Short-term rental investors are quick to invest when they see dollar signs in the picture. Perhaps revealing the curtain before setting the stage can be more effective for a smoother more sustainable investment. What type of investor are you? From my experience, I have noticed there are 2 types of short-term rental investors. Some take into account and consider more things before investing, the ones who appreciate local economics and support life quality and research. Then there are the ones who see dollar signs and have a team behind them to set the stage, taking a back seat for doing the work. Both are fine, which one are you? No matter which style of investor you are, I hope you keep reading to learn a new perspective. My perspective takes into account those who make regulations and have to frequently change them depending on which style of investor comes into play in their town.
“Hippy Beach Retreat”
Imagine this, you found your next investment property. What are your first steps in research mode? Do you solely rely on your real estate agent to do the research, or do you take accountability, it is your investment after all. Having a real estate agent on your side is priceless as they bring so much to the table and assist in the decision-making process. Remember, it’s not their responsibility entirely as it’s not their investment. The point is, take responsibility as an investor, your real estate agent can only do so much as the professional.
The responsibilities I am talking about here are things like ensuring what rules and regulations are in place per city and state before launching and taking reservations. “If the county where I invested requires a bed tax collection, where does the money go (tourism development & local community support)?” “If I am investing within city limits, downtown perhaps, how does that affect affordable housing?” “What requirements are permitted to host a short-term rental?” “If I plan on being an absentee owner, investor, or out-of-state investor, where can I help in regards to supporting the local economy ( other than providing a home with headcounts to increase per-person spending in consumption goods)?” You may have no interest in these concerns and that’s okay. Meanwhile, the city officials, the people pulling the regulation changes are taking these steps and concerns into account when making regulation policies. Even our friends from Hostfully agree and have done their research. North Carolina was mentioned, as I live in Western North Carolina, I can conquer this is accurate. ” If you do not consider these things when investing in a short-term rental, your neighbors who do care and did their research will be grandfathered in on the next regulation change and are now your competition.
“Oh come on Christine, rules are meant to be broken.” Sure, go ahead and be that motivating rebel to break some rules, just don’t hate the man when a new regulation comes into play. Still with me?
Quite the contrary, you are perhaps the opposite of your co-investor, where you do care. You do want to invest wisely, support the local community, get involved in change, all the things; you may or may not be more likely to get run over by those with, let’s face it, an ego they let lead their investment. It’s not your fault, it’s not even those who don’t care as much as you do fault, It’s the combination of all of the above. The point is, that there are many hands in the pot, stirring up politics, emotions, ethical stances, wanting to simply make a living, support the economy, etc etc. I could go on and on here. At the end of the day, remember all of the moving parts are taken into consideration when regulations change for the 100th time. Remember that saying, ‘all it takes is one bad apple”, well it’s true. Just like anything else in life, we all want to be a rebel and relish in our egos a bit. Heck, I do too with some things. But this story is not about me, it’s a story for you to consider when investing in short-term rentals and for you not to put hatred energy towards the “man”, aka, STR regulation change. Take a breath, you are human, and we all are doing the best we can. Or are we?