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Understanding Airbnb Regulations In Your Area

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Regulations sometimes aren’t talked about enough. People either forget about them completely or they worry about them after they’ve got a home under contract. But with the right information, investing never has to be scary.


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We talk to and work with a lot of short term rental investors. For investors who are paying attention, they share a concern for short term rental regulations in an area.

And rightly so.

What happens when you pick the wrong area and they switch regulations on you? You could be forced to switch strategy or sell the property.

And are short term rental regulations getting worse? Are they getting too strict to invest?

Absolutely not.

There are regulations in anything. Even long term rentals have regulations that can be changed.

So how does an investor or host choose a market based on regulations?

In the video, I break the markets into tiers. There are three main tiers of markets as it relates to regulations.

First, we go over the markets with heavy regulation. I share the exact regulations that, if I see them, I will not invest there.

Next, we go over the markets with no regulation. Sometimes investors and property managers pick markets with no regulation thinking they can do what they want.

Unfortunately, regulation is good. Long term rental markets have regulations. Every type of business has regulation.

When you don’t, you risk the rug getting pulled out from under you.

And finally, I share the handful of parameters I look for in an ideal market.

At the end, I give you some tips on finding the regulation for your area.

If you’re in the market to invest in short term rentals or start a property management company, this video is a must-watch.


