What happens if regulations change in your market?

[David Taylor]

As my wife and I research options for our first short-term vacation rental property, we are looking very closely into local regulations in each of the markets/destinations we are interested in. 

What happens if you have an established short-term vacation rental business in an area, but then the local municipality decides it no longer wants to be AirBnB friendly, and enacts new regulations that could put you out of business? Has anyone here experienced this? Do local governments typically “grandfather” established businesses in, or do you simply risk losing your investment?

Thanks!

[John Majoris]

Hi David,

I have the same concerns, and one of the ways I'm dealing with this is by investing in a mature market with a lot of STR's. My thinking is that the more money coming into a town/municipality via STR's, the less likely they'll be to outlaw them.

Good luck!