Hello, we are looking to purchase a vacation home in Lake Tahoe with the possibility of renting it when we’re not using it. We’d like to stay around 500k for a min 3/2 turnkey. What areas around Tahoe would you recommend? We are open to both CA and NV sides.
Real Estate Agent · South Lake Tahoe, CA · Member since 2016 · 680 posts · 644 votes
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That criteria would be very hard to hit if not impossible in South Lake Tahoe. Turnkey, 3-2 and under 500k is a unicorn in the city areas that would allow vacation rentals. If you want something like that and are willing to do season leases, it’s much more doable. Season leases are generally 4-6 month leases either for the summer season or winter season. This can work out if you just want one of the seasons to yourself and you’re ok not having access during the other season.
There may be some options for vacation rental type properties in the county area of south shore. I would be aware though, the county is slowly going the same way as the city in regulating vacation rentals. So far, they haven’t gone as far as the city and they may not do the same exact restrictions but I’m sure they will be more restricted in one way or another in the near future.
Nevada side of the south shore is generally more expensive. I believe the vacation rental rules are much more lenient but a Turnkey 3/2 will probably be closer to $600k or more or it will come with an HOA fee.
I don’t deal with the north shore myself but my impression is that it will be even more expensive than south shore. You would have to speak with someone more familiar with that area about vacation rental rules.
Please let me know if I can give you any more information concerning the south shore area. I specialize in South Lake Tahoe in particular but could refer you to others for other areas around the lake.
@Carl N. Given the city's recent action to pause issuance of new STR permits for further consideration and the recently declared "housing emergency" it's a pretty risky time to buy into Tahoe Donner/Truckee.
That's not to mention that those low $1M houses were selling for $500k 18 months ago. Or that there are still lots of unrented airbnbs for peak weeks/months still for this winter, which points to a bit of an over-supply even in an extremely high demand compared to normal market. Unless you are in love with Truckee/Tahoe Donner specifically you can likely find better markets.