Restrictions to Short Term Rentals and Why We Need to Abide by Them
But with the use of Property Guard, you can rest assured knowing all your compliance concerns are covered! Your properties are monitored and handled systematically with information, and data returned to you quickly. Our team has spent years developing a state-of-the-art AI tool that keeps all of your rental responsibilities coordinated, so our clients are always on “in the know”!
A property manager has many responsibilities for each of their properties. You have to preserve and maintain the property, screen tenants, move residents in and out, and ensure protective measures are in place. Renting your residence is like any business, and you will have long-term success and quicker turn-around if your property is well maintained.
The use of rental data and analytics tools for tracking rentals help make property rentals more manageable. Property Guard works for you 24/7 by tracking the ins and outs of the properties you manage.
Property Guard will help you ensure your short term rental restrictions are enforced, and the property you oversee is protected from any possible fines, issues, and other unanticipated events. Property guard was created by property managers for property managers, so we understand the importance of adhering to short term rental compliance policies. The last thing you want to encounter is unexpected violations because a host decided to rent their unit with hopes of generating extra cash flow.
But how can Property Guard keep track of everything for you? Short term rentals are listed on various websites. This makes compliance monitoring challenging and time-consuming. Trying to review listings manually can increase the margin for error and waste considerable time.
Short Term Rental Analysis
Property Guard has a proprietary artificial intelligence tool called Talos, built to learn and adapt to the dynamics of the rental marketplace. Talos helps provide useful data, analytics, and information quickly, and its regularly being updated.
Short Term Rentals
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Our full-service package ensures that each positive match is being validated by a member of our team.
After looking at hundreds of thousands of listings we’ve become experts in knowing what to look for to ensure you are getting the most accurate information.
How does the AI Work?
Talos is designed to scan through thousands of listings and provide you with matches based on the information you’ve provided. To take it one step further, the positive results are reviewed by a member of our team to check for validity and ensure the information is accurate to continue to provide the highest levels of precision in the short term rental compliance space.
Talos crawls thousands of short term listings on an hourly basis, far more than humans can process in a week or more. Many complex evaluations, leveraging different machine learning algorithms, are working constantly to provide the most complete visibility possible in the industry. All the information and results are presented in an easy to use dashboard, and notifications are sent directly to your inbox.
We know Property managers wear multiple hats, things can easily slip through the cracks, and with several platforms and hosts, you are able to have properties monitored within minutes! Property Guard helps fill all your voids to protect you from compliance issues!
Compliance with Short Term Rental Ordinances
Short term rentals have become popular in the past few years, and in 2019, 50% of travelers preferred short term rentals to regular accommodations. With a short term rental, hosts rent out their home, private room, or apartment for less than 31 days. This is one way for homeowners to generate revenue from their homes when they are not occupied – especially vacation homes. Short term rentals are more prevalent in places where there aren’t many hotels or motels. These homes are furnished and often have amenities similar to a hotel. Due to its popularity, certain jurisdictions have started to control the spread of short term rentals by enforcing short term rental restrictions or short term rental ordinances.
Generally, property managers need to sort through property listings to identify which ones are non-compliant. We know this is impractical and time-consuming, so we wanted to make things easier! Property Guard can help with your day-to-day monitoring so you can focus more on managing your property. After our software searches through the hundreds of thousands of listings to identify positive matches, it runs through the verification process to align the criteria you have set. If there is a match, you will receive a notification on which listings need to be reviewed to comply with the rental ordinances.
Short term rental ordinances vary depending on location. As mentioned previously, this can be confusing if you are managing a portfolio of properties. These ordinances and/or laws are in place to limit the use of of short term rentals and to ensure local governments are receiving proper tax dollars and permitting fees. Property Guard makes it easy to monitor and control short term rentals so any non-compliant properties within the state or city ordinances can be identified and corrected.
Let’s take New York, for example. New York is one of the biggest tourist destinations and has laws in place that limit the spread of short term rentals. It is illegal to rent out an entire apartment for less than 30 days, even if you live in the building – or own it! If you rent out your apartment for less than 30 days, you are required to be present during your guests’ stay. You are also not allowed to advertise short term rentals. Fines range from $1,000 to $7,500.
Washington, D.C. has high tourist traffic, and they too have laws that limit the spread of short term rentals. In DC, you need a license for your short term rentals. It also requires you to be a permanent resident. You can only be absent from your homestead a total of 90 nights each year.
