels to charge higher rates, which makes the cost of staying in the area prohibitive. Again, fewer tourists and less revenue. Last, we can appreciate that there are major corporations that buy homes to operate as business only. We are not that and never will be. If the legislature feels the need to address STRs as a policy issue or simply sees an opportunity for increased revenue, we strongly encourage it to consider an option that exempts individuals who own one or a small number of homes and addresses only the corporate take-over of communities for profit-making purposes. Quite frankly, we see these bills as supporting that practice as they are better able to pass on costs to renter and balance risk across states. Thank you for your consideration of these points.