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Updated almost 11 years ago on . Most recent reply

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Sarvar Azamov
  • San Diego, CA
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Using property as short term stay (BnB)

Sarvar Azamov
  • San Diego, CA
Posted

2 years ago my partner decided to try one of our apartments as a short term stay also known as bed and breakfast. We took one of our models and listed it on BnB websites, once we started to get people, he decided to increase the number of units to 12, then to 30 now he is planning to have 70. Does any one know if it is OK to operate like a hotel in an apartment building and what might be a consiquencies? I know that BnBs are forbidden in NY. Don't want to have any problems because of my partners greediness.

Any recomendations will be appreciated.

Thanks

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Colleen F.
  • Investor
  • Narragansett, RI
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Colleen F.
  • Investor
  • Narragansett, RI
Replied

This violates a number of town and local ordinace depending on where you are. You need a short term lodging license.

I was involved in a ski club that purchased a house for member use and they spent thousands going to court over the fact that we were not hotel or lodging establishment even though people were charged by the night for use. It can get costly.

It also runs afoul of the neighbors who tend to make an issue over such things. and you may need to charge hotel tax in some areas.

In sum , check your local ordinances and see a lawyer. I would not do it if I did not know I had a legal right to do so. Even then my ski club experience taught me that you can be within the confines of regulations and it will still cost you to prove it.

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