City's rules and regulation

City's rules and regulation

Member since 2021 · 101 posts · 55 votes

Hi everybody! I need your guys opinion. I found a city to invest in that is by a major national park but it is more of a metro city. I believe I can use the hybrid model of using it for both STR and MTR. After reading the city ordinances, it was saying all I pretty much have to do is pay an "excise tax" and register as STR. So I called up the city to make sure that was it and I got confirmation that's all I would have to do and they are somewhat new to the STR space. They are still setting up a system to both collect an "excise tax" and for me to register my property as a STR, but for now I wouldn't be able to do both those things and they will notify me in the future when their system is up to do that. So for now I wouldn't really have to do anything for the city to start running my STR in that city. This seems too easy of a process to start running a STR, is this a good thing or should I run from a city that doesn't really have that many rules or regulations yet? Any input is very much appreciated!

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y

Try and get this in writing or at least write down the date and person that gave you this information.

Good Job doing the research before committing to a property..

See this reply in the discussion

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  • Cambridge, MA · Member since 2015 · 652 posts · 736 votes
    2y

    If you are planning for both MTR and STR and are able to pivot to 100% MTR if things go south, you should stick with this city. I don't know of a city that regulates against MTRs. If you were to switch locations, I would recommend a location that has already dealt with STRs. They are much less likely to change the rules on you. The locations that haven't dealt with STRs can, and probably will, in the future.

  • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    2y

    Well it sounds like they've already passed laws regarding STRs, they just haven't had time to implement it.  I would not be worried about that, as long as they specifically allow STRs, and the process and fees have all been voted on and are in writing.  Often the regulations are passed and don't take effect for months.  

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    Try and get this in writing or at least write down the date and person that gave you this information.

    Good Job doing the research before committing to a property..

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Carolyn Fuller:

    If you are planning for both MTR and STR and are able to pivot to 100% MTR if things go south, you should stick with this city. I don't know of a city that regulates against MTRs. If you were to switch locations, I would recommend a location that has already dealt with STRs. They are much less likely to change the rules on you. The locations that haven't dealt with STRs can, and probably will, in the future.

    Yeah that's what I was thinking too. Thanks, good advice!
  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Lauren Kormylo:

    Well it sounds like they've already passed laws regarding STRs, they just haven't had time to implement it.  I would not be worried about that, as long as they specifically allow STRs, and the process and fees have all been voted on and are in writing.  Often the regulations are passed and don't take effect for months.  


    Thanks for your input!

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @John Underwood:

    Try and get this in writing or at least write down the date and person that gave you this information.

    Good Job doing the research before committing to a property..


     Yup I did that as well! Thanks for your input!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    The place sounds reasonable. I would like to know what metro area we are talking about.

  • Bonnie LowPro Member
    Lender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
    2y

    I agree with Carolyn that MTR is a pretty safe pivot if the numbers work for you since the STR scene is still a little unclear. I personally wouldn't take the advice of someone answering the phone at the City office as gospel. I worked in local government for many, many years and know that there can be many layers and getting to the right person is critical. Usually this is going to be someone in the City planning department. It's a good place to start. Ask to see the minutes of the Council meeting where their STR regulations and excise tax were discussed so you can see not only what the final outcome was, but also see the comments from the staff and council members so you can see if they were entirely in support, somewhat in support, or strongly divided. Given the sentiment towards STRs, even if it looks like it's going to be a safe market, that can change quickly and dramatically as we've all seen. So having an alternative option is always best. You're doing a great job with your due diligence. Make friends with someone in the planning department so you can stay in the know!

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    This wouldn't be Akron, Ohio, would it?

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2y

    I would feed comfortable moving forward. As John said try to get the name of the employee, perhaps send an email recap and seek confirmation.

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Michael Baum:

    The place sounds reasonable. I would like to know what metro area we are talking about.


     I was looking into Akron, Ohio.

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Bonnie Low:

    I agree with Carolyn that MTR is a pretty safe pivot if the numbers work for you since the STR scene is still a little unclear. I personally wouldn't take the advice of someone answering the phone at the City office as gospel. I worked in local government for many, many years and know that there can be many layers and getting to the right person is critical. Usually this is going to be someone in the City planning department. It's a good place to start. Ask to see the minutes of the Council meeting where their STR regulations and excise tax were discussed so you can see not only what the final outcome was, but also see the comments from the staff and council members so you can see if they were entirely in support, somewhat in support, or strongly divided. Given the sentiment towards STRs, even if it looks like it's going to be a safe market, that can change quickly and dramatically as we've all seen. So having an alternative option is always best. You're doing a great job with your due diligence. Make friends with someone in the planning department so you can stay in the know!


    Great advice and good points! Will definitely try and do that. 

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Sarah Kensinger:

    This wouldn't be Akron, Ohio, would it?


     That's funny that you say that, because it is haha. Why do you ask?

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Andrew Steffens:

    I would feed comfortable moving forward. As John said try to get the name of the employee, perhaps send an email recap and seek confirmation.


     agreed! Thanks!

  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Hehe @Ivan Aldana! Where I was born. So I have always been curious about what brings STR guest to Akron. I guess I have a blind spot when it comes to non-vacation areas.

    What would be your guest demographic for the area? 

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y
    Quote from @Ivan Aldana:
    Quote from @Sarah Kensinger:

    This wouldn't be Akron, Ohio, would it?


     That's funny that you say that, because it is haha. Why do you ask?

    Because I live an hour from there and know the STR regulations. ;)

    BTW I don't exactly think it's the best area for a STR. What leads you to the area?

  • Member since 2021 · 101 posts · 55 votes
    2y
    Quote from @Sarah Kensinger:
    Quote from @Ivan Aldana:
    Quote from @Sarah Kensinger:

    This wouldn't be Akron, Ohio, would it?


     That's funny that you say that, because it is haha. Why do you ask?

    Because I live an hour from there and know the STR regulations. ;)

    BTW I don't exactly think it's the best area for a STR. What leads you to the area?


     yeah that's what the data is kind of telling me too. I just mostly liked it because its next to a major national park that attracts millions.

  • Realtor · Cleveland, OH · Member since 2023 · 340 posts · 215 votes
    2y

    Hi, great information as an Ohio Realtor, I came by to tell you that a lot of people are investing in Ohio. If you have any questions, please contact me. Thanks!

    Regina Blake-Ohio Realtor

  • Cambridge, MA · Member since 2015 · 652 posts · 736 votes
    2y

    To add to what Bonnie is saying... In my town, the discussions went on for a year and the direction of the policies were pretty consistently supported by the entire council. Then election season began and all of a sudden, everything went south. A councillor used STRs as an election year battle cry and turned the entire process topsy turvy. The policies that had been discussed for a year were ultimately passed but it was by a super slim margin. 

  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y
    Quote from @Ivan Aldana:
    Quote from @Sarah Kensinger:
    Quote from @Ivan Aldana:
    Quote from @Sarah Kensinger:

    This wouldn't be Akron, Ohio, would it?


     That's funny that you say that, because it is haha. Why do you ask?

    Because I live an hour from there and know the STR regulations. ;)

    BTW I don't exactly think it's the best area for a STR. What leads you to the area?


     yeah that's what the data is kind of telling me too. I just mostly liked it because its next to a major national park that attracts millions.

    Portage Lake area is really good! But if you could get closer to the park like around Cuyahoga Falls, STR do well but are also seasonal.
  • Developer · Cleveland / Akron, OH · Member since 2008 · 922 posts · 399 votes
    2y

    You also get the skiing traffic in the cold season (when it used to snow here). Especially if you are actually in the park (ie Peninsula), or directly adjacent. 

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