Short Term Vacation Rental Investing: Regulations

[Devin Fakner]

Good Day BP Community!

I am looking to invest in my first - hopefully of many - Short Term Vacation Rental along the east coast (North Carolina, South Carolina, Georgia, and Florida).

I've found through research that STR Regulations are inevitable due to pressure applied from large hotel corporations. Does anyone have any insight as to how this might affect - or has affected - the STR business in the states listed above?

Has anyone felt the effects of regulations in those states?

[Troy Gandee]

@Devin Fakner Be very careful in SC. Most of the major metros have regulated quite heavily. The ones that have not are in the process. If you're in a smaller town or more rural area, you'll probably be ok for a while, but it seems most of these regulations are geared towards weeding out the out of state investors in preference or resident owners. I don't blame them. Hospitality is a huge industry in SC, so if they're going to allow STRs, they may as well make sure they benefit the resident and state taxpayers more than out of state owners. Because Charleston is a vacation and wedding destination, we've seen a lot of properties turned into party houses, which the neighbors hate. Some of the regulations hope to create better management by making the owners be present during the rental periods (I.e.multifamily, cottage house, guest house, MIL suite, etc).