In this episode of The Vacation Rental Show: How We Grow, host Lynell Gordon is joined by Ginger Harrelson, co-owner and Corporate Counsel of Beachball Properties, and Scott Leggat, Director of Government Affairs and Advocacy at Inhabit IQ. 

Ginger Harrelson is co-owner and Corporate Counsel of Beachball Properties, a family-owned and operated vacation rental agency servicing the Alabama Gulf Coast. Prior to this, she was an Attorney at Starnes Davis Florie LLP. Ginger is Vice President of the Pleasure Island Junior Women’s Club whose philanthropic mission is to clothe local children in need. She also serves on the Dean’s Leadership Board for the University of Alabama College of Arts and Sciences where she sits on the Junior Scholarship Committee. 

Scott Leggat is Director of Government Affairs and Advocacy at Inhabit IQ, a global PropTech software company serving the residential and vacation property management industries. Before this, he was CEO of Seaside Vacations, who offer accommodations on the Outer Banks of North Carolina. 

This episode is sponsored by Streamline.

[02:43] ​​Merchant of Record Legislation - Scott says that Ginger’s groundbreaking work on the Alabama Tourism Protection Act highlights the critical role of property managers being designated as the merchant of record. The legislation ensures that professionally licensed property managers retain control over financial transactions, holding funds in escrow in accordance with state law. This protects vacation rental managers from undue influence by third-party platforms like Airbnb and Vrbo. This law, passed without objection, has empowered property managers to uphold fiduciary responsibilities while maintaining legal compliance and protecting homeowner interests. 

[10:59] OTAs Impact on Revenue and Client Relationships - Online Travel Agencies (OTAs) like Airbnb and Vrbo have altered the vacation rental landscape by asserting control over guest transactions and treating property managers as secondary. This shift has hindered property managers’ ability to cultivate relationships with guests and capitalize on ancillary revenue streams like insurance and security deposits. Scott highlights the importance of retaining direct communication with guests, as it not only enhances client service but is also essential for rebooking and long-term profitability. OTAs’ practices jeopardize these revenue opportunities, particularly in states like North Carolina, where stringent trust accounting laws already protect the vacation rental industry.

[13:49] Advocating for Local Political Involvement - Ginger provides strategic advice for property managers and businesses aiming to influence legislation in their regions. She advocates for active participation in local politics by attending city council meetings and building strong relationships with mayors and council members. Ginger explains that such involvement not only facilitates connections with key decision-makers but also helps create a unified community effort to support beneficial laws. She emphasizes that the impact of these legislative actions extends beyond individual businesses, positively affecting local banks and the broader community by ensuring stable and profitable operations within the tourism industry.

[16:12] Ensuring OTA Compliance with Merchant of Record Law - Ginger emphasizes the importance of enforcing the Alabama Tourism Protection Act, which designates professional property managers as the merchant of record for transactions. She details the ongoing efforts to ensure that major OTAs like Airbnb comply with the new legislation effective October 1st. Ginger highlights the challenges faced in obtaining clear guidance from Airbnb’s legal department and underscores the necessity of holding OTAs accountable to Alabama law. She asserts that non-compliance by OTAs will necessitate further legal actions to uphold the integrity of the law and protect the interests of property managers and homeowners.

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