I’m a full-time middle school teacher and manage two short-term rentals in coastal Maine as my side hustle. Last year I grossed $73K across both properties. But lately, I’ve been losing sleep over local STR regulations. The city council keeps bringing up caps and bans, and I feel like one bad vote could tank everything I’ve built. I try to stay active in public meetings and be a “good neighbor” landlord, but it still feels like I’m walking a tightrope. How do you all deal with the uncertainty around STR laws, especially in tourist-heavy towns?
Honestly? The STR boom was never built to last. If you're not diversifying into mid-terms or LTRs, you're gambling with your future—and eventually the house wins.
Subject Expert
Forget the gross - what’s your net? And how much locked up equity do you have?
I expect the next 2 years to be very rocky for short term rentals in the US. Are you prepared to survive a 25% to 50% drop in stays? If not, get out now while you can.
(Fellow STR host here)
@associate 1, the STM market will tank. Many middle class families who would rent homes for vacations are losing their jobs and the job market is extremely rocky. The STR market will crash and the housing matket is expected to become over saturated with houses that won't sell.
Coach
How connected are you to the community? You can reach out to the other STR LLs and then set up some meetings with counsel members.
Alternatively just sell em now
Coach
I have two rentals on the Cape. I too feel there’s always a bit of uncertainty in what can happen, but I also know the Cape has always been a very heavy vacation rental community and they can’t afford to lose the revenue. Therefore, while I do think there may be more restrictions in the future (no more than two per owner, town registrations, occupancy regulations), I don’t think they would outright band short term rentals.
Short-term rentals are fast fading at this point. Unless you have a very niche type of property with some kind of special features that no one else has you should definitely start looking into long-term rentals as soon as possible. Or sell the properties you have and invest in multifamily units such as duplexes or a quadplex. Multiple doors is always a better investment than a single family unit.