How to Get Around Those Pesky Short-Term Rental Restrictions!
As a full-time mom, pharmacist, and wife of 18 years, I know what it's like to burn the candle at both ends! Between hectic shifts in healthcare, driving the kids around, and spending time with family you barely have time for yourself! In today's economy, many of us are working even longer hours and tougher shifts with less to show for it.
Fortunately, luxury short-term rentals are a great way for property owners to make consistent, robust, and (mostly) hassle-free income. Whether through vacation rentals, short-term properties for business trips, or any other short-duration rental properties, your short-term rental success is right around the corner.
Taking the Trouble Out of Owning Short-Term Rentals!
My signature program, The Luxury Short-Term Rental Academy gives you all the tools you need to get out there and get it done! If you have some expendable income, you owe it to yourself to look into short-term rental investment today.
First, however, you need to know the local laws, short-term rental regulations, and legal restrictions that apply to you.
Sounds like another headache? Well, it doesn't have to be.
Here you can learn how to work your way through an effective rental agreement, avoid common pitfalls, and make the most of the vacation rental industry.
First, a Quick Run-Down on Short-Term Rentals for Property Owners
When I initially got involved in short-term real estate, I didn’t realize how much upside there could be.
A tiny profit turned into a consistent cash flow, and then before I knew it, hundreds of thousands of dollars in income were ripe for the taking.
Turns out, succeeding in the short-term rental market doesn't have to be crazy difficult. With short-term rentals, property owners everywhere can rent out well-furnished dwellings, often an entire property, for a specific rental period.
The Right Property Owner for the Right Short-Term Renter
I take luxury rentals seriously, as should you. Remember, at the end of the day, a short-term rental is your baby. Protect your investment, take care of your short-term or vacation rental, and never undervalue its worth!
Choose who you rent to carefully. Short-term renters may include corporate travelers, vacationing families, tourists, or any other person or group in need of shelter for a short period. As with any rental contract, there are state and local short-term rental laws that apply.
In some cases, you may even need a short-term rental license. Depending on the area, local government, property owner, property renters, and short-term or vacation rental market, all these factors can change. This is why you should always consult a top rental expert who understands short-term rental regulations and restrictions.
Why Short-Term Rentals Can Be VERY Profitable (When You Avoid Legal Issues)
Nothing like putting your sore feet up and relaxing worry-free as the money pours in! With short-term rentals, bad tenants are never around for long, and the cash comes upfront. Talk about a 'supplemental income'...
Especially luxury ones.
Just remember, all investment properties - whether shorter term or long-term rentals - come with a list of to-dos and to-don'ts. If there's one thing I've learned about luxury short-term rentals, it's that the devil is in the details.
Know Your Local Government and Local Legal Restrictions
Many cities allow you to put your investment property online, netting most property owners about $1,000 per month in passive income. Of course, what good is 1k a month when it could be 100k?
Sounds too good to be true? Not at all.
Every Property Rented is Your Next Step Toward Economic Freedom!
Your investment property income all depends on certain rules, regulations, and laws. While some cities are goldmines for rental income, other cities, municipalities, and 'zones' may have tough rules that restrict short-term rentals or even ban short-term rentals.
Many zoning law challenges can lead to many legal challenges (which is no fun), so it's always a good idea to consult an expert.
This is where a deep understanding of short-term rental regulations can mean the big difference between a hefty fine and sky-high ROI. Knowing expenses typically associated with a short-term rental is important to this end.
Typical Short-Term Rental Expenses You Need to Know
Depending on your budget and level of involvement, you may elect to hire a property manager or multiple property managers for your short-term and vacation rentals. Or you might take on all the responsibilities yourself. So, whether you roll up your sleeves and work some elbow grease or sit back with your hands clean, your costs and expenses can vary widely.
Typical rental expenses include mortgage, maintenance and upkeep costs, amenities and special features for guests, and cleanup expenses between rental periods.
Once you've got these basic expenses calculated, it's time to dig into the details. This includes the various short-term rental restrictions you will face - and the price of doing business.
So, before we learn how to get around short-term rental restrictions, we need to learn what rental restrictions we're working around to begin with!
The Biggest Restrictions on Short-Term Rental Owners
Property and zoning laws can get pretty burdensome, especially if you don't do your homework. Occasionally, you may get lucky and find an area where it's easy to set up a vacation rental. Other times, the local hotel industry or local residents may make you jump through hula hoops.
Nothing spells investment buzzkill like overbearing Homeowners Association (HOA) rules! If you've ever been told you can't paint your house the perfect shade you love, you probably have an idea of how arbitrary HOA short-term rental restrictions can feel.
Kiss Strict Rules Goodbye and Discover the Best Cities for Short-Term Rentals
You deserve the best investment property your money can buy. Generally, most cities will allow you to make an income from short-term rentals. You'll just have to obtain a short-term rental license or general business license before renting out your investment properties.
The typical application will have you certify that the rental property adheres to all health and safety regulations, follows code, obeys zoning laws, and isn't a secret to any attached properties.
From sunny San Francisco to the bustling Big Apple, local governments and agencies can help you start the process of registering your residential property. But if you really want to know the best cities for short-term rentals, I've done all the work for you!
