New to Real Estate · Columbia, Maryland. · Member since 2020 · 10 posts · 1 vote
Good news (I think) to all of you, who have taken the time to respond to my previous post (What would you do in this situation?)!
Thanks to all the responses, I took the time to circle back to my city's bylaws, and I did not see an entry regarding short term rentals being prohibited. I also reached out to Navy Federal, and the second rider of my home disclosures doesn't mention STR or MTR. In other words, I am allowed to rent the property providing that I continue to meet the 14 days criteria of residence (vacation home loan) and I do not relinquish control to a management company. The lawyer who conducted the closing confirmed the later.
With regards to the response that I obtained from a member of the Planning and Permitting Division and the city not "permitting" STR , my lawyer's response went something like that - "permitting" as if "issuing a permit" or "allowing." My lawyer continued by saying - I own a rental in your city and know quite a few others who do as well.
So, with that said, what are your thoughts on the lack of details regarding STR in my city bylaws and my lawyer's response with regards to operating a STR anyways?
I am eager to read all your response that are thought provoking and push me forward on my real estate journey - thank you, thank you, thank you!
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Them telling you that it is not permitted would be concerning to me and prevent me from buying a STR property in that area.
They are not STR friendly and even if they don't have something in writing or aren't currently enforcing the rules they have today does not guarantee the same for the future.
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
3y
@Wilder Fuentes
Many cities don't have an actual ordinance prohibiting STR's. They use the zoning ordinance to prohibit them by uses.
By definition, they use hotel/motel which generally states a “A building in which there are guest rooms designed for temporary occupancy individuals on a daily rate to the general public of 30 days or less.”
Then you look at the actual zoning district your building is located in and you most likely find a hotel/motel are not one of the permitted uses and therefore it is prohibited.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Them telling you that it is not permitted would be concerning to me and prevent me from buying a STR property in that area.
They are not STR friendly and even if they don't have something in writing or aren't currently enforcing the rules they have today does not guarantee the same for the future.
You really need to check again and make sure they are saying what you think they are saying. In this context, permitting could mean either allowing or requiring a permit.
Look at the zoning map to see what's what. I know you have an attorney you are working with, but I would be a bit suspicious of his answer. It isn't authoritative at all and sounds like an answer you would get from a buddy. I know a guy who knows a guy doing it so no problem isn't something to base your business on.
You might want to see about another attorney to get a 2nd opinion. At the very least, get on the horn and see what they actually mean.
I know that you are already committed to the house so it behooves you to check, At least you won't have problems with the mortgage which is a big win IMHO.
Do you mind telling us where it is? I can't remember if you did that in the other thread.
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
3y
So is the member of the Planning and Permitting Division saying there are no current permits required for STRs? And that as of now, there are no laws one way or the other on STRs? Since STRs are a fairly new thing, most towns/counties do not have any mention of them in their laws. That also means they may also pass a law at any time. Have you read the minutes of the town council meetings for the last year or two, to see if there has been mention of them?
And as @Kenneth Garrett said, check out the legal definitions of hotels, motels, B&Bs and tourist homes in the city and county laws. For instance, where I bought is in an unincorporated part of the county, and hotels, motels, and tourist homes are taxed. Tourist homes are defined as a house having 5 or more bedrooms, but without cooking facilities for use of the guests. So that definition doesn't fit that of an STR.
Thank you for your insight. The property is located in a RMF-HD zone of Jacksonville NC. Thus far, I haven't had any luck with my research of city ordinances or zoning ordinances. So, I am trying a new avenue with the Jacksonville Tourism Development Authority. It is true that Airbnb advertises several homes in the area. Some of which are managed by owners themselves while others are managed by a management company. Quite frankly, I am loosing my Latin here!