What's up guys, it's James here. And in today's video, I want to talk about understanding and optimizing for Airbnb regulations. So whether you are investing in properties for short term rental, or you're managing properties on Airbnb, or you're just hosting, I want to talk about how you can better understand the regulations in either your area, or the area that you're looking to start investing or managing properties in, and how you can pick the best area. from a regulatory standpoint, I'm gonna give you everything I've learned about this space, which I think honestly, too few people talk about this space is the one area of short term rentals that I don't think enough people are out there really talking about anything is really important, whether you're investing or you're building a business, and you're investing your time and energy into doing so you are making an investment into this space, whether you're building that business or actually buying properties. And you want to make that investment in a space where it's going to pay off the best and be at the least risk. And so regulation is an important piece to consider when you're thinking about that. So that's what we're gonna be talking about in today's video, and I'm gonna give you my tips, everything I've learned over the last six or so years, that I've been managing and investing in properties for short term rental, and how you can do it the best, most effective and safest way possible. And before we dive into all that, I do just want to remind you guys that are some free trainings that are linked in description down below. So whether you do want to start managing properties, and you want to build a six figure income, managing other people's properties on short term rental without having to buy rent, or furnish any properties, or put any money into the properties upfront at all. So if that's what you want to do, there is a free training that's linked in the description down below. Like I said, that's how I got started and built that six figure business managing other people's properties on Airbnb. So if you want to learn how I did that, and how you can do the same thing, then just check out that link in the description down below. If you're wanting to invest in properties for Airbnb, if you're here because you're thinking about buying a short term rental, vacation, rental, and Airbnb. And then again, there's a free training that's linked down in description down below, because that's what I then have evolved things into. And I've started now investing property in properties for Airbnb and actually buying the properties. It's a really fantastic way to build cashflow, and long term wealth. We've got other videos on this channel, highlighting how well the property's have done, and how highly recommended and all kinds of ins and outs. So if you want our step by step training for exactly how to succeed investing in short term rentals that, again, is linked in the description down below. And once you sign up for either one of those trainings, we're also going to give you some free analysis and projection tools that you can use for helping you to grow either your business or your investment portfolio. So those tools are going to be given to you completely free. So again, I highly recommend you leverage those strengths are in the scription down below so you can avoid mistakes and run things in the best possible way. All that being said, let's get into regulations. Let's start talking about it. So my recommendation for regulations is they're sort of the way I look at it, there's tears of areas that you want to invest in based on the regulation there. So the worst possible place, obviously, to invest in properties, whether that's investing your money into buying them, or investing your time into building a property management business is going to be an area where short term rentals are either banned or heavily restricted. Now this should go without saying but I actually get people reaching out to me relatively frequently asking, Hey, James, what do you think? You know, I live in New York City, let's say and there's, you know, a ban on Airbnb ease, but there's so many listings out there, should I start managing properties in New York City? Well, my answer is always no, I don't recommend breaking the law obviously can't advocate for that. But even more important than that is I don't think it makes sense to build a house of cards. You know, especially in an area like New York, where for example, on all the outskirts around New York, there's such a lucrative short term rental industry. For people that are getting away during a staycation you can earn absolute killing without having to build a sort of House of Cards, that regulations could tumble to the ground at any moment. So not amount of risk is not worth taking on. Also, if there is just an area that's heavily restrictive of short term rentals, I generally recommend shying away from that, because it just makes your business or your portfolio more complicated than it needs to be. So again, I just recommend shying away from there. Now the next kind of I was call us a little bit of a mystery box is those areas that don't have any regulations for short term rental. Now these can be good areas to get started in. But I like to just kind of think about things a little bit before I do. So there's a few things I consider one of them being is there talk of short term rental regulation in that area. If yes, then what is the general sentiment in the area? If not, then okay, let's kind of think about some other things. The other thing I like to look at is what is the short term rental market like in that area is the area highly dependent on short term rentals. And this is going to be kind of in the next category as well as I really love to invest either my time or my money into areas where they have an actual dependence the local economy there has a dependency on short term rentals. So a lot of these more rural areas outside of the main urban centers where there's a lot of Tourism that drives local businesses there and that they don't have a whole bunch of massive hotel chains, those areas can be real goldmine. Because number one, you're dealing with less competition, a lot of demand because you don't have hotels in that area. But also it's a it's a fundamental part of the economy. And so if it's a fundamental part of the economy, good chances are that even if they're not regulated right now, if there is regulation in the future, it's likely going to be quite favorable to them, because the economy needs it to thrive. And then the best category of areas to invest in or whether it's buying properties, or building a property management company, is, in my opinion, to buy or invest your time into areas that already have some established short term rental regulations. And these can be any kind of different regulations, but regulations that are favorable to short term rentals. And ideally, this is really kind of the Holy Grail, an area that the local economy actually depends on short term rental. So again, looking for in most cases, those more rural areas that don't have a large hotel presence. So there's a real dependency on the tourism industry, that short term rental industry support in that area. So those tend to be really strong areas, because you know, they've already made up their minds. And if in the future, they do decide to change their minds about short term rental, it's likely to be nothing major, it's likely to be a lot more minor and not negatively impactful on either your business or your investment portfolio. So those are the things I like to look out for in terms of the actual specific regulations that I tend to shy away from, I tend to shy away from obviously bands, I tend to shy away from night caps. If there are if they're registering properties, and they're taxing properties. I'm all for it. I think that industries or markets, I should say where they regulate, they put some rules and restrictions that are manageable, that aren't night tasked with just sort of dictate how you can operate your short term rental in order to operate safely and effectively and where they're taxing short term rentals. That to me is a really great sign. Because it means that, hey, there's not a restriction on the operation, the short term rental property and so much as there's nothing that prohibits me from operating it in a way that's going to produce a much a profit, and the more money I make, the more money the government makes. So that's going to keep them very happy, you got to remember that if your incentives are aligned with the government, such as they are with tax, meaning that the more money you make, the more money the government makes, that's going to be a good thing, because it means that the government's incentives are aligned with yours means that they're going to be trying to act in a way it's going to optimize for more income and a lot of areas and that income is generated through tax, which is generally through you getting bookings. So there's a really nice symbiotic relationship there that honestly, I'm in supportive, I've also found that when areas do start to actually regulate and rein in short term rentals bit tends to weed out some of those bad actors. You know, there's a lot of times in major markets, there are people that are trying to cram 30 people into a property with two bathrooms. And that gives a bad reputation and space, there's a whole bunch of safety concerns there. And so we don't really want those actors, as long as you're not one of them, you don't really want those kind of actors in the market. So I found that regulations can be a really good thing when they're done properly. So that's what I tend to look for, again, licensing as well limiting the number of short term rentals, that's something you will want to look out for. And it's going to depend on the situation. So if there is a really strict limitation of you know, a very small number of short term rentals that are going to be allowed to get licensed and operate properly, versus a large number that is really manageable. Those are going to be two different situations. So you want to just kind of take it on a case by case basis. Now the best way to actually research regulations in your area is going to be to do a quick Google search and find the actual link on the government website that outlines the specific regulation, you can also just go directly to your government's website and search for the regulations. If they have a nice website, or as a last resort, you can also just call your local government office and ask them for the documentation. Now, it's really important that you either look at the actual government website and look at the documentation, or you get that documentation sent to you so that you can review it. And it's important that you review the actual documentation, because you want to actually get the real truth. You don't want someone's interpretation of the truth that you might get from a media website or a news website. And you also don't want the person the individual that you're talking with on the phone to be giving you their interpretation of what the regulation are, because oftentimes, that can be a misinterpretation. So you want to actually get the regulation, I know that it's a little bit tedious, a little bit time consuming to take, you know that 20 or 30 minutes to comb through and actually read and understand the regulation but trust me, it's not as complicated and intimidating as it seems. And it's gonna be really worth your while to fully understand the regulation so you can operate effectively and make the best decision for where you grow either your business or your portfolio. So those are all my thoughts. I'd love to hear yours in the comment section down below as well if you have any. Also make sure that you check out those free trainings that are linked down below. We talked about all this and more detail and then a whole bunch more. So whether you want to build your business or you want to build your portfolio, check out the free trainings that are linked in the description down below. They're going to be absolutely invaluable to you, they're going to go over all the different steps for how to do this really, really successfully. And so you can learn from my mistakes and not have to repeat them yourself and learn from my successes, so you can shortcut your path to them. So that's been really valuable to you. If it has been then make sure you hit that like button, give this video like it really helps me out tremendously when I'm growing this channel. So I love the support and I really appreciate you taking the time to quickly like this video. And lastly, make sure you subscribe to the channel. If you're not yet subscribed, we post two new videos every single week. And my goal is to provide as much practical insightful value to you as possible if you're interested in investing in or building a business in or hosting on Airbnb. So I highly recommend you subscribe to the channel if that's what you're looking to do. Stay up to date with the two new videos we post every single week. And with all that being said, I hope you enjoyed this video. I hope it delivered value to you and with that I will leave you I hope you have a great rest of your day and I'll see you in the next video.


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