{"id":165763,"date":"2024-01-31T14:22:33","date_gmt":"2024-01-31T21:22:33","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=165763"},"modified":"2024-07-25T17:34:23","modified_gmt":"2024-07-25T23:34:23","slug":"ways-to-navigate-short-term-rental-laws","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/ways-to-navigate-short-term-rental-laws","title":{"rendered":"Short-Term Rental Regulations Keep Getting Stricter\u2014Here Are Three Ways You Can Navigate Them This Year"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC2081408052\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Drawing from my background in regulatory compliance for global financial institutions, I have developed an appreciation for the intent of regulations that strive to safeguard public interests.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Regulations are not limited to finance\u2014as you may be aware,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.airbnb.com\/help\/article\/1376#section-heading-6\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">short-term rental (STR) laws<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;are a hot topic. As cities aim to refine&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/the-ultimate-guide-to-short-term-rental-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">STR<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;laws to suit their unique community needs, the landscape and laws continue to evolve.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">In this article, I will share my experiences and offer&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/mistakes-short-term-rental-investors-make-in-their-first-year\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">actionable advice<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;for navigating these changing regulatory environments.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Maintain Flexibility in Your Income Strategy<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">STR laws are not just set at the city level but also by homeowners associations (HOAs). This was a key lesson from my early foray into STRs.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">My first STR was in an&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/should-i-invest-in-an-hoa-neighborhood\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HOA community<\/span><\/a><span data-preserver-spaces=\"true\">. I was all set up and thriving\u2014and then the HOA unexpectedly updated their rules, prohibiting leases of less than 12 months. This led me to adapt quickly, transitioning my STR into a long-term rental that was still profitable.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This shift highlighted for me the critical need for flexibility in real estate strategies. When analyzing deals, it\u2019s important to consider properties that can adapt to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/convert-your-rental-into-an-airbnb\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">both STR and long-term rental models<\/span><\/a><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">While finding a property that can profitably function as both an STR and a long-term rental isn&#8217;t always feasible, it&#8217;s essential to assess your willingness to take on certain levels of risk. In my experience, I lean toward STRs located outside of HOA communities to avoid the risk associated with potential bylaw changes.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Educating Homeowners: The Key to Harmonious STR Hosting and Equitable Lawmaking<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Homeowners&#8217; concerns about STRs are not limited to immediate issues like noise and parking disturbances. There&#8217;s also a growing concern regarding the impact of STRs on the broader community, such as potentially increasing rental rates and reducing housing availability for locals.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">These concerns, whether widespread or localized, deserve serious attention and dialogue. Effective management of these issues requires STR hosts to engage proactively and thoughtfully with their communities. Open communication with neighbors is crucial, not just to address immediate nuisances but also to participate in discussions about the economic and social implications of STRs.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Working with homeowners and the community, STR hosts can help develop balanced and fair STR regulations.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Strategically Adapting Your STR Portfolio to New Laws<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Enforcement of STR laws has been known to vary significantly by city. This variability puts the onus on the STR owner to decide how you choose to operate with new information and regulations. Adhering to new laws as soon as they are enacted is often considered the safest, most responsible approach for any business to ensure compliance and minimize legal and financial risks.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">That being said, when faced with new laws, you have two primary options: adapt immediately to the changes or take a \u201cwait-and-see\u201d approach if you anticipate further amendments. One example of the latter is if new laws come out and you think your city will add a grandfather clause in the next iteration.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Deciding whether to comply immediately or to observe for potential evolution in the laws involves assessing both&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-are-investors-ignoring\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">risks<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;and potential benefits. Your decision should align with your risk tolerance, values, and the unique circumstances of your properties.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Successful STR management hinges on adaptability and informed decision-making. Staying current with evolving regulations and assessing how they impact your strategy is very important.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">By balancing compliance with strategic flexibility, STR owners can navigate the complexities of the market while&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/heyjasminebrown.com\/airbnb-host-tips\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">maintaining profitable<\/span><\/a><span data-preserver-spaces=\"true\">, responsible operations.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_19047250bf8aaae201b32954edded1e1\" class=\"visibility-group alignwide  hidden\">\n        \n\n<div id=\"hero-block_9b5c4cdda0f0f9b83c1dd287016ce792\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-slate-200-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\"gap-10 lg:gap-20 flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 lg:w-1\/2 \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-slate-800-color has-text-color has-large-font-size wp-block-paragraph\" style=\"font-style:normal;font-weight:800\">Find the Right Agent, Close the Best Deal<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color wp-block-paragraph\" style=\"font-size:18px\">Step #1: Use Agent Finder to match with top <em><strong>investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n<div id=button-custom-event-block_a8f8b98aceadc8083f2c7ed6c510edd7 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/agent\/match\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Agent Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/ways-to-navigate-short-term-rental-laws&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Find an Agent<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\"lg:w-1\/2 first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/08\/Marketplace-Blog-Blocks-Agent-v3.png\" alt=\"investor friendly real estate agent\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color wp-block-paragraph\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/ways-to-navigate-short-term-rental-laws&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>After New York&#8217;s crackdowns on short-term rentals last year and several markets outright banning them, navigating the complex legal landscape of these properties has gotten harder. Luckily, we&#8217;ve identified three good ways you can stay in compliance and still earn a profit.<\/p>\n","protected":false},"author":613719,"featured_media":165765,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[7271,7119],"tags":[],"class_list":["post-165763","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-short-term-rentals","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/165763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613719"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=165763"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/165763\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/165765"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=165763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=165763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=165763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}