Beware of Changing Local Laws with STRs!

[Ryan Enk]

One of my favorite real estate strategies for this year is Short Term Rentals.  The money is great and you get to provide amazing experiences to people.

However, local governments are starting to get their hands into it.  Our government here is looking to pass a ridiculous ordinance on short term rentals.  It basically says that anyone who has a short term rental, needs to live a few minutes away, has to pay $1000 annual permitting fee, get regular inspections, must do it in an area zoned commercial, and any short term rentals must be over 30 days.  In effect, it wipes out ALL short term rentals.

We have a group here locally that is fighting this ordinance.  I went to the planning and zoning meeting last night and breathed a little fire, but these sorts of things make acquiring short term rentals very risky.  I have one on the water that cost me about 700k.  I will be left holding the bag on it, or just trying to get a LARGER long term rental rent payment if this law is passed.  Thankfully, all my other STRs are lease situations.  STRs were such a gold rush when they first started, but government red tape and bureaucracy could be putting a wet cloth on it.

Does anyone here have experience fighting local governments on the constitutional right to use your property as an STR? And the unconstitutional ordinances being proposed?