The demand for short-term rentals in Anne Arundel reflects the rise in several other regions globally. Anne Arundel County boasts of historic places. The historical places draw people to travel down to see and have a wonderful tourism experience in the county. This has contributed to an increase in demand for short-term rentals. While this may seem like a goldmine to investors, you must understand the rules and legal conducts that accompany short-term rentals in Anne Arundel. If you do not want to handle the stress of rentals, you can hire an Anne Arundel County property management company. However, this article will delve into restrictions on short-term rentals and considerations for property owners that every investor in Anne Arundel should know.
Understanding Short-Term Rentals
Short-term rentals encompass a wide range of properties that tend to the needs of travelers and tourists. Examples of these rental properties include apartments, houses, and condominiums. The target audience for this kind of investment is two groups. The first group is the budget-friendly traveler, while the second group is the luxurious tourists who want to enjoy their stay properly. As an investor, if you can afford to build properties that will cater to the needs of both groups, you are on the right path to success. If you cannot afford to satisfy both groups effectively, it is advisable to niche down.
Regulations Governing Short-Term Rentals in Anne Arundel
Online platforms like Airbnb and Vrbo have made short-term rentals even more effective in recent years. Nonetheless, counties like Anne Arundel have laws that guide short-term rentals, irrespective of how easy technology has made it. The law encompasses zoning, taxation, licensing, and safety standards that all investors must know.
● Zoning Laws
One common thing all property management companies in Anne Arundel are aware of is that there are some areas in Anne Arundel where you cannot have short-term rentals. It is not commonly known among investors. Hence, some investors build short-term rental properties and have their properties destroyed by law enforcers. Zoning laws mostly apply to highly dense residential areas. It is a means of keeping the inhabitants of the area safe.
● Licensing and Registration
As a property owner, you must obtain a license from the Anne Arundel property regulatory bodies before owning a functioning short-term rental. Obtaining this license involves fees and signed papers that ensure you will adhere to the rules and regulations concerning short-term rentals. You must also report any suspicious activity of any traveler renting your property; otherwise, if bad situations arise, you will also be a suspect.
● Taxation and Fee Obligation
As mentioned earlier, you must pay certain fees to obtain your license. Maintaining that license to own a short-term rental property will require paying taxes. Failure to pay these taxes will lead to cancellation of your license. Eventually, it leads to investors’ inability to carry out their rental services.
Conclusion
Investing in short-term rentals is like two sides of a coin. If done properly, you will make a good profit. If done against the rules of Anne Arundel County, the consequences may not be easy to bear. Therefore, consider whether your property will be eligible for short-term rentals before investing in short-term rentals. Also, ensure that you place occupancy limits. This will prevent overpopulation of your property and reduce the risk of property damage. And if things seem like you can no longer handle them on your own, you can always hire property management companies in Anne Arundel.
