I just bought a condo in Northstar (Placer County). The county just passed a temporary pause on new STR permits. I need to make money soon on this, do I list it anyway? Also the previous owners still have a permit, do I try and renew it through them (renewals aren't paused only new permits)? Any advice?
I thought only non-vacation STR markets could be regulated! Sorry...you'll hear that a lot, but you are living proof that all markets are subject to regulation impacting STRs. Always good to have a plan B for STR investing.
For your situation:
1. Try 30 day rentals...might be good enough to pay the bills for awhile. Though it'll be less money than STR.
1a. Start a website - aMonthinTahoe.com and try to pull off a @Brandon Turner
2. Definitely still apply for a new permit and say that you are grandfathered because you purchased the property as an STR. Don't just give up. I'd move fast.
3. Pull together some friends and treat it like a time-share. They pay $XXX per person per ski season and they get 3 weeks of access
4. Wait a few months until it appreciates another $100K and sell.
What does the law say about transferability of permits? Can you use the previous owner's? Could you pay the previous owner to keep their permit active and keep using it?
@Alex S. Thank you for the insight. What exactly is the Brandon Turner method?
Not sure, I think if the county sees a different owner they will force me to pull a new permit.
Brandon Turner created a month-long stay website for his 3 properties in Maui: https://www.amonthinmaui.com/
You need to call the county immediately and get the truth data on STR permits. Explain your situation and ask them to transfer the permit, or write you a new permit because you bought the place before the ordinance was created.