Fees, Taxes & Timeframes on Short-Term Rentals
In registering your residential property, you'll have to worry about rental fees, and different kinds of short-term rental tax, such as property taxes and occupancy taxes. After all, the government just loves to collect taxes.
You'll also have to consider insurance.
Not all Residential Neighborhoods Love Short-Term Rentals...
Some cities and areas allow temporary housing to be short-term rentals whereas other areas require that you make the rental a place for "permanent resident purposes" or be occupied for at least 30 days.
Unfortunately, the hotel industry has a stranglehold on certain zones. Unless a property is a licensed hotel or motel, 'guests' will have to stay for over 30 days. In some cities, short-term rental properties must be physically separated by at least a couple hundred feet.
Worried about any of this? Well don't sweat it, there are plenty of experts to help you ensure you can still invest in a short-term or vacation rental and make good money! If one city or municipality prohibits short-term rentals, I know the perfect alternative residential neighborhoods for you!
Make the Laws Work FOR You
Do you have a beautiful home-away-from-home that you'd like to monetize? How about a primary residence that you won't be occupying for a while? Are you simply in the market for finding new luxury properties worth your investment that can churn out a profitable, dependable income stream?
As hard-working professionals, we deserve a break! If you want to catch up on some sleep and enjoy that financial freedom you've desperately wanted, it's time to learn the laws of short-term rentals.
Think of short-term rental regulations as a way to level the playing field. Everybody has to abide by them, and some people just know how to play the game better than most. Fortunately, learning these laws, rules, and regulations doesn't require a Doctorate -but if you have one, all the better!
Find EVERYTHING You Need to Know About Short-Term Rental Restrictions
First thing first. Look up your local government and get into the dirty details. You should be able to quickly locate your local municipal code or administrative code. If you'd like to talk to an actual human (who doesn't?), feel free to call your local housing authority about rental restrictions.
The Short-Term Rental Advocacy Center (STRAC) is also a great resource that can help you engage with policymakers, learn about important regulations, and keep up with the industry.
The STRAC is a Tremendous Resource for Rental Property Investors
If your municipality has a proposed amendment or is working through the amendment process on short-term rentals, the STRAC will know about it.
More importantly, if the local court concluded something about rental property in your area, you can learn about it from the STRAC. You can also hear it from a top-tier investment expert with years of experience and success.
I'm always happy to educate new investors!
So... let's discuss the ways to work around any obstacles you may encounter as you dive deeper into your local laws, rules, and regulations.
Get Around USA Short Term Rental Restrictions Like Magic!
In some places, you can rent out a luxury property for a month or even three months. Other areas, not so terrific. If you have a good understanding of the laws and want to kick back, sit pretty, and make some serious money, there are several things you must do.
These steps will allow you to avoid common pitfalls and problems that may arise with local governments.
Establish a Business Title/Name
You want to structure yourself as a business right away. So, the first thing you need to do is get an official business name. Make this your top priority. Legally, there is a world of difference between an individual and a business. Under a business name, you can acquire rental properties and then lease them. You can also list these properties legally on websites like Airbnb.
Establish a Legal Company or Corporation
With the name taken care of, you now want to get the appropriate licenses. There are all kinds of business structures you can take. The common ones are LLC, S-Corp, and C-Corp. Check with your local governments to determine the proper structure for an authentic business in your area.
A legitimate company will also require that you obtain an Employer Identification Number (EIN). Once you have this, you can purchase properties and rent them out under your business. This helps you work around those bothersome property laws and will give you an advantage over other investors.
Just be sure to let local authorities know who is occupying the property.
Behave Like a Business Because You ARE a Business!
Since you are now legally a business, you need to behave that way. A lot of life is about how we present ourselves, the words we use, and the impressions we give. Renting out investment properties is no different. Try to avoid words like 'rent' or 'tenants' or 'guests.'
These words can be misleading or cheapen the value.
Talk the Talk, Walk the Walk
Instead, refer to people occupying your property as clients. After all, the property is under your business name, so those using the property are technically clients.
Also, it's a good idea to not refer to your property as a rental. You don't even need to disclose to most websites that you purchased the property and own it. As long as you are legally able to have occupants, you're good to go!
If you have a property manager or landlord it's best to keep your lips tight. Don't disclose too much, speak concisely, and think like a company. If you have any questions or concerns at all, it's always a good idea to consult top, high-ROI rental experts in your area.
Turn Your Short-Term Gems into Long-Term Wealth
The beauty of short-term rental properties is that they can take almost any form, so long as you're in the right market following the right rules, regulations, and laws. With a good understanding, a little hard work to get going, and some money behind us, we can all turn luxury rentals into lasting, big-time income!
Let's face it. Most of us work too hard. We may be addicted to 'the hustle' but is the hustle paying as it should? Healthcare workers drain themselves with 14-hour shifts, take on huge debt, and often struggle to make it all work.
Fortunately, with just one smart investment, we can begin to leave this exhausting, same-old-same-old lifestyle in the rearview.
Learn how to unlock new income and full-time freedom in just 12 weeks. Change your life for the better and never look back. My Signature Courses and Free Training will help you build the LUCRATIVE CASH-FLOW and RENTAL PORTFOLIO you deserve.