Areas with the Best and Worst Legal Environments for STRs

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Areas with the Best and Worst Legal Environments for STRs

Jason Collins
Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes

Hi Everyone,

Just curious as to what your thoughts are for areas the with most and least accommodating laws for STRs.

Also, how tightly are the rules enforced?

For example, in Sarasota FL within the city limits they allow 7 day minimum rentals.

Outside the city limits but within Sarasota County has 30 day minimums.

There are a few areas zoned for short term rentals but these are very rare (and expensive).

I was recently in the Pigeon Forge area and it seemed the laws were very lenient for investors, but researching nearby Asheville seemed extremely adverse to investors...

It appears there is even a company that cities hire that tracks down illegal rentals and verifies addresses.

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Alice Horn
Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
6y

We actually relocated our business from Miami to Orlando (Osceola and Polk Counties) for that exact reason. It was impossible to scale our business in Miami without breaking the law. Osceola and Polk are very STR friendly and have a longstanding history of supporting and encouraging vacation rentals.

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    6y

    I wouldn't want to put a STR anywhere that it is illegal to do so, and I'm not quite sure why anyone else would want to, either. If I had a STR pop up on my residential street I would raise hell. Who wants to live next to a hotel, with strangers coming and going every day of the year?

    STRs can be a wonderful investment choice if done properly, and in areas zoned for such.  Even if you could get away with it without the police being called, it is extremely inconsiderate of others. 

    [email protected]806-672-7102
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    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    6y

    You have to be careful as many areas have rules in place that they will enforce. Other places could enact new laws. Rural areas and tourist hotspots seem less likely to be affected as these areas bring in a lot of tourist dollars.

    A STR in a normal neighborhood is asking for trouble.

    0Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    6y

    Places with a large industry or perhaps a tourist market are good.  Industry = college, military base, refinery, shipyard, aerospace, manufacturing, etc.  I would stay away from Dianetics.

    1Reply
  • Amanda Ferguson
    Destin, FL · Member since 2019 · 55 posts · 50 votes
    6y

    I may be a little biased, but I would consider the Florida Panhandle.  Very short term rental friendly and very few restrictions on short term rentals in this area.  Rented just came out with the top 100 markets for short term rentals for 2020 and it was listed #1.  

    2Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Amanda Ferguson

    Thanks Amanda. The beaches there are beautiful. I had actually researched the Mexico Beach area looking for bargains after the last hurricane but didn’t pull the trigger on anything.

    0Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Paul Sandhu

    Thanks Paul!

    0Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Collin H.

    Thanks Collin.

    I wasn’t advocating for doing anything illegal.

    From what I have seen the penalties can be as stiff as thousands of dollars versus unenforced laws where entire areas have been short term rentals for decades.

    Interestingly, several states (Fl and NC) have come close to passing sweeping rental friendly laws essentially saying that as long as a home is used for residential (not commercial) purposes, it is the property owners right to allow for long or short terms rentals.

    0Reply
  • Timothy W.
    Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    6y

    What's it like in Anna Maria?  I suspect once you get out of Sarasota county and into Manatee it will be a lot easier to do business.  Frankly I've been thinking of a 50 dollar a month closet/office there just to relocate my business out of Hillsborough.

    1Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @John Underwood

    Thanks John.

    I agree that one of the drawbacks to investing in a short term rental is that a change in laws can wipe out your entire business model.

    1Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Tim W.

    It is my understanding Anna Maria and Holmes Beach have very few regulations at this point.

    Manatee County officials have proposed contracting with AirBNB to collect bed taxes for them and possibly registering short term rentals but I don’t believe this has passed yet.

    0Reply
  • Timothy W.
    Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    6y

    @Jason Collins

    That sounds like Manatee.  They know they make money getting people to the beach to visit.  Sarasota makes money getting them to move there and die of old age.

