Awwww – It’s happening to the short term rental market now!
It happened to eBay and Amazon … but they survived… and thrived.
It’s now happening to Airbnb. A short term rental platform.
Will Airbnb survive?
Airbnb helps you rent out space… any space. You can rent out a furnished dwelling, a boat cabin, garages, or even the inside of your car.
Regulating this relatively new phenomenon is part of mainstreaming. It’s not something that should be feared.
Sacramento’s Proposed Short-Term Rental Amendment
Locally, here in Sacramento, there is a short term rental amendment before the city council. The amendment is in response to Airbnb’s exploding popularity.
The “clarification” seeks to balance concerns with opportunities. And, in my option, Sacramento got it right.
Click on the picture to get a blown up view of my flowchart that summarizes Sacramento’s proposed short-term rental amendment.
Why Its Good for Landlords?
Sacramento got it right. Sacramento’s proposed short-term ordinance works for landlords because:
1 – It requires short term rental providers to get permits. And the process involves notifying property owners within 200 feet of the activity. So you will be notified if your compliant tenants apply to list their homes.
2 – You’ll be notified if a neighboring landlord/resident is Aibnb’g their dwelling. There’s always one bad apple. This ordinance will create a mechanism for correcting the situation.
3 – You, as a landlord, maintain your capacity to list your rental via Airbnb. However the number of days will be capped at 90 per calendar year (unless the dwelling is your primary residence).
4 – You need not deal with these new requirements if the rental term is for 30 days or more. This creates a world or opportunities for owners that cater to travelers more than tourist.
5 – You should face less “legitimate” competition; not everyone will be willing to do the extra paperwork.
Your Next Steps
Local laws are changing all over the nation and the demand for short-term rentals is changing too. The demand for on-demand, short-term rentals is growing exponentially. That’s the big picture.
To not miss the boat, you should:
1 – Review your city’s short term rental ordinances to understand your opportunities. Diagramming it will be a HUGE benefit to you; it’ll help you identify loopholes. Enroll in my eCourse if you want help with this.
2- Estimate if your rental, or part of your rental, could be significantly more profitable if rented short-term or on-demand.
3- If you move forward as short term rental, make sure you’re operating at optimal efficiency. Your goal is to be MORE PROFITABLE than a traditional landlord to justify your efforts. Check out my eCourse, Airbnb for Landlords. It helps you tap your full short-term profit potential.
For more information on how to maximize your profits with Airbnb, read some of my other articles such as The Overwhelming Benefits of Airbnb Long Term Rentals, Airbnb Tips for Landlords, and look over my Landlord Resources.