In San Francisco, you have to register as a business if you want to rent out your place. Hosts can only be absent for 90 days throughout the year. There is also a license fee to be paid and taxes due for all hosts within San Francisco.
Los Angeles is another popular tourist destination. Hosts who want to get into short term rentals have to acquire a license. Moreover, the property must be rented out for more than 120 days for a year. There are also taxes to be paid.
The Windy City has laws to prevent short term rentals to reduce market availability. The rental license can cost up to $250. If you have one unit to rent, you can register it on a rental platform. If you have more than one unit, you will also need to acquire a license. Chicago also imposes a hotel accommodation tax, and the fines for violators range from $1,500 to $3,000 per day.
In Seattle, there is a license fee of $75 to operate short term rentals. Hosts are required to register as a business and are only limited to operating two units at a given time. Violators with properties in Seattle can be fined $500 to $1000.
Boston, Massachusetts is another top destination. This city’s license fee will range from $25 to $200, plus an additional hotel tax. The rental must be the primary residence of the host. Non-compliance in Boston can cost you $100 to $300 per day.
These are only a few laws of short term rentals for some of the more frequently visited states. Each state has a different set of rules, regulations, and corresponding fines when violated. The above are only examples. Because compliance may differ depending on location, always remember to check your local laws. There are new laws implemented at any given time, making it easy for them to slip through the cracks. This is why having a short term monitoring solution can help you become more aware of these changes so you can manage, monitor, and track your properties without the worry of being penalized for violations.
Common Laws for Short Term Rentals
Although there are often different laws in each city, state, and municipality, there are common laws for short term rentals that all managers should know.
First of all, know the short term rental regulations in your community and local city. Spaces in your community may or may not qualify as a short term rental, so it’s imperative to learn about the regulations set. Next, thoroughly review all laws regarding guest requirements, duration, and stay. Some areas will require more documentation than others, such as only allowing the guest to stay for a maximum of 30 days; after which, it is considered as a traditional rental and you must draw up a lease agreement. There may also be restrictions on how often a property can be rented in a geographical location or in a given period of time.
Documentation is a part of the short term rental business. You may have to register with the state regarding your rental home and obtain the proper permits and/or licenses. Given that you are also earning income from the rental, you may need to file and pay taxes depending on the law.
Property Guard can help in providing a turn-key monitoring solution for these properties you are managing. We can assist in the best practices, what steps to take, and help with documentation that must be completed and submitted.
Avoiding Illegal Short-Term Rentals
Some cities and communities do not allow any short term rentals at all. Some require permits and licenses, others outright banned. If there is illegal activity or non-compliance, then the fines can be imposed. It can be a problem to monitor these properties and lead to bad reviews and more expensive maintenance costs. Short term rental monitoring software such as Property Guard can make monitoring easier and more convenient.
Short Term Rentals in HOA
When you have properties in a condominium or homeowner’s associations, their rules and regulations can be more strict than local city requirements. Some may permit short term rentals, while others will not.
All HOAs handle short-term rentals differently, so it’s important to understand your community’s requirements. Since short term rentals need management and planning, there are additional rules that owners and tenants have to follow.
This is where a violation tracker comes in. Having this tracker solution is essential in order to stay updated for the properties you manage. This tool will record and monitor any HOA violations related to short term rentals and guide you through the compliance process. This feature gives the manager the data to enforce fines and take other steps as necessary.
Keeping everything in one place is convenient for when a dispute arises. The tracker records all issues and saves them for future reference. If you want to access the data, you can simply type in the date and time for the most current results. The tracker will also help you find owners who are open to sublet and which units are occupied.
As former property managers, we know how short term rental can impact your business both positively and negatively. We used our industry experience to create an effective and straightforward to use tool for short term rental monitoring. Our team runs regular software updates and continues to improve our features for your convivence.
Property Guard is known for being accurate, lighting fast, safe, and secure. As a reliable technology company and reputable source for rental compliance, our team develops software solutions specifically for professionals managing short term rentals. We’re always improving our systems to make management more efficient for our clients.
We guarantee to provide the best quality tracking and responses, and our operation is 24/7. No matter what issues you encounter, we promise to have your properties monitored for compliance! Allow our team to help you get started today and harness our technology and AI tools – at your fingertips! In only a matter of minutes, you will have results in seconds!