Limits on number nights primary residence rented short term?

Question

I've been doing research on this but haven't found a clear answer yet that clarifies it for me. Basically, I am looking different options for doing a short term rental in an area that I think is ideal for this business climate (away from urban centers in more outdoors vacation type of area) and I'm thinking of possibly buying a primary residence for this and renting it out some of the time when I'm away.

Let's say I would be living there at least half the year, would the only determining factor on how many nights I can rent out the property as a short term rental be the local regulations on short term rentals? I wasn't sure, though, if the lender would place restrictions on this or possibly some other kind of government restriction related to the fact that I have it as my primary residence (probably more federal in my case as I don't think the states I'm looking at would)? In my case I am looking at areas that I believe have few restrictions in terms of limiting short term rentals overall. I think I could get an insurance policy tailored for a short term rental even if the house was my primary residence without issue?

Also, I'm not sure if I would need to tell the lender going in about my plan, I want to do this by the book and not have them think I'm going to be living there 100% of the time if I would be going against their terms by renting it out part of the time. Thanks for any info!

Forrest Faulconer · Answer

Hi! I believe it is up to two weeks per year allowed as a rental. That may be just in my area, I just remember reading that at some point.

Forrest Faulconer

Angel Ginnett · Answer

I am not a lender but from what I understand, even a primary residence you can use as a short term rental part of the time.   I don't believe you need to disclose to a lender that you intend to rent out your primary residence for a portion of the year after purchasing it.

Ryan Riches · Answer

You will definitely want to talk with lenders about what requirements they have for claiming a property as your primary residence. One way you could go about this would be to find a place that has an ADU that you could rent out full time, or that could be the space that you live in while renting out the main house. I have stayed in several places like this in the mountains outside of Denver.

And like you already mentioned, make sure you know the local regulations. Some areas have a maximum number of nights you are able to rent your space out as an STR, other areas don't allow you to rent for under 30 days.

Limits on number nights primary residence rented short term?

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