Investor · OR · Member since 2022 · 28 posts · 11 votes
Hi all,
Curious about what everyone's take is and who has insight about what works best for them.
At what stage in the STR buying process do you start your permit application with the local municipality? Are there pros/cons for starting earlier or later that you have found?
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
I'd check it out first with a personal visit to the city. Before you commit to buy. If that checks out, then I'd get started on it as soon as you own the house. Of course they can't do their walk-through until you're ready to open, but I'd get started ASAP
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
I'd check it out first with a personal visit to the city. Before you commit to buy. If that checks out, then I'd get started on it as soon as you own the house. Of course they can't do their walk-through until you're ready to open, but I'd get started ASAP
I'd check it out first with a personal visit to the city. Before you commit to buy. If that checks out, then I'd get started on it as soon as you own the house. Of course they can't do their walk-through until you're ready to open, but I'd get started ASAP
Realtor · San Antonio, TX · Member since 2021 · 150 posts · 107 votes
3y
In San Antonio TX, you can apply before purchasing with the owner's notarized authorization. You'll then need to reapply once possession changes. Seems redundant, but it ensures you will have an active permit during the buy process. The city also has a interactive zoning map, which helps identify if a property is able to get approved for a permit based on density limits. I also advise looking outside of HOA's
I'd check it out first with a personal visit to the city. Before you commit to buy. If that checks out, then I'd get started on it as soon as you own the house. Of course they can't do their walk-through until you're ready to open, but I'd get started ASAP
Never needed a permit.
They require them in some cities in AZ, but they're easy to get.
Rental Property Investor · Baltimore, MD · Member since 2020 · 40 posts · 19 votes
3y
I would start the process sooner than later. I would say apply for the STR permit right after your offer is accepted and all inspections/contigencies results are back in and pass your standards. I'm in Deep Creek Lake, MD and the TVRU/STR permit process could take around 30 days from application to inspection to and approval according to my real estate agent (they also own STRs in the same area). I walked my property for the first time during my home inspection day. After my home inspectation finished with no major issues, I went to the county office and talk with the TVRU dept in person (could have been done by phone or email) to start the application and ask questions.
At that point in time, the only two things to stop the deal was my financing contingency or not getting an STR permit. All other contingencies had passed. So the sooner the better to hear back from the TVRU office for me. Luckily for me, my property was already an STR and the TRVU office could just transfer ownership on the current permit and I'll just have to renew when it expires.
Depending on your township's/HOA's policies on getting your permit my recommendation for when you should get your permit varies. If it's a long process where the township will need to get an inspection done on the property I would try starting the process right after you get it under contract. Besides that, if the township/HOA you are working with has a relatively quick process then it shouldn't be a problem for you to start the application process right after closing on the home.
I hope this helps and if you have any more questions don't hesitate to reach out!
Rental Property Investor · Baltimore, MD · Member since 2020 · 40 posts · 19 votes
3y
@Jacob F.
No, I didn't make "approval of a STR permit" a contingencies in my offer. I didn't think to do so at the time. This would be a good idea for me to do in the future. Especially in a new municipalities that I'm unfamiliar with STR permitting process. Also, it's depends on my negotiating power and current bids for property.
Curious about what everyone's take is and who has insight about what works best for them.
At what stage in the STR buying process do you start your permit application with the local municipality? Are there pros/cons for starting earlier or later that you have found?
So in HI we start the process immediately after the closing, but we have paperwork and everything established 3 weeks prior to closing. There's company that takes care of this. Got a permit after two months and that's the fastest because it's in the resort zone, if it's in a residential area it could take 7 months.