Originally Posted by
Gunfighter
Pros - Good ROI for certain properties. Buy the right ones and you make some good coin.
Cons - Many HOAs are taking a stand against short term rentals. One change to the DCCRs and you are out of business. We just voted to eliminate short term rentals (except sale, leaseback) in our neighborhood after the lone VRBO in our subdivision drew some unwanted attention. Some cities and municipalities are also adding restrictions and regulations on short term rentals. DYODD on pending legislation before making any big financial commitments.
Converting huge McMansions into assisted living facilities was a hot niche a few months ago too. Buy a big old house, hire a nurse and cook for daily visits and charge premium rents. I'm glad I dodged that bullet...
I'd expect more of this from HOA's.
People who buy homes in their neighborhoods, who pay $$$ into their HOA's for amenities, didn't do it so 10% of the owners can run a time share on the backs of everyone else. It's monetizing the community capital of the many for the sake of the few.
Yeah, "It's 'muh property, I can do what I want with it"...I get it. Zoning laws exist for a reason, and there's a good chance your property isn't zoned for an unlicensed hotel/short term rental which isn't properly insured for fires, escape routes, transient traffic, any personal injuries that occur when you submit a claim and your insurance company realizes your "guests" were short term renters, etc. There's an outside risk enforcement might come a-knock'n, depending on the neighborhood, and shutting your down, hard.
Some exceptions, of course (beach front comes to mind..in a certain price range, they're pretty much all rented and everyone knows it).
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Specific suggestions if you go down this road:
1. Leave extra batteries. There's a reason hotels make their TV remotes darn near unopenable.
2. Cameras. Cameras in non-private areas (no bathrooms, bedrooms) are allowed if disclosed upfront. Have a friend who's >$1 million property was trashed by a AirBnB renter who sent their teenager (and many, many friends) up to have a LAN gaming party. They couldn't prove it, and had to pay a bunch out of pocket -- quickly, because more "guests" were coming.
3. Hot tubs are a nice amenity. Try not to think about what's going on in them.
4. An "owners closet" that's really secure is a good idea.