Lately, I’ve had several clients ask about purchasing a home and advertising it for rent as a vacation rental property. The big question I am asked is “Where in Southern Utah can this be done legally?” Few cities allow nightly rentals, and there are only a few neighborhoods where nightly rentals are legal.
Vacation or nightly rentals are becoming ever more popular as travelers are seeking alternatives to traditional hotels. Often, it can be less expensive for a family to rent a house or a condo for a few nights than to get hotel rooms for the same period. Renting a place with a kitchen, and eating in can also alleviate the cost of restaurants. On more than one occasion, I’ve rented a condo or a home for my family, and we loved it every time! Websites like VRBO.com (Vacation Rental By Owner) and HomeAway.com have boomed in popularity in recent years, and investors are paying attention. Recognizing that huge returns can be made renting a property on a nightly basis, innovative investors are realizing significant returns on their investments. As demand for nightly rental properties increases, investors are finding it difficult to locate these properties, as they are highly restricted in most cities. The nightly rental concept is relatively new and was born along with the Internet. Many cities have ordinances or laws that restrict the rental of residential properties to a minimum of 30 days, and don’t even contemplate the possibility of nightly rentals.