Adirondack orgs launch program to transition STRs to long-term rentals

Short-term rental owners in Elizabethtown and Old Forge can apply for stipends to help make the switch

By Tim Rowland

For property owners who might be experiencing STR fatigue, a new program in two Adirondack communities will pay to help them to get out of the short-term rental business in order to rent to those with long-term housing needs.

Under the pilot program, up to 12 STR owners in the Elizabethtown and Old Forge communities would be eligible for up to a $2,000 stipend, as well as technical advice on transitioning their properties. The stipend is designed to help cover the gap in revenue during a short-term to long-term conversion under the program, or cover other associated costs such as storing STR furniture that long-term renters will not need.

The project, based on similar incentives offered in Colorado’s tony ski towns, was developed by nonprofits AdkAction, Adirondack Roots and LivingADK, with financial support of the Adirondack Foundation, Hudson Headwater’s Upstream Fund and a private donation.

For those  interested in learning more, the organizations are hosting an online information session on Wednesday, Oct. 30, at 5:30 p.m. Register here for access(https://us02web.zoom.us/meeting/register/tZIvf-qpqzsoHtSdqv9wxK4gl0ksKPf58msf#/registration).

“We’re excited to support this creative solution to a problem that has affected each of our communities,” said Lori Bellingham of Adirondack Foundation. “We know that our communities can’t grow without adequate housing for the people who work here now, and those who would move here as well. This is just one way we’re trying to narrow that housing gap.”

STRs have been blamed for contributing to a critical housing shortage in the Adirondacks as, particularly during COVID, property owners took advantage of strong demand for vacation rentals.

But there is some recent evidence that the STR market in the Adirondacks is softening, said AdkAction Executive Director Sawyer Bailey, as demand slips and the realities of STR ownership become more onerous.

“It’s a business and no business runs itself,” Bailey said. “It really can become a full time job.”

On top of that, occupancy and cancellation rates indicate the market is becoming saturated, which will eat into STR income, Bailey said.

Long-term rentals were already shrinking prior to COVID, according to figures provided by the nonprofits. During the decade from 2010 to 2020, the number of traditional rental units declined 12% in Essex County, from 4,342  to 3,819, while the rental market tightened as reflected in the vacancy rate, which decreased from 11.1% to 5.9%.

COVID amplified this effect to the point that — particularly in Hamilton County — vacation housing far outstripped traditional housing in many communities.

Megan Murphy, executive director of the housing nonprofit Adirondack Roots, said the market for long-term housing had become so tight that even those with government housing vouchers were unable to find apartments on which to use them.

Coincidentally, Murphy said, two of the soon-to-be homeowners of Adirondack Roots’ housing development in Keene formerly inhabited the same apartment building, until it was converted into an STR. One of the two, a school teacher, found a new apartment only to be booted out again when it too became an STR. 

Long-term rental properties are a key component of the housing food chain, critical for lower-income families, young people starting out, older people looking to downsize and new residents who have taken a local job and want temporary quarters while looking for more permanent housing.

Murphy said STRs fill a valuable role in the community, bringing outside dollars into the community and providing work for local residents. “We value our STR owners, but we have to balance it a little more,” she said. 

And while STRs typically generate more income than a long-term rental, the raw numbers are a bit deceiving. STR rentals are much more hands on, and need regular cleaning and landscaping, as well as expenditures on wifi, utilities, paper products and other supplies.

Murphy said there is also a social component, as “We’ve heard from people who want to contribute to the community.”

Photo at top: Approximately 30 people gathered last year at the home of Joelle Nesbitt in Westport for the rebranding of Housing Assistance Program of Essex County to Adirondack Roots. Nesbitt’s family home was saved with a rehab grant through the organization. Photo by Eric Teed for Adirondack Roots