Location landmines .... know your local vacation rental laws !

Congratulations ! You have spent months researching popular tourist destinations to invest in a vacation rental property. You have spent hours on AirDNA, all the major rental websites, and Century21 and have scoured the country to find the right property at the right price with the right earning potential in the right location. You are ready for go time. Good for you.

Now you're ready to cash in and start your self managed vacation rental operation. But wait ... what's this ? Rules ?, Restrictions, ? Anti rental laws ? Prohibited areas ? What's going on ! Better check your local government's short term rental laws. You may be quite surprised at how restrictive they are. The reality is that there are numerous municipalities that really don't want short term vacation rentals operating in their limits. This is due to lots of factors ranging from pressure from the local hotel industry to bad experiences caused by irresponsible owner hosts. As a result, more and more local governments are enacting laws controlling owner managed vacation rentals. This is especially true in large urban areas. Consider some of these various requirements:

-Palm Springs ...... You may not allow more than 4 guests in a 2 bedroom house;

You may only rent out your property a total of 36 stays per year;

-Santa Monica ..... Nope, short term vacation rentals are forbidden

-Miami ...... owners must research every guest and verify they are not on a sexual predator registry list; if owners are found to be operating in forbidden neighborhoods, first time offenses can total $20,000

-New Orleans ..... you may only rent your home out a maximum of 90 days per year

-San Luis Obispo ...... your property must be at least 200 feet from the closest property also offering short term rentals

There are many locations that are very short term rental friendly. In some locations the only requirements are that a modest rental license be obtained, taxes collected, and fire fire codes obeyed. Whenever possible, these should be where to choose vacation rental investment.

Operating in traditional residential neighborhoods can be precarious as residents can band together quite effectively and quash the incursion of investors trying to operate short term rentals. It is always better to seek out established tourist destinations, in neighborhoods that are already established as rental centers

Don't be caught in the short term rental trap ! Do lots of homework prior to acquiring your investment property.

Happy Hosting !

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