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Contingency Plan - Short Term Rental Bans

So with the recent news that NY (and other places) are trying to ban whole unit AirBnB rentals, it’s got me thinking of ways to skirt the law should the same thing happen where I am.

Hosting has gone so well that I have plans to expand my business by adding additional units on my property. With multiple rental units, I could very well register it as an actual lodging business, collect state lodging tax, etc.

This likely isn’t an option for many as they live in cities & towns where current and future zoning laws may prohibit running a business like this in a residential area.

What do you think and do you have a contingency strategy? Or will you just pill the plug should a ban be instituted in your area?

I sold my property that was not zoned correctly and bought properly zoned property.

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I can’t imagine a ban in my city anytime soon, but if one were implemented I would “pull the plug” except for any word of mouth business that might happen to come my way. Unlike many others here I am not dependent on this income.

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I just rent a room in my own place and and if airbnb will be banned I have no problem to find my own guests

A whole room in your house should not be considered the same as a full unit for rent. I bet this is going to really shake down some destinations hard!

In Los Angeles, the city council is considering limiting hosts who rent rooms in their houses to 90 days per year. As we live near UCLA, we are considering hosting students. Also, a lot of Chinese parents send their children to the US even for middle school. They like to have their children live with an American family to learn the language and the culture. We are also considering hosting them as we do depend on our Airbnb income.

@EllenN could you rent 90 or less during holidays/summer break when you have no students?

Students can really make great tenants. They are usually focused and by the time they are juniors and seniors very serious, as college is expensive.

Last year when I was attending alumni day at UCLA, they announced the university was now 100 percent residential. Quite the change from my day, where we students scrambled to find housing as every dorm had major waiting lists. I don’t know if they are required to live on campus now or just have the option to. Graduate students would be also good option for you. Your area was appealing for housing back in my day and I am sure it still is!

All I have to do is open a door on my side of the converted garage and it will be a private room but still have a private entrance. sort of like DC Moony has here.

Grad students and academics in general are excellent options. They’re often (usually?) careful considerate people who are busy working, are usually non-smokers and drink little if at all. And probably no drug use either.

Yes, we could, but with caveats. I’m hoping the legislation won’t go through as written as Airbnb is more profitable than longer term renting. Also, as I’ve posted on other threads, I’m concerned about longer term renters not paying and having to be evicted and/or paid a relocation fee. In Los Angeles, CA if a landlord evicts a long term tenant (over 30 days) in order to use the property for another commercial use, the landlord has to pay relocation fees to the tenant. If a long term tenant decided that they want to stay, I could possibly have to pay them more in relocation fees that I received in rent from them. Here is a link to information on relocation fees.

http://www.cesinaction.org/Portals/0/LA_Relocation_Assistance_2015-16.pdf

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