Field Guide to Short-Term Rental Restrictions
(Updated March 2011)
According to The 2010 NAR Investment and Vacation Home Buyers Survey, 89% of respondents purchased a property for their personal use, and one-quarter also considered the rental potential. 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
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 
Are Vacation Rental Regulations on the Rise?, (HomeAway, Dec. 10, 2010).
More destinations shut the door on vacation rentals, (USA Today, Aug. 6, 2010).
Keeping the Vacation Home in the Family- Another Use for Limited Liability Companies, (Journal of Financial Planning, Feb. 2010). Q
Short-term 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).
What's at Stake?
Dangers of short-term home rentals, (Insurance.com, Dec. 9, 2010).
Vacation Homes and Second Homes in Good Times and Bad, (Real Estate Taxation, Third Quarter, 2010). Q
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).
Win, Lose, Compromise
Market for Vacation Homes Is on the Rise, (Wall Street Journal, Jan. 10, 2011). Q
The Shrinking Second Home: Real-Estate Resorts Pitch Cabins, Cottages as 'Affordable Housing for the Affluent', (Wall Street Journal, Aug. 11, 2010).
Popularity soaring for short-term house rentals, (Statesman.com, Aug. 3, 2010).
County reaffirms ban on renting vacation homes, (Napa Valley Register, July 3, 2010).
New York passes ban on short-term apartment rentals, (USA Today, July 2, 2010).
Back to the Good Life, (Planning, July 2010). Q
Tax Deductions for Vacation Homes, (www.HouseLogic.com, Nov. 17, 2009).
eBooks & Other Resources
eBooks.realtor.org
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.
2010 National Association of REALTORS® Investment and Vacation Home Buyers Survey, (Washington, DC: NATIONAL ASSOCIATION OF REALTORS®, 2010).
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:
Field Guide to The Condominium Market
Field Guide to Vacation, Resort and Second Homes
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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