Short-Term Rentals Find an Ally in Build-For-Rent Developers
Photo Caption: A short-term rental building by Norhart in Minnesota. Source: Norhart
Skift Take
Built-for-rent projects get a lot of hype, and sure, they suit the socio-economic environment of a tight housing market and a renter-friendly one. But worries about growing inequalities and elusive home ownership persist.
A housing shortage, rising home prices and prohibitive interest rates are putting a spanner, or a wrench, in the housing market. But, as a result, the ease of renting over home-ownership is making developers of build-to-rent projects an ally to the short-term rental industry.
What’s in it for these developers? A stable revenue stream via rentals and a possible chance to get regulators off their backs.
“There is a lot of interest among investors for real estate meant for short-term rentals,” said Dustin Abney, chief executive officer at Portoro, a property management company for premium vacation rentals. “And when they look to invest, they want purpose-built homes. There are cases where communities in South florida have been re-zoned to have short-term rental protections.”
He also pointed to another example where in La Quinta, California the city council approved for a community called Polo Villas to be zoned as short-term vacation rentals.
