MTR #3 Navigate the Elephant in the Room & Protect Your STR Investment

The elephant in the room is the ever evolving short-term rental regulations.   Cities and towns are implementing these regulations to address housing and affordability, public safety, and residents' quality of life.  Although some of this is true, the hotel lobbyists also have a major influence on these regulations. 

Mid-term rentals are an amazing solution to some of these regulatory constraints.  They are not as regulated as short-term rentals as they are considered long-term rentals. 

Here's the process I use to find the regulations in my markets:

To understand the regulations, you should start by:

1. Checking the HOA restrictions, as HOA covenants, conditions, and restrictions often take precedence over other regulations. 

2. Next, you should do a google search for the short-term rental ordinance, municipality code or 'municode' of the city/town you are interested in. 

3. If you need clarification or cannot find anything, call the county clerk's office and ask about the short-term rental ordinance or regulation and any regulations that are in draft.

4. You should also call the zoning department for further clarification and make sure to have a written record of any information you receive. 

5. Additionally, check for any newspaper articles about short-term rentals in the area, as board members and elected officials may be talking about it.

In summary, understanding short-term rental regulations can be a challenge, but it is crucial to comply with the rules to avoid financial losses from penalties and bans. Keeping a record of all the information gathered through phone calls, either by requesting an email summary or sending one yourself, can help you stay informed and make informed decisions before investing in a property. By doing so, you can avoid spending money on a property that would not pencil out if you had to pivot from short term rentals.

Do you have a plan for repositioning your STR if you needed to?  Share your thoughts in the comments section.