In this episode of the DownbeachBUZZ Real Estate webcast, we discuss disruptive activity that could be happening within the short-term rental (STR) industry.
Some STR properties have clear, dangerous issues with their structure. ex: Ventnor STR with dangerous deck (see below) is same property involved in a New Years Eve shooting where 100 people were ringing in the new year.
Many towns still struggle with enforcement. It’s not easy finding qualified inspectors.
Some STR operators may not be properly insured. Most of these STR properties must secure more costly, commercial insurance.
Some STR operators may have borrowed money for a primary or secondary home, not a commercial property.
Many towns across the US clamping down on STR’s.
7 night rental minimums are standard, but Ventnor has opted for a poorly enforced, 3 night rental minimum. Atlantic City has no rental minimums. Brigantine has poorly enforced 2 night minimum.
Some Jersey shore officials (Mayor Landgraf of Ventnor) admit that STR’s are technically a ‘commercial business’ operating within a residential zone. This non-compliance with local zoning law could lead to litigation similar to what Brigantine is facing now.
Start litigations over zoning ordinance. Sue and have these towns reverse course. Create consistent law for minimum no. of days and make them a business. Want to be a hotel then be treated like one. There are plenty of lawyers on this island.
It doesn’t matter what the rules are if there is no monitoring and enforcement.