204: Rookie Reply: Do New Short-Term Rental Regulations Make Investing Risky?
New short-term rental regulations are sprouting up around densely-populated states like California and New York. These regulations can stop new investors from setting up shop while making established hosts much wealthier. With stricter short-term rental laws, what should real estate investors do to hedge their risk against being stuck with a property that can’t be rented out?
Both Ashley and Tony own short-term rentals. Ashley’s is situated in a town with no regulations, while Tony has vacation rentals scattered across multiple markets, each with its own specific ordinances. Tony knows that even with these new laws, there are still steps you can take to ensure that your short-term rental investment isn’t ever at risk of being left empty.
Looking into short-term rental markets? Here are some suggestions:
Look for established, mature vacation rental markets when starting your search
Economic dependency on tourism will most likely make an area more open to short-term rentals
Always research the number of short-term rentals an owner can legally own in an area as well as how the permitting process works
Stay up-to-date on an area’s short-term rental laws as they are subject to change
And more in the episode…
If you want Ashley and Tony to answer a real estate question, you can post in the Real Estate Rookie Facebook Group! Or, call us at the Rookie Request Line (1-888-5-ROOKIE).
Links from the Show
Check the full show notes here: https://www.biggerpockets.com/blog/rookie-204
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