Short Term Vacation Rental Investing: Regulations

5 Replies

Good Day BP Community!

I am looking to invest in my first - hopefully of many - Short Term Vacation Rental along the east coast (North Carolina, South Carolina, Georgia, and Florida).

I've found through research that STR Regulations are inevitable due to pressure applied from large hotel corporations. Does anyone have any insight as to how this might affect - or has affected - the STR business in the states listed above?

Has anyone felt the effects of regulations in those states?

Florida is generally very friendly towards STR overall, but it really depends on the local regulations and even the HOA. "Condotels" are popular in some parts of Florida, where every condo in the complex is available to rent on a short term basis and sometimes (as an owner) your HOA fee will help cover the cost of the HOA to manage the listing for you. I'm not an expert on Florida at all, but I know STR is super common there and can be very lucrative if done correctly. I'm not familiar with the other states regulations.

Originally posted by @Devin Fakner :

Good Day BP Community!

I am looking to invest in my first - hopefully of many - Short Term Vacation Rental along the east coast (North Carolina, South Carolina, Georgia, and Florida).

I've found through research that STR Regulations are inevitable due to pressure applied from large hotel corporations. Does anyone have any insight as to how this might affect - or has affected - the STR business in the states listed above?

Has anyone felt the effects of regulations in those states?

- Very Respectfully,

Devin Fakner, MBA

You are going to be more specific to your search. Each city is passing their own STR regulations.

@Devin Fakner narrowing it down to which communities is key and I personally prefer areas that have regulations in place and you know what they are as opposed to areas that do not have them in place and may place regulations you will have to live with after purchase.

I have a lake house in SC and since areas around lakes tend to be more rural their is less pressure for regulation.

@Devin Fakner Be very careful in SC. Most of the major metros have regulated quite heavily. The ones that have not are in the process. If you're in a smaller town or more rural area, you'll probably be ok for a while, but it seems most of these regulations are geared towards weeding out the out of state investors in preference or resident owners. I don't blame them. Hospitality is a huge industry in SC, so if they're going to allow STRs, they may as well make sure they benefit the resident and state taxpayers more than out of state owners. Because Charleston is a vacation and wedding destination, we've seen a lot of properties turned into party houses, which the neighbors hate. Some of the regulations hope to create better management by making the owners be present during the rental periods (I.e.multifamily, cottage house, guest house, MIL suite, etc).