Strategies for associations changing frequency requirements on STR

[Nadia Daggett]

Thank you in advance for any new strategies. I am the broker of Investing N Florida in Tampa Bay, providing property management for short-term rentals, especially corporate rentals like executives, traveling nurses, oil field turnovers, snowbirds, and more. These typically last 3 to 4 months - midterm stays. These rentals are highly profitable, with occupancy consistently exceeding 90% compared to weekend stays. Despite this success, I'm facing challenges as associations are changing their frequency rates even for these midterm stays. Our lease is structured as a 6-month lease with a 30-day notice to break it at any time, accommodating 3 or 4-month tenants. While this has worked well, associations now explicitly limit tenants to 2 or 3 per year. Have fellow investors discovered any strategies or loopholes to navigate these changes?

[Zachary Deal]

I would do your best to form a good relationship with HOA presidents and members and see if there is any way to amend the bylaws for a very small percentage of units. Alternatively if you are capped at 2 tenants max doing a 4 month minimum term or switching to LTR may make the most sense.