I think the community wouldn't suffer due to short term rentals.

We do provide steady, year round work as we do get a lot of rentals, which is key to keeping housekeepers happy, and we offer extra work to them, their husbands, etc when it is available - such as planting, plowing, mowing, spring yard clean up, errands, we buy eggs for our guests from one of our housekeepers, that kind of thing. 

Such conversion need not comply with the requirements of the following specific provisions of this chapter:  (a) Section 13-196-660 (height limits); however, in frame buildings, four or more levels of living space shall be prohibited and in buildings of ordinary construction, with or without attic living space, five or more levels shall be prohibited;  (b) Section 13-196-050; however, all dwelling units must comply with the exit provisions of Chapter 13-160 except basement dwelling units may have a second exit through a room containing a heating plant;  (c) Section 13-196-670 (stairwell enclosures);  (d) Section 13-196-680 (corridor enclosures);  (e) Section 13-196-690 (dwelling separations);  (f) Section 13-196-710 (basement ceiling construction); however, if the basement contains a dwelling unit the entire basement ceiling construction is to be wood lath and plaster of half hour construction;  (h) Section 13-196-720 (heating plants); however, basement apartments are to be separated from heating plants with partitions of one hour construction.

If you can't and the lender suffers a loss (or even worse FHA or Fannie etc does) then you are looking at fines and or prison time.

Two of General Motors newest car assembly plants reside here, along with countless other suppliers.

If you suffer from allergies though I've heard it can be brutal there bc it's so greenWhat about Philadelphia?

It sounds like you're saying that the tenant can walk away from a lease and be made whole (having the money returned) while the owner suffers a loss. 

Allowing it to operate in 'island mode' in the event of power outages can really be amazing- your residents could have a place to charge phones/computers etc. in the event of an extended outage.And if you have enough acreage, why not plant a few apple trees or other fruit trees that will flourish in your specific climate(Cleveland?)

Local economic conditions, plant closing or were the homes sold overvalued and now underwater?

But after Ike, there isn't much left for old beach houses.Interesting, in Surfside we are getting a huge influx of contractors for the local chemical plant and it has many houses rented year round.