You Can’t Unchange What Has Been Changed
The configuration of the real estate market has undergone an intense redesign since Airbnb and VRBO have entered the marketplace. Hotels now are experimenting with Airbnb instead of the usual model of taking reservations through booking agents and through regular sign-ins.
Also, owners of rental properties have purchased investment properties in locations that attract tourists. Many towns, especially along the Jersey Shore, are having to deal with the rush to rent Airbnb’s along its desirable Gold Coast.
There’s still a boatload of change that can be made from Airbnb rentals. It was stated that Airbnb was responsible for 1/3 of the rental bookings in all of New York City. Agents are learning how to leverage this demand into commissions going into their pocketbooks. Many agents have convinced buyers that properties they’re interested in could be used to cover an entire mortgage payment if it needed to be. Airbnb appears to be the local investor’s way of covering the cost of the investment.
But all is not peaches and cream: many Airbnbs have introduced loud music, drinking and partying that continues all night long in neighborhoods that would otherwise be very quiet and sleepy. Some neighborhoods recently have been singled out, such as Brigantine, New Jersey. The absentee landlords have taken advantage of the demand for vacation rentals within residential neighborhoods.
New York City has passed a law effective September 5th, 2023 that introduces some of the strictest regulations in the US for the short-term rental market.
Now New York City is demanding that short-term rentals register with the city. This registration will involve complying with new and more rigorous requirements, which include not renting out an entire apartment or home or being present during the guests’ short-term stays.
When you consider there are approximately 38,500 Airbnb listings in New York City alone, this kind of presence produces revenues in the neighborhood of $85 million annually.
The way some New Jersey towns are cracking down on the Airbnb business is by requiring a minimum of a seven-night rental agreement, or in the case of Longport, New Jersey, which requires a 14-night minimum. Another criteria requires the individuals renting to be at least 25 years old and pass a criminal background check.
In the case of New York City, it’s most likely a grab for cash. But in the case of many of these New Jersey tourist towns, local residents are feeling the effects that this type of business arrangement attracts in terms of clients and behavior.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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