In sought-after neighborhoods near popular destinations, investors have achieved returns 30 and 40 percent higher than those earned by leasing to long-term residents.
Of course, with already low vacancy rates leading to housing shortages, and large amounts of tax revenue generated by area hotels, this trend toward vacation rentals has not come without pushback from a number of city governments. In fact, many local suburbs have passed ordinances either restricting or banning short-term rentals entirely.
If you’re considering buying a property that is either already a short-term rental, or you would like to operate under that model, narrowing the geographic search is challenging. Investors needed to either call each individual city under consideration, or hope to find a free Internet resource that provided a master list.
Below are a list of cities in the seven-county metro area and their restrictions on short-term rentals. As always, you should call the planning and zoning department in each individual city before buying a property. Many of the cities contacted did state city councils were discussing imposing restrictions on the short-term rental market.