San Antonio is considering new regulations for short-term rentals (STRs). Unfortunately, some STR owners welcome the new regulations. For example, Jim Smith, who owns five STRs, supports the regulations because of financial concerns. He believes that those who aren’t paying the city’s hotel tax have an unfair advantage, and he wants that to change.
This pragmatism might benefit Smith in the short-term. He might get higher prices for his rentals, but he has abandoned the principles that would protect him in the long-term. Smith has abandoned the principles of property rights and is willing to cede control of his property to city officials.
Instead of demanding more freedom for himself (exemption from the hotel tax), he wants to put more shackles on his competitors. Rather than compete in a free market, he wants the city to “level the playing field” by placing more burdens on other STR owners.
When new regulations were first proposed, Smith was concerned that they might be draconian. He joined the task force studying the issue, and later decided to embrace the regulations. Apparently, he doesn’t mind the city telling him how to run his business, as long as the city doesn’t go “too far.”
The fact is, any regulation controlling STRs is going too far–it is a violation of the owner’s right to use and trade his property as he deems best.
Pragmatists like Smith pave the way for the city to enact increasingly restrictive regulations. Smith and his ilk can only complain when they believe that some future regulation is excessive. They certainly won’t be able to oppose it on principle, because they will have abandoned the principles of property rights long ago.