When deciding how to rent your property, it really comes down to your situation as the homeowner as well as the property location. Choosing between options to rent as a vacation rental or full time rental can be a tough call. Thinking through some scenarios and gathering some important details can help you feel more confident in your decision.
Regarding location factors, many of the communities throughout the Adirondack region have implemented or are in progress on short term rental regulations. Many local communities have become overwhelmed with short-term rentals in recent years and local organizations are starting to take action to curb further growth. With this in mind, if you currently own a property or are looking to purchase a property to rent, checking in with the local townships on current regulations may determine what direction you take.
Choose Wisely – Rent As A Vacation Rental or Full Time Rental?
Long Term Renting
Our region of the Adirondacks includes Lake Placid, Saranac Lake, Wