Airbnb, VRBO, Short-Term Rentals: Recent Developments, Enforcement Hurdles, and Mitigating Risks

Description

The number of people working from home continues to trend upward, and experts predict that 36.2 million U.S. employees will work remotely by 2025. Many remote workers are "digital nomads" or workers who can live and work from anywhere, including global locations. They are increasingly using Airbnb, VRBO, and other STR arrangements for "work-cation" purposes. In addition to STRs as a travel option, purchasing and leasing real property with adequate space for an STR or solely leasing STR property for investment purposes has gained momentum.

As the STR trend continues, many stakeholders find laws, regulations, zoning, taxes, insurance, and other liability concerns are more than they bargained for in many circumstances. Also, condos, coops, or planned developments often have bylaws or CC&Rs on the use of STR property. As technology continues to expand, like AI and data mining, states and cities increasingly monitor the STR industry not only from an enforcement standpoint but as a means of generating revenue for schools, tourism, infrastructure, and other essential services for the communities where the property is located.

Besides Airbnb and VRBO, one trending STR market endeavor is to provide properties through rental websites that allow cannabis use on properties. However, even as new cannabis laws take effect across the country, many states strictly limit the number of issued hospitality licenses for STR purposes as well as other location restrictions, zoning, municipal ordinances, and liability concerns.

Listen as our authoritative panel of real estate attorneys offers best practices for mitigating risks such as forming an LLC to purchase real property for STR purposes, safety policies, adequate insurance coverage, and other proactive measures.