Short-term rentals have seen a significant decrease in the desire for real estate professionals. And we at Mindful Capital Group know exactly why. There are thousands of people who seek to own a personal vacation home. However, they don’t want to rely on house sitting and the home being unused for the portions of the year. In these cases, people hope to rent these homes out. Unfortunately, in many states, there are a large number 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 on two main components. The first is the type of structure that the rental is. This 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 thirty days. Each state has different laws as to what defines a short-term rental, so it is important to do your research for the state you live in. Somehow, Airbnb has found a way around this.
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.
So if you are looking to team up with a group that knows everything about commercial real estate (as well as industrial real estate) in South Florida, and knows to stay away from the short-term rental world, then please contact Mindful Capital Group on how to get started in this field. We are here to help you invest right here and right now.