Short-term vacation rentals are a great source of income for homeowners in Santa Cruz. However, the city council is starting to crack down on many properties that don’t necessarily follow all the rules and regulations for short-term vacation rentals. Although the industry for vacation rentals is not largely regulated, changes could be on the way that could make a big difference to your vacation rental property.
Here are some tips for setting up a legal vacation rental in your home:
Do the Proper Research
Before renting your vacation property, it’s important to do the proper research and determine if you are allowed to rent it out. Check with the city and county codes for any notices on short-term vacation rentals. A good way to do this is by simply calling the city’s main office and speaking to someone about it. Other things to consider are restrictions in your mortgage that prohibit rentals or strict housing associations that do not want renters in the area. If you currently do not own your property and are yourself a renter, there will most definitely be restrictions in your lease about subletting. Make sure all of these avenues are explored before considering turning your property into a short-term vacation rental.
Apply for a Permit
Rental permits are required in all cities across the country. Depending on the type of rental you are planning to offer, the process for applying can be simple or extensive. In many cases, you will require inspections, notification letters, and more. If you’re planning to start a quick rental, keep in mind that the permit process can sometimes take a while so give yourself lots of time and make sure you keep detailed records of expenses for your taxes.
Obtain the Proper Insurance
Landlord insurance is required for all landlords who rent their property. Call your insurance company and find out if your current coverage is substantial enough or if you require an additional policy or more coverage. In many cases, most insurance companies will cover infrequent short-term rentals, however, if this is something you plan to offer continuously, you may need additional coverage.
Working with a reputable property management company and making sure to draft a detailed rental agreement are all things that should come after you go about the legal means to set up your property. Listing the property online with reputable services, investing in safety features such as smoke detectors and carbon monoxide detectors, and setting some ground rules for potential tenants are also important steps. However, making sure your property is a legal vacation rental will save you headaches in the future.
For more information on legal vacation rentals or buying a home in Santa Cruz, call My Santa Cruz Real Estate at 800-226-4717 today.