Henderson may become short-term rental capital of Southern Nevada

where the magic happens
(Photo: City of Henderson)

You can’t do it legally in Clark County, and you can only do it in the City of Las Vegas if the homeowner is present. But the City of Henderson, which prides itself as a “premier city,” may soon throw open the gates to licensed short-term vacation rentals without the restrictions imposed in Las Vegas. 

The city council is slated to vote Tuesday night on an ordinance that would allow rentals of up to 30 days in residential areas. Henderson currently allows vacation rentals only in the tourist corridor.  Homeowners would be required to pay an annual licensing fee to the city. 

To some, they are a pox on neighborhoods — a magnet for strangers, loud parties and fast cars. 

To others, they are a relatively simple means to augment income, or a wise investment in Southern Nevada real estate. 

Keith Lynam, president of the Nevada Association of Realtors (NAR), says the calls come every day from would-be investors. 

“Multiple calls,” Lynam says.  “‘Would this make a good vacation rental property?’ ‘Would this make a good vacation rental property?’ With everything that’s going on here, people want a piece of Las Vegas.” 

Short-term rental investments are gaining some of the investor interest once reserved for house-flipping. 

But given the almost impossible task of balancing the interests of property owners — some who want to rent out their homes and others who want a ban on vacation rentals — the NAR has stayed out of the fray. 

“It’s such a tough thing,” says Lynam.  “People are entitled to quiet enjoyment of their home. But you can use it within legal reasonable means.”

“At some point in time I think there is a conversation that needs to happen. If it’s going to be in the resort corridor, the tourist corridor. Wherever,” says Lyman.  “We have zoning for everything — why not for vacation rentals?” 

But the Greater Las Vegas Association of Realtors, an affiliate of the NAR, supports the proposed Henderson ordinance, according to a letter submitted to the city. 

The letter cites an economic study commissioned by the GLVAR and produced by RCG Economics. 

“…non-owner occupied STRs rent out at a far higher number than owner-occupied STRs regardless of the municipality throughout the State of Nevada and beyond,” Carpenter wrote to the city, in reference to the study. 

Carpenter says the GLVAR did not poll its members before endorsing the measure. 

“We have government affairs people who decide that,” she said. “I don’t think we ever voted as a board.” 

The GLVAR is suggesting the City of Henderson require that rental owners hire a property manager.

“The city of Las Vegas’ requirement that an owner be present was kind of an overreaction,” Carpenter told the Current.  “Our point was you need to have a point of contact. A licensed property manager would have been an answer.”

The proposed ordinance has no requirement for a property manager. 

STRs contribute to home appreciation, experts say. 

Affordable housing advocates worry that “Alternative Lodging” options are displacing long-term tenants, as landlords reap a year’s worth of rent in a fraction of the time on the short-term market — 83 days, according to one study by the Los Angeles Alliance for a New Economy. The study says the city was losing 11 rental units per day to short-term rental operations in 2015. It estimated that area rents increased by $464 million as a result of fewer units.

Carpenter declined to address the impact more STRs may have on home prices in Henderson neighborhoods. 

If the Henderson ordinance passes, tourists seeking accommodations in Southern Nevada will be subject to three different legal standards, depending on their location.

“We’ve tried to have input at other municipalities,” says Carpenter, adding only Henderson has solicited involvement from the Realtors.  “They (local governments) should probably be consistent, but getting them to work together doesn’t always work out.” 

Dana Gentry
Reporter | Dana Gentry is a native Las Vegan and award-winning investigative journalist. She is a graduate of Bishop Gorman High School and holds a Bachelor's degree in Communications from the University of Nevada, Las Vegas. Gentry began her career in broadcasting as an intern at Channel 8, KLAS-TV. She later became a reporter at Channel 8, working with Las Vegas TV news legends Bob Stoldal and the late Ned Day. Gentry left her reporting job in 1985 to focus on motherhood. She returned to TV news in 2001 to launch "Face to Face with Jon Ralston" and the weekly business programs In Business Las Vegas and Vegas Inc, which she co-anchored with Jeff Gillan. Dana is the mother of four adult children, three cats, three dogs and a cockatoo.

5 COMMENTS

  1. I wish Americans would start thinking about the people that live in their communities instead of only considering what’s best for investors.

    • Its not that black and white. One can argue its in the communities best interests as it will elevate property values and encourage continued growth in the real estate market.
      Im personally torn on the issue, my neighborhood would be quite desireable however I wouldnt want any of the potential negatives to occur. Considering how the Vegas areas largest industry is hotels/casinos though further complicates things. You could see it as a boon to casino business or a potential harm to hotel bookings.
      Theres a lot to consider, you should try not to jump straight to emotional conclusions and practice objective consideration of all aspects of a situation.

  2. This is ridiculous! Being able to turn a “family community” into short-term rentals is being inconsiderate to the owners of the homes in the communities. It brings “party” people to the community with no consideration to the folks living there full time. It brings down the property values of the other properties in the community. I would venture to say, who would want to buy a house to live in with their family when the prospective purchaser is advised there are “short term rentals” next door or across the street. Please think logically and side with the property owners who do NOT wand to live in a “short term” rental neighborhood. Let the renters rent close to the Strip where the others are located and NOT in our communities.

    • We had 2 neighborhood vacation rentals in our neighborhood where they allowed only families and no parties, weddings, or events. They vetted the guests also. No one under 25 years old could rent They gave us numbers to call with issues. In 9 years, we never had to call. They fixed up and keep these homes in impeccable condition, and our property values are almost double now, so selling means a BIG profit for all. You are ignorant thinking people rent only to “party”. That is like saying having anyone moves into our city who is not caucasian will cause problems. You are making an ASSUMPTION about people who want to visit OUR city. Frankly, it is people who think like YOU, I don’t want in our city.

  3. Is Henderson trying to become a good area for citizens to live or are we trying to become a tourist destination. I
    am so disappointed in this decision, we can now have people coming n going every weekend with no idea who is in your neighborhood. If anything this decision has me considering moving out of Henderson. Your residents that have lived in your community for over 30 years should have been considered first before trying to turn our community into a tourist destination. Keep the tourist on the strip where they came to party. After a night of Vegas partying you have now encouraged this to come into our neighborhoods. So I guess drunk driving n people coming in late shouldn’t matter to those who live here n have to get up for work in the morning. Thanks Henderson for caring about your community.

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