    1Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    @Jason Collins according to a report by rented.com you should be careful about buying an STR in states that are very expensive to live in and certain cities in states where there is a shortage of homes. Google best Vacation Rental markets and the above website and you will find it.

    1Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    6y

    We actually relocated our business from Miami to Orlando (Osceola and Polk Counties) for that exact reason. It was impossible to scale our business in Miami without breaking the law. Osceola and Polk are very STR friendly and have a longstanding history of supporting and encouraging vacation rentals.

    3Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Alice Horn

    Thanks Alice.

    Great to know. I had read an article that MIami-Dade went as far as to shut off the water of short term rental and now that case is moving through the court system.

    Orlando area seems like the place to be!

    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    6y

    @Jason Collins MUCH less drama here, and you have peace of mind knowing all the properties are legal. 

    1Reply
  • Amanda Ferguson
    Destin, FL · Member since 2019 · 55 posts · 50 votes
    6y

    Here's a link to the report from rented on the top 100 short term rental markets for 2020.  

    https://www.rented.com/wp-content/uploads/2020/07/2020-Rented-Report-Final.pdf?utm_medium=email&_hsmi=91024746&_hsenc=p2ANqtz-9jJLaujB9sbohP0kK9iX81PE4n6iKrEdqcsxV34SDo7JJwTbklwRJHSLt4ss-1emMswJw70SILymqqneAlPxqqrUnnt-h_rh4qtpftgpv_EgvMcxk&utm_content=91024746&utm_source=hs_automation

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  • Joseph Bafia
    Investor · Raleigh, NC · Member since 2019 · 314 posts · 280 votes
    6y

    You're right about Asheville proper...very strict. WIth not enough homes for locals, investors buying things up and prices skyrocketing, STR is not a good word there. However, surrounding areas have great value. At some point, Asheville needs to expand (already doing that into Weaverville) so appreciation in outying towns will be good. My STRs are about 45 mins north of Asheville and do well (in a community that really favors and thrives off STRs).

    1Reply
  • Cindy Coker
    Rental Property Investor · Asheville, NC · Member since 2016 · 32 posts · 17 votes
    6y

    Asheville will certainly track down and fine illegal STR's, $500/day. We rented our furnished rental as a 30day Vacation Rental (not short term rental - different meaning under NC State law). At one point, we were advertising on VRBO, for a 7day minimum, and stated clearly that we blocked 30days for any guest, even if they only stayed a week.


    We received a certified letter for the $500/day penalty, but they dropped it when we changed our minimum to 30 days. We put within the text of our listing, that "early checkout accommodation was sometimes Possible, with scaled rates, if a shorter visit within the blocked 30days was needed, and to talk with us" - something along those lines. We would charge roughly $200/nt if they checked out early and stayed a week, $150/nt for 2wks, $95/nt for 3 wks, and $86/nt for a month. Something like that.

    Now we only do 90day minimums, to lighten up our hassles with sales and occupancy tax reporting.

    1Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Amanda Ferguson

    Thanks Amanda. I hadn’t seen that. Definitely a good start to investigating areas.

    0Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Joseph Bafia

    Thanks Joseph. I had read some articles about North Carolina passing legislation making all short term rentals legal. But it looks like that may have stalled.

    0Reply
  • Jason Collins
    OP
    Rental Property Investor · Sarasota, FL · Member since 2018 · 46 posts · 76 votes
    6y

    @Cindy Coker

    Thanks for your insight.

    Sounds like a huge hassle. Sarasota is not nearly as strict in enforcement. Typically if there is a complaint from a neighbor they start to investigate.

    We try to buy properties only in the area that allows weekly rentals.

    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    6y

    This just happened!  City of Miami Beach LOST the suit on leveraging exorbitant vacation rental fines. They had the highest fines in the country, so hopefully this will set a precedent for other municipalities. https://www.miamiherald.com/news/local/community/miami-dade/miami-beach/article244412907.html

    2Reply
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