Lesson learned: Why I now check building rules before running numbers

Lesson learned: Why I now check building rules before running numbers

Member since 2026 · 3 posts · 5 votes

Early on, I wasted hours underwriting units that looked perfect financially, only to later discover short-term rental restrictions at the building level.

Now I reverse the process:

1. Building rules first

2. Landlord flexibility second

3. Numbers last

It’s cut my deal vetting time significantly. Thought I’d share in case it helps someone else avoid the same mistake.

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
8mo

I recommend starting at the city level for restrictions, then going to HOA rules, then looking at the individual unit level. This is where I think working with a local agent with STR experience comes in handy. I know the city and most of the HOA's rules by memory and can save my clients time and potentially money.

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    8mo

    Nice tip!  Thank you.

  • Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    8mo

    Maybe not exactly what you're saying, but I get STR investors here in Colorado that ask me "What market gets the best return?" And my response is always that first you need to know the Airbnb laws, because there are some areas that do really well ... but only people grandfathered in under old rules are allowed to do short-term rentals.

    First Know Thy Laws!

    • Atlanta · Member since 2022 · 710 posts · 641 votes
      8mo
      Quote from @James Carlson:

      Maybe not exactly what you're saying, but I get STR investors here in Colorado that ask me "What market gets the best return?" And my response is always that first you need to know the Airbnb laws, because there are some areas that do really well ... but only people grandfathered in under old rules are allowed to do short-term rentals.

      First Know Thy Laws!

      you mean the STR laws right?  =)
    • Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
      8mo
      Quote from @Trent Reeve:
      Quote from @James Carlson:

      Maybe not exactly what you're saying, but I get STR investors here in Colorado that ask me "What market gets the best return?" And my response is always that first you need to know the Airbnb laws, because there are some areas that do really well ... but only people grandfathered in under old rules are allowed to do short-term rentals.

      First Know Thy Laws!

      you mean the STR laws right?  =)
      Yes, of course. And at least where I'm at in Colorado, they're changing all the time.
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    8mo

    I recommend starting at the city level for restrictions, then going to HOA rules, then looking at the individual unit level. This is where I think working with a local agent with STR experience comes in handy. I know the city and most of the HOA's rules by memory and can save my clients time and potentially money.

  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    8mo

    The original poster is spot on. Go to the city/county and find out WHAT is allowed and WHERE.  Then proceed from there.  Saves a ton of time.

  • Property Manager · USA · Member since 2018 · 85 posts · 50 votes
    8mo

    Exactly right! I just had someone ask me to manage their home. Before even giving them an estimate, I asked them for the municipality. I said you will be shut down before you can say OMG. This happens all the time. It's the best time saver...

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