Something that can seriously change the way you manage and market your short term rental is the local rental regulations and laws. When these things change, it may require you to offer longer rentals, shorter rentals, or make other changes that shake up the way you run your business.
Because this is such an important factor in offering a short term rental, it’s something we always ask about in the CHBO Corporate Housing Real Estate Report. Every city is going to be different, and only you know what changes have come across in the last year or so. However, getting an idea of how widespread these regulations and laws are can offer insight into the market as a whole.
Back in 2016, about 29% of the respondents to our annual survey said that new laws and regulations in place do effect having a short term rental. In 2017, the number went up to 35%, a pretty significant jump between the two years. Things dropped down again in 2018 to 23%, with 27% saying there had been no changes, and everyone else unsure.
In our 2020 report (which you can access from your CHBO dashboard to see all sorts of information from our surveys), things have changed yet again. This year, about 30% of the respondents noted that new laws and regulations had changed the way their short term rentals work, while about 24% said that no changes were made. About 17% said that they weren’t sure about changes, while 29% marked the option for “other.”
With nearly a third of the respondents saying they had experienced new laws and regulations, it shows that it’s a good idea to stay on top of these things. When you aren’t sure about the rules and laws around your short term rental, you can run into problems. There may be fines or other repercussions for offering an apartment that isn’t entirely legal in your city.
Since over 15% of our respondents indicated that they aren’t sure about new laws, take some time to find out if any changes have been put in place in your area. It’s the best way to ensure you keep making a profit by offering short term rentals for business executives, traveling nurses, and other people who need housing that isn’t permanent.
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