Investor · Fort Lauderdale · Member since 2014 · 51 posts · 15 votes
Any tips of buildings in Downtown Los Angeles that allow vacation rentals?
I had a great experience running an vacation rental condo in Santa Monica, Ca but unfortunately the HOA asked me to stop. Looking for other places in Southern California do to do the same, there seems to be a lot of demand for it in Downtown and a lot of people are doing it, but l know some are doing it under the table. I want to do it right from the beginning.
@Ariel G. First off, welcome to Biggerpockets, there's investors on here in every niche, including vacation rentals. Have you considered other areas of southern California, such as Orange County in the coastal areas? I know many of the cities are very friendly to vacation rentals. In fact,
I know I've had a few people contact me on some of the properties we are developing, considering them for such use. I can't say I've ever read any posts from VR owners in Los Angeles, but you might try doing a search. Also, consider setting up keyword alerts.
If you know of any properties on OC that fit my criteria please let me know. Huntington Beach, Newport and Laguna are on my list too, just need to find something on my budget on the right location.
Hey @Ariel G. I live in the valley and I know that what you're talking about is happening up here. I can't speak to whether it's done on the up and up or not, but I know condos especially are being rented out in this manner.
I do a lot of work Downtown and can't think of any buildings that have a formal position on vacation rentals, I'd doubt any HOA would take such a position in the early stages of that industry.
Your success here would likely hinge on the same factors you'd find anywhere for this strategy. 1) how open and transparent you are with your neighbors 2) how selective you'll be with your guests/tenants 3) how responsive you'll be to complaints and problems.
Condo owners in urban areas, such as Downtown, will be very concerned about their safety and ability to limit access to their buildings. If you're consistently giving unsupervised access to visitors/guests that will undermine those security concerns. Make sure you've addressed this before you make your purchase.
Having said all that, there's always a "first guy" why not you? I'd target buildings that are investor friendly and perhaps where there are a greater number of tenants vs. owners in residence. You'll likely want to pick an area that either targets a specific niche (think Arts District for culture travelers or Financial District for business travelers) or pick the tourist/convention centers such as South Park, near Staples Center.
There are a lot of hotels planned Downtown and that are coming online and under construction make sure you understand hotel rates and have a value proposition to set you apart.