The latest trend in investments is seeing ordinary people turn to short term rentals as a means of contributing the extra earnings to a savings or retirement plan. If you are in the market looking to purchase the ideal little property with the hopes of leasing it out to make an extra income, you may not understand the significance of having an expert at your side to advise you. More knowledgeable proprietors will thus enlist the services of a real estate lawyer. Your attorney will ensure that you not only get what you want out of the property, but that it is all done above board by meeting local and state requirements.
There are legal limitations with regard to short term rentals, especially when using online rental services. These limitations include the nature of your home, the area where your home is located as well as the duration of the short-term rental agreement. If you are merely renting your home, then lease restrictions can apply and are dependent on your lease agreement.
Types of Restrictions:
Remember, legal restrictions regarding rentals are not created equal and can be confusing to a prospective buyer or lessee.
Short term rental regulations differ in various cities and municipalities. In certain cities, the restrictions are harsh and an infraction of local regulation can result in a hefty penalty payable to the city for the infraction. Unless you run a licensed hospitality business such as a bed and breakfast or hotel, you are subject to the rules and regulations regarding short term rentals in your municipality. Other municipalities are much more lenient provided you register within the municipality and pay the relevant fees and taxes.
Depending on where you live, you may be subject to deed- restrictions or Homeowner or condominium association bylaws, especially if you live in a cooperative, condo or planned development. These restrictions are typically enforced by the homeowners’ association. Depending on the bylaws, short term rentals may be subject to restrictions or barred completely.
As a tenant, it is vital that you check your rental agreement before signing the contract. More often than not, it may contain regulations that prohibit subletting, assigning your lease or other short-term rentals. Violation of your rental agreement could ensure that you are evicted from the property and the lessor will have the legal right to do so. Depending on your agreement, you may require the lessor’s permission to sublet and you need to ensure that approval is given in writing.
By enlisting the services of a real estate attorney, you will have someone to advise you on the best possible course of action if you wish to rent your property short term. When it comes to subletting a property, having legal assistance to oversee the agreement between lessor and lessee, just ensures that you are protected if your lessor retracts his permission in order to evict you. By having a person that is knowledgeable about all aspects of property law to review and negotiate your rental or purchase agreement, before you sign any form of contractual agreement, is only in your best interest.