Local Township just enacted a $900/year permit requirement for short term rental. How can I get around this?

[Scott1358]

Local Township just enacted a $900/year permit requirement for short term rental. How can I get around this?

[Pat271]

@Scott1358  I love these posts in which people are trying to skirt their laws. Do you really think someone here is going to help you commit a crime? Just do the lawful things, with hosting and with all the rest of life’s activities..

Or is this just a troll post to begin with?

[Scott1358]

Not trying to commit a crime, just looking for suggestions. Some of the requirements seem to be aimed at preventing STR's. Even properties with full time residents don't have to meet these regulations. This will probably be the last straw, and I'll just sell it.

[Pat271]

@Scott1358  It doesn’t matter if the requirements are aimed at preventing STRs. It’s the law. If you don’t like the law, get involved with legislators in your local township to work on a more equitable law. Until then, obey it.

I’m sorry if I’m being harsh, but there is a lot of “the law isn’t fair, so I’m not going to follow it” going around, resulting in illegal rentals that taint the reputation of the rest of the hosting community.

[Scott1358]

I'm upset mainly because these requirements do not pertain to full time residents, nor to seasonal rentals, or to Section 8 housing.  The new ordinance also regulates minimum room size, septic capacity, and other parameters that would seem inane. Also, the $900 fee is due yearly, not just once. And they require annual inspections which we have to pay for. As if my septic tank is suddenly going to change size one day!

[Pat271]

@Scott1358  I feel your pain. In Maui where I have an STR, I pay almost 5x as much property taxes as full-time residents, 4x as much as long-term rentals and vacation homes. STRs even pay more than hotels. They also collect 17.42% in accommodations taxes from the guest. In Maui, this all comes to 10’s of thousands of dollars. The Maui County budget this year is over 1 Billion dollars for an island with 150,000 residents. No, I’m not kidding.

But…you either play the game or risk being shut down. Airbnb just got through removing 1600 illegal rentals from Maui. I would never try to skirt these laws.

However, if there is a legal way in your jurisdiction to lessen the burden, that’s another story, but this probably wouldn’t be the best forum that would be familiar with your local laws.

[Scott1358]

OK, thanks

My original intent was to see if anyone had fought these laws.

And what they did. New laws seem to focus strictly on AirBnB rentals. I view it as a money grab by the town.

[Helen3]

Dear God. No wonder hosts get a bad name . 

[Frances3408]

@Scott1358. Might be an opportunity to review your prices upwards? I think regulation of STRs is here to stay.

[Christine615]

You’re kidding, right?

[Andrea-and-Glenn0]

I’d just pay it and add it to my cost of doing business. Just another line item on the tax return I’m afraid. 

Pay it, divide it by the number of nights booked in the previous year (say you had 200 paid nights over the 365 days in a year) and add that to your daily rate. 

$900 divided by 200 equals $4.50 per night increase to break even. 

Cheers/Glenn