(Updated May 2013)
According to the 2013 NAR Investment and Vacation Home Buyers Survey, 80% of respondents purchased a vacation property for personal use, but 23% purchased with the intent of renting to others. Renting out a vacation home can offset the costs of this investment until retirement. But what happens when a community acts to restrict short-term rentals? Read on... and you'll find out. (S. Hogan, Information and Web Content Specialist)
The Short-Term Rental Debate
- Increased noise and traffic.
- Reduced housing stock available to those who live and work in a community.
- Unfair competition with licensed establishments.
Impact of restrictions:
- Diminishes value of investment property.
- Reduces the pool of buyers able to purchase in high-demand vacation areas.
- Infringes upon property rights.
Benefits of short-term rentals:
- Promotes tourism.
- Generates revenue for community.
- Defrays costs of a vacation/second home.
Short-Term Rental Conundrum
Lessons Learned: The Good & Bad in Short-Term Rental Regulation (The Short Term Rental Advocacy Center, no date)
The Basics of Legal Short-Term Rentals (Curbed Chicago, Apr. 5, 2013).
Personal, Financial Investment Returns Make Short-Term Rentals Ever More Popular (DeadlineNews.com, Jan. 27, 2012).
Short-Term Rentals Ever More Popular, but Not Without Risks (DeadlineNews.com, Dec. 23, 2011).
Risks and Rewards of Short-Term Rentals: A Starter Guide for Property Owners (Property Management Software Guide, Dec. 20, 2011).
Market for Vacation Homes is on the Rise (Wall Street Journal, Jan. 10, 2011).
Home Sweet Home? The Efficacy of Rental Restrictions to Promote Neighborhood Stability (Scholarly Works, 2009).
Win, Lose, Compromise
Civic Forum Debates Beach Rental Issue (Fort Myers Beach Observer, May 1, 2013).
Austin Broadens Short-Term Rental Rules (Statesman.com, Feb. 28, 2013).
News from the New York State Senate: The Golden Bill Was Amended On May 7, 2012 (Project Vacation Rentals, May 16, 2012).
Short Term Rentals Causing Long Form Headaches for Council (KUT News, Jan. 10, 2012).
Hey, Wanna Rent My Couch? (New York Magazine, Nov. 27, 2011).
Articles, Surveys & More from NAR
NAR Investment and Vacation Home Buyers Survey 2013 (National Association of REALTORS®, Apr. 2013).
Economic Impact of Transient Vacation Rentals (TVRs) on Maui County (Prepared for the REALTORS® Association of Maui, Jan. 8, 2008).
Websites & Other Resources
Short Term Rental Advocacy Center - The Short Term Rental Advocacy Center (STRAC) was created by Airbnb, HomeAway, TripAdvisor, and FlipKey to engage with policymakers on behalf of community members. STRAC has several local chapters across the U.S., and educates communities on short term rental best practices and ways to get involved.
Protect Vacation Rentals - A collection of articles posted by "professionals against the legislation banning short-term rentals in New York City" (Source: Protect Vacation Rentals). See this site for articles, legislation, and more with a New York focus.
Community from HomeAway - HomeAway (www.homeaway.com) connects travelers with short-term rental properties, and Community from HomeAway is a member-driven site with topic forums, resources, groups, and blogs for both travelers and property managers.
Rentmix.com - aggregates vacation and short-term rental listings from several sources (AirBnB, HomeAway, and FlipKey) and shows listings on a full-screen map. For a bit more information on Rentmix.com, see this AGBeat article.
Vacation Rental Tax Compliance Frequently Asked Questions, HomeAway Connect
* Please check with local government in your rental property area for information on permits, taxation, and regulations.
eBooks & Other Resources
The following eBooks and digital audiobooks are available to NAR members:
Buying a Second Home: Income, Getaway or Retirement (Adobe eReader)
Complete Guide to Investing in Rental Properties (Adobe eReader)
How a Second Home Can be Your Best Investment (Adobe eReader)
How to Succeed and Make Money with Your First Rental House (Kindle, Adobe eReader)
Leases & Rental Agreements (Adobe eReader)
Second Homes for Dummies® (Kindle, Adobe eReader)
The Unofficial Guide to Managing Rental Property (Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800-874-6500 for assistance.
Buy it, rent it, profit!: Make money as a landlord in any real estate market (New York, NY: Simon & Schuster, 2009).
Vacation home fractional conversion: A complete guide for home sellers, builders and real estate professionals (Chicago, IL: Fractional Retreats LLC, 2009).
Vacation nation: The complete guide to timeshare, private residence clubs, fractionals & destination clubs (Chicago, IL: BookSurge Publishing, 2009).
Investing in a vacation home for pleasure and profit (Mason, OH: Thomson-South-Western, 2006).
Complete guide to second homes for vacation, retirement, and investment (New York, NY: John Wiley & Sons, 2000). HD 1341 EL2c
Field Guides & More
These Field Guides and other resources in the Virtual Library may also be of interest:
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The inclusion of links on this field guide does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this field guide complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.