Las Vegas Real Estate for vacation rentals and self commuting?

Question

My girlfriend works in the event business she's able to work once a week from Las Vegas every or every other month as a contractor.

I work remotely full time.

We were thinking about hotels but I realize homes are very, very cheap (I was seeing apartments with or without HOA fees between $700-$1000).

We now think it might be better to purchase a home close to the university or the Strip. Airbnb or vacation rental the days we are not in Vegas.

Has anyone done anything like this?

I know people panic about downturns in Vegas and etc.

But my backup plan was just to rent to college students when the future outlook doesn't look great.

Or just pay it off during the down months since the cost is equivalent to a car lease for us (we don't lease a car but the monthly mortgage payments are about the same if we did lease a car).

Obviously this would be after the pandemic.

Casey Powers · Answer

@Stephan Kraus sweetums - I have done Airbnb in Las Vegas. It’s not “what I’ve heard”, thanks. And I’m not the slightest bit interested in managing any monthly or corporate style rentals. Or painting houses. Way to make silly assumptions. Lol

STR is very much illegal in unincorporated Clark County, which just happens to cover the areas where most people want to do Airbnb (around the Strip etc). Many if not most HOAs don’t allow it either, and will absolutely shut it down when they catch it. I also know people who got shut down for doing it in areas where it isn’t allowed. Yes, they absolutely do shut people down. There are people who even look for it to tattle on illegal operators.

Also, Airbnbing a “second home” doesn’t exactly meet the criteria for doing it without a license from your “primary residence”.

Stephan Kraus · Answer

None of the answers so far seem to actually come from people who have done / are doing airbnb / STR in Las vegas. All answers sound like echoed half-truths of what people "have heard" about "how Airbnb's work in Las Vegas". Of course a Property Manager will tell you to do "monthly". Ask a painter if you should have your house painted ;-)

The reality is: There are a few ways to do it, and it can be pretty lucrative, and especially the way you proposed it (owner Occupied home, certain time a year rented) hasslefree doable. Legal, ethical, and without negativly affecting house prices. You are even doing your local economy a service.

And even for non owner occupied properties, there are options again now, Henderson just passed a new ordinance in October, and Both North Las Vegas and City of LV, as well as the county want to draft new ordinances, after the previous policys obviously did not work. (1XX permits issued, 8XXX actual listed properties)

Do your homework on the legislature depending on what part of town you are planning to buy, and most importantly DON'T rely on STR rental as the only exit strategy. Make sure the numbers at least break even if you had to rent it out conventionally. You dont even have to resort to a year lease, i currently have a 4 month travel nurse client for 2740 in a home that otherwise would rent for 1250-1400. (But i'd still cashflow on that one if i would only got 1000 for it tomorrow)

My Airbnb's had two record months back to back, after a ton of covid related cancellations in march. Mostly locals, looking to get out of their homes for a day or two. But if it didnt, i would change my marketing / tenant search accordingly.

I think in your position its a great way of "house hacking". You dont need a license for that and can just start (unless there's an HOA that permits this form of renting out) you wont get insane fines, you are unlickely to get shut down unless there are major complaints for noise or similar. If you do change the way you host to a more commercial angle eventually, yes the city might come after you, and demand you get licensed. (which in LV currently is a PitA to be honest) But you wont get fined at all, let alone "insane fees" (unless you ignore the city's notices)

Feel free to reach out if you have any questions & good luck! 🤙🏼

Casey Powers · Answer

This is absolutely not the time to start trying to do Airbnb in Las Vegas. Not now, and not later. Anywhere you *want* to do it, is 100% illegal and WHEN you get caught, they will make sure you are shut down. I know some folks who got shut down - the local authorities don’t play. Also many locals do not take kindly to illegal Airbnbers because it directly contributes to the housing shortage and jacking up housing costs for people who live and work here. Some will tattle on you to get you shut down. Better to get a different plan. Monthly might be better.

Michael Tully · Answer

@Kyle Calica Las Vegas local here - I think as long as you're prepared to have months with ZERO occupancy then go for it! As previously mentioned, AirBNB can be tricky in Las Vegas. AirBNBs are actually illegal unless they are in Las Vegas, North Las Vegas, or Henderson. Most of what you think of as "Las Vegas" (including the strip and areas around the University) are actually unincorporated Clark County and do not allow AirBNBs. However, many people still have them and every once in a while the county sends out fines and notices to stop. The fines can be HUGE and ultimately are not worth the hassle. Look up the city limits on a map and you'll see the areas you can AirBNB out of.

AirBNBs in las Vegas don't have a high occupancy percentage (aside from niche executive rentals/party houses) and with the city needing tourists more than ever, I wouldn't be surprised to see hotels giving great deals on rooms. A few in town already are advertising ZERO Resort Fees and Free Parking to attract visitors. That will be your competition.

I think a better route would be to buy something near the university and rent out rooms to college students. Long term rentals in Vegas (30+ day stays) are much easier to do than STR.

Marty True · Answer

AirBnB is restricted pretty much all over Las Vegas. What might be a better/safer bet, would be to do 30 day corporate rentals for digital nomads and corp travelers unless of course, you aren't able to block off entire months to rent out while you're not here. Just be very careful if you go down a "daily" or "weekly" route on AirBnB and do lots of research on restrictions/fines.