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Subject Expert
Many major vacation markets are seeing high saturation and low vacancy. A lot of municipalities are increasing their regulation as well. Investors got in when borrowing was cheap, and many of them got in over their heads.
That being said, if you find the right property In the right market, it can be incredibly successful!
Be clear that operating a short term rental is more of a part time job than a passive investment. You have to be involved to be successful, and you have to care.
It’s interesting that with a high saturation, it still has a low vacancy.
Visual Storyteller
Great comment
Coach
It depends on the location. Regulations can change immediately—especially for vacation rentals. This will cost property to be more expensive, but some markets specifically zone properties as ok for short-term rentals. If you buy a property like this, you’ll likely be grandfathered in.
Regulation changes are the toughest part. I’ve got a few and it gives me deep anxiety….
Coach
I can only speak to our area (cape cod) but I feel ok about it. There is a push for some regulation but it all seems pretty reasonable to me. Plenty of people have vacation homes they rent out on the cape and so the community isn’t trying to push STRs out entirely but trying to keep out investor types that want to buy up 3+ properties which I think is fine. We have two which is plenty. Other than that it’s about regulating the occupancy (eg if you are a 2 bedroom they don’t want your putting in air mattresses and saying it can sleep 10. That makes sense from a fire code perspective.