CAPITAL CORP. SYDNEY

73 Ocean Street, New South Wales 2000, SYDNEY

Contact Person: Callum S Ansell
E: callum.aus@capital.com
P: (02) 8252 5319

WILD KEY CAPITAL

22 Guild Street, NW8 2UP,
LONDON

Contact Person: Matilda O Dunn
E: matilda.uk@capital.com
P: 070 8652 7276

LECHMERE CAPITAL

Genslerstraße 9, Berlin Schöneberg 10829, BERLIN

Contact Person: Thorsten S Kohl
E: thorsten.bl@capital.com
P: 030 62 91 92

Why are Short-Term Rentals Very Undesirable?

 

 

Short term rentals have seen a significant decrease in the desire for real estate professionals. There are thousands of people who seek to own their personal vacation home. However, they don’t want a house sitting and being unused for the portions of the year that they reside home. In these cases, people would hope to rent these homes out. Unfortunately, in many states there are a large amount of restrictions on short-term rental properties. In some cases, short term rentals are banned entirely.

 

What is a Short-Term Rental?

 

A short-term rental is a property that is based off of two main components. First, you have the type of structure that the rental is. These can range from a room, to an apartment, or a home. Secondly, the length of stay also defines what a short-term rental is. Some states define this as up to 30 days. Each state has different exact laws as to what defines a short-term rental so it is important to do your research for the state you live in.

 

What Restrictions Reside over Short-Term Rentals?

 

Short-term rentals have seen a ton of different restrictions and regulations over the past few years. Some cities have completely banned any form of them. Others have set amounts of days per year in which you are legally allowed to rent them out. In order for people to rent out a short-term rental, they are required to have a permanent residence at the location for some cities.

 

Too Many Restrictions for Profit

 

All of these restrictions and regulations have forced these types of properties to see a very large drop in popularity for real estate professionals. Especially with the COVID-19 pandemic causing a lot of travel to require quarantines and other serious measures. As it is, short-term rentals are almost worthless compared to the other types of investments in commercial real estate.

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