Field Guide to Short-Term Rental Restrictions
(Updated March 2010)
According to The 2009 NAR Investment and Vacation Home Buyers Survey, 89% of respondents purchased a property for their personal use, while one-quarter also considered the rental potential. 26% purchased a vacation home with the expectation of converting it to their primary residence in the future.
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 Specialist)
The Short-Term Rental Debate
Why restrict?
Increased noise & traffic.
Reduced housing stock available to those who live & 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
Keeping the Vacation Home in the Family: Another Use for Limited Liability Companies, (Journal of Financial Planning, Feb. 2010). Q
Unlicensed rentals draw concerns, (The Ledger, Oct. 10, 2009).
Vacation Rental Bans, (HomeAway, 2009).
Vacation property: rental and resale, (The Tax Advisor, Oct. 2008). Q
Fiscally Fit: Renting Out a Second Home While Keeping Your Sanity, (Wall Street Journal, Feb. 2008). Q
What's at Stake?
Easy on the vacation rental restrictions, (Hi-Desert Star, Oct. 14, 2009).
Vacation-home renters irk full-time neighbors, (REALTOR® Magazine Daily Real Estate News, Sept. 13, 2007).
Vacation rentals being hit for unpaid taxes, (Honolulu Star-Bulletin, Apr. 22, 2007).
Winning the right to rent condos, (REALTOR® Magazine Online, May 27, 2004).
Win, Lose, Compromise
Vacation Rental Company's Closure Stirs Outrage in Bodega Bay, (Pressdemocrat.com, Feb. 2010).
Proposed Tofino Bylaw Would Change Short-Term Rental Rules, (Westerly News, Feb. 2010).
Cabin Owners Rebel against New Rental Regulations, (Island Park News, Feb. 2010).
Quiet Summer at the Lake: Demand has Cooled for Vacation Homes in the District, (Fedgazette, Nov. 2009). Q
Rental ordinance issue resurfaces, (Flagler County News, Oct. 14, 2009).
City eyes tourist fee to boost marketing, (North County Times, Oct. 12, 2009).
Avon to consider short-term rentals, (Vail Daily, Oct. 10, 2009).
Brentwood targets vacation rentals, (The Tennessean, Oct. 1, 2009).
Vacation home rentals wobble, more falling into foreclosure, (Orlando Business Journal, Apr. 17, 2009).
eBooks & Other Resources
eBooks.realtor.org
The following ebooks and digital audiobooks are available to NAR members:
Complete Guide to Investing in Rental Properties (Adobe eReader)
How to Succeed and Make Money with Your First Rental House (Adobe eReader)
Leases & Rental Agreements (Adobe eReader)
The Unofficial Guide to Managing Rental Property (Adobe eReader)
Buying a Second Home: Income, Getaway, or Retirement (Adobe eReader)
How a Second Home Can be Your Best Investment (Adobe eReader)
Second Homes for Dummies® (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.
2009 NATIONAL ASSOCIATION OF REALTORS® Investment and Vacation Home Buyers Survey, (Washington, DC: NATIONAL ASSOCIATION OF REALTORS®, 2009).
Investing in a vacation home for pleasure and profit, (Mason, OH: Thomson-South-Western, 2006).
The 2006 NATIONAL ASSOCIATION OF REALTORS® Profile of Second-Home Owners, (Washington, DC: NATIONAL ASSOCIATION OF REALTORS®, 2006).
How a second home can be your best investment, (New York, NY: McGraw-Hill,2004). HD 1341 K28
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:
Field Guide to Vacation, Resort and Second Homes
Field Guide to The Condominium Market
Field Guide to Zoning Laws & Ordinances
>> Have an idea for a new Field Guide? Click here to send us your suggestions!
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 to 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.
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