New Program Pays Owners To Convert Short-Term Rentals to Long-Term Leases

Three Adirondack-based groups are offering owners of short-term rentals (STRs) a stipend to convert their properties to long-term rentals — a pilot program meant to help alleviate the region’s persistent housing shortage.

Adirondack Roots, AdkAction and LivingADK are leading the program, which is supported with $20,000 in grants from Adirondack Foundation and the Hudson Headwaters Upstream Fund as well as individual support. The groups will provide a stipend of up to $2,000 to 12 STR owners who switch to long-term leases for at least a year. At first, the program is open to STR owners in Elizabethtown and Webb/Inlet. Additional communities may be added to the program as funds permit.

To learn more, the organizations are hosting an online information session on Wednesday, October 30, at 5:30 p.m. Register here for access.

“The region’s housing shortage is well documented, but we can’t expect to solve it completely with new construction,” said Sawyer Bailey, executive director of AdkAction, based in Keeseville. “By tapping into existing housing stock, we’re addressing one of our biggest challenges in a timely, economical manner.”

Megan Murphy, executive director of Elizabethtown-based Adirondack Roots, said the pilot will test three strategies to catalyze the conversion of existing units into long-term rentals. “Along with providing small stipends, we’ve developed customized educational resources and are offering one-on-one support for landlords,” she said.

To qualify, applicants must convert units currently in use as short-term rentals; the units must also be legally permitted dwelling units. Preference will be given to landlords with rental units in Elizabethtown and surrounding towns such as Keene, Westport and Lewis, and Webb/Inlet and neighboring towns. In addition to the stipend, staff will be available to help property owners navigate the changeover process and provide other assistance as possible.

Property owners who convert their STRs to long-term rentals often discover many benefits. For one, long-term leases deliver a predictable source of monthly income, while STR revenue fluctuates from month to month. Many also discover that long-term leases cost less to operate than STRs, as renters pay for utilities and other expenses.

“We have heard from people who are surprised by the amount of time, effort and money it takes to operate a short-term rental,” said Steve Underhill, director of economic development for LivingADK of Old Forge. “From frequent cleaning to serving as a concierge, owners find that running an STR can be like running a small hotel.”

Long-term rental benefits, and more, are included in a tool kit the groups recently produced to help people through the process. That toolkit, as well as an application for the program, are available at adirondackroots.org/our-services/for-homeowners. Applications will be accepted until funding is expended.

“For some people, operating an STR works out well, but it’s not for everybody,” said Bailey. “Our goal in producing this tool kit was to help people understand the pros and cons of short-term and long-term renting. We’re looking for a good fit to make the switch — it’s good for them, and good for their communities, to boot.”

The stipend is meant to defray some of the costs property owners may face when converting a unit to long-term renting, including legal fees and furniture storage.

“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.”