@Helsi @konacoconutz @Gardenhost @Zandra @EllenN @cabinhost @K9KarmaCasa @smtucker @jaquo
Ok, I see myself forced to explain better. It's not about dollar and dimes at all... If only it were...
Since we are considering buying an apartment, today we went to the municipality to inform about the exact regulations. We want to permanently live in the apartment ourselves, and rent out the remaining rooms (1 to 4).
It would be quite an investment and I would want to do everything by the rules to have legal certainty. To not loose money because all of a sudden we are not allowed to host anymore. I don't have problems with: paying taxes, respecting employees, matching the Hilton in quality and safety. So no problem at all one would think.
Today we learned that the, very touristy, district we are living in does not allow any short term hospitality service in an apartment. Even if it's your property and all the neighbors agree. They only allow B&B's with max. 5 rooms in one-family homes. We live in a district with a building code that on average allows between 7 and 19 floors, and prices of houses and land reflect this. So if we want to buy a property where we can legally BnB we would have to invest a small extra of $US 300.000,00 to $US 500.000,00. And in that case it will probably become more of a small hotel than a BnB.
Now the small detail is the following: Since this district is mainly apartments, probably about 97% of the current BnB's (> 1000 units?) are located inside an apartment and therefor in breach of the law.
And this got me thinking... Suppose we are able to buy a small house or a small lot that most of the investors deem worthless. We would have to invest extra, but we could work legally. What we wouldn't be able to do, is maintain the ridiculous low prices of illegal competitors. In that case what would I do? Since I am totally in doubt I wanted to know the opinions on this forum .
(BTW: Yes, we ourselves are breaching the law at the moment. I am aware of this, you don't have to call me out on it. This is our BnB trial period that required little investment and was just to see if we like it. The moment someone reports us, we can shut down within half an hour.)