Short-Term Rental-purchase-Lake of the Ozarks

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Short-Term Rental-purchase-Lake of the Ozarks

Megan Penman
New to Real Estate · Kansas City, MO · Member since 2020 · 9 posts · 0 votes

I am looking at purchasing a home on the lake in Lake Ozark, MO- From what I see it is zoned as R-1 and that nightly rentals are prohibited. However, it is and has been a nightly rental for years on Airbnb- I called the city and the person who answered said there are no restrictions for nightly rentals... but I am running across articles that say otherwise... advice on how to do my due diligence before pursuing this purchase?

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Drake Schmid
Investor · Lake of the Ozarks, MO · Member since 2017 · 42 posts · 25 votes
5y

Hi Megan, i am a licensed agent here at Lake of the Ozarks. If you want to share a little more information on the property with me and I can help you find the answer to the zoning concerning STR here at the lake. You also should be aware that many HOA and Condo associations are limiting or eliminating STR. There has also been a major increase in the number of rental properties here at the lake and that has and will affect the STR market. It is a short season and few places get rented throughout the year. the typical rental season is just 100 days. I personally know several investors that make all their revenue in that summer rental season and just eat the holding costs on the remaining 9 months. A good location will extend your rental season and increase peak season rates. In my opinion it is worth spending more upfront on a good location.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    5y

    I would.get more info from the city/county. I'd want it in writing also.

    This still doesn't mean they can't change the rules one day.

    If you on the lake and it's a rural area without many hotels then the rules will likely remain in your favor, if you confirm they are in your favor now.

    Also since this is a true vacation spot don't rule out Vrbo. I get most of my bookings from Vrbo on our lake house and very few from the BNB place.

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    5y

    If code says it's R-1, you are inviting a lot of headaches, and your investment is living on borrowed time as a STR. Why risk it? Find a STR property that is in an appropriate zone and move on.

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  • Drake Schmid
    Investor · Lake of the Ozarks, MO · Member since 2017 · 42 posts · 25 votes
    5y

    Hi Megan, i am a licensed agent here at Lake of the Ozarks. If you want to share a little more information on the property with me and I can help you find the answer to the zoning concerning STR here at the lake. You also should be aware that many HOA and Condo associations are limiting or eliminating STR. There has also been a major increase in the number of rental properties here at the lake and that has and will affect the STR market. It is a short season and few places get rented throughout the year. the typical rental season is just 100 days. I personally know several investors that make all their revenue in that summer rental season and just eat the holding costs on the remaining 9 months. A good location will extend your rental season and increase peak season rates. In my opinion it is worth spending more upfront on a good location.

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