STR and Airbnb

[Chris Schneider]

Hey All!

I currently worked with a client who wanted to buy a STR but every municipality I called told me they're illegal. I still saw a ton of STR on Airbnb regardless.

Can people still get away with buying STR even if they are illegal?

[Jesse Turner]

@Chris, I presume you are talking specifically about Long Island? What ZIP codes or sub-markets are you most interested in? I can cross-check some listings for you.

[John Underwood]

I wouldn't go into something already knowing it was illegal, you are just asking for trouble.

Just because other people are getting away with it currently doesn't mean they won't get shut down in the near future. They could also be fined.

[Max Ferguson]

Yeah probably not a good idea to advise or try to procure a situation getting your client into an illegal business operation, especially on a public forum. Unless I'm misunderstanding. 

I would go on to facebook and find STR groups for your location(s) in question and see if there is a way to get a license already held by someone else, or if they are just completely off limits. There could also be other workarounds or maybe a medium term rental would provide the numbers your client needs to make the investment viable. Good luck!

[Collin H.]

Quote from @Chris Schneider:

Hey All!

I currently worked with a client who wanted to buy a STR but every municipality I called told me they're illegal. I still saw a ton of STR on Airbnb regardless.

Can people still get away with buying STR even if they are illegal?

 O.J. got away with murder, so why not?

[Alice Horn]

Quote from @Chris Schneider:

Hey All!

I currently worked with a client who wanted to buy a STR but every municipality I called told me they're illegal. I still saw a ton of STR on Airbnb regardless.

Can people still get away with buying STR even if they are illegal?

@Chris Schneider the actual enforcement will vary depending on the area. For instance in NYC, the city is now enforcing a complete ban as of 2023. Not a risk worth taking, in my opinion.

Here in the Kissimmee/Disney area, you never have to worry about the legality of STRs. We have tons to choose from in completely legal, purpose-built STR communities like Championsgate or Storey Lake. Might be worth taking a look if you are flexible on the area.

[Michael Baum]

I think everyone said it well @Chris Schneider. Just because there are listings doesn't mean it is legal.

I am betting those folks will be facing some big fines when the hammer eventually comes down.

[Brooklyn McCarty]

I would not want to buy something that was illegal or have a agent sell me something when they knowingly know that I am not going to be able to STR it.

There are tons of markets out there that allow STR, help them pivot to one that they can. 

[Jeremy Jareckyj]

Quote from @Chris Schneider:

Hey All!

I currently worked with a client who wanted to buy a STR but every municipality I called told me they're illegal. I still saw a ton of STR on Airbnb regardless.

Can people still get away with buying STR even if they are illegal?

I would make sure you are very clear with your client what the rules are in the areas they are planning on purchasing an STR.

[Chris Schneider]

Thanks, everyone,

I definitely did not plan on doing anything. I just found it interesting how people still do it despite the laws. Thanks for the help.

[Sarah Kensinger]

Quote from @Chris Schneider:

Thanks, everyone,

I definitely did not plan on doing anything. I just found it interesting how people still do it despite the laws. Thanks for the help.

I also figured you were wondering how this happened, not looking for ways to work around it. 

Many times, people just set the property up and list it online...some even avoid Airbnb if they know the city/county is watching the platform...and then quietly run a STR in a very illegal area. I know some hosts even ask their guests to please not mention to the neighbors it's a STR. Pretty much like everything else, people find ways to work around the rules.

[Bruce Woodruff]

Quote from @Chris Schneider:

I just found it interesting how people still do it despite the laws. 

yeah, guns are illegal in Chicago, Lol........