We love to travel and stay in short-term rentals (STR), like Airbnb or Vrbo. I’m not sure if it is my excellent online vetting skills, or just plain luck, but we have always had a great experience. We have heard horror stories from movies on TV, but the only negative association we have had with Airbnb is the time our own neighbor decided to rent out her house during Covid using Airbnb. Our neighborhood turned from a quiet suburb to the hottest party hangout with over 400 people at the house and on the street. After a visit from 10 sheriff vehicles around midnight, lights, and loudspeakers the unwanted visitors left and our street returned to what it once was. 

It’s experiences like this that scare most homeowner’s about STR’s popping up in their neighborhoods. Santa Clarita currently has STR regulations that hosts need to follow including getting a permit, limits on parking, noise, and occupancy limits. However, the public opinion on STR’s is starting to shift for other reasons.

You might have heard that New York City has banned most STR’s. Many large cities across the world are considering similar bans.

The primary reason? Loss of housing units for residents.

If you have a portfolio of properties you've built up for the STR market, you will understandingly be upset if this happens to you. You'll need to either sell your properties or rent them long-term. If you were counting on STR income in your retirement, you’ll need to pull out your spreadsheet and refigure your plans around long-term tenants. If you own property in a city that hasn’t yet banned STRs, you’ll want to keep your eye on that ball.

From a community perspective, we can understand wanting fewer STRs and more long-term tenants around, as long as they're good tenants and landlords. However, absentee owners typically take excellent care of their STRs because of the ratings system on Airbnb and long-term landlords may not take the same care.

If the ban helps people buy more personal homes in those areas, then that’s a good thing for buyers, the community, and the remaining landlords, because rentals in owner-occupied neighborhoods are more valuable.  

While STRs offer a fantastic investment strategy, so does buying and holding long-term rental property. Have you been thinking about jumping into the STR market? We can help you in locating local rental property, or selling a STR. Give us a ring at 661-254-1650.