Short Term Rental viability

[Michael Uvaydov]

Hello All,   I currently have a few Long term rental properties in the Buffalo, NY Area.  My spouse and I find ourselves visiting from time to time for family vacations, to check up on our properties and for her to work at a satelite office related to her employment.  

We are considering purchasing a single family or duplex in the area to serve as a place to stay during the visits and make it available as a STR when not being used by us.

I have been told that whether or not you are approved for an STR is dependent on the area. I am unfamiliar with that aspect of Buffalo and would appreciate some advice on the process and likelihood of success in getting the STR approved.

What areas would be viable and still somewhere you would want to visit with the kids?  

Also, are there any Co-Hosts you would recommend?

Thank you. 

[Timothy Smith]

@Michael Uvaydov STR ordinance was just updated here in Buffalo, and yes, it is much stricter than previous. The biggest changes are that it is based on zoning and no longer just an application, higher application/registration fees, and tighter rules if you do not owner-occupy (limited to a 2-family).

Lots of reasons fueled this, most of which are not backed by hard data. NIMBYism, the belief that STR effected affordable housing, and STRs driving up prices being the main ones. I will admit there are many problems with slumlord STR owners, just like LTR, and people trying to circumvent the regulations. This ended up punishing those trying to operate above board and follow the rules. I see many furnished MTR/LTR units hitting the rents market — or even for sale — as STR operators have been shut down.

My experience is that demand is cooling off and operational costs eat deeply into the profit margin. Canadians are not visiting is a notable concern. If you are going to move forward, pick an area where you can easily pivot to MTR during low-demand months or even underwrite as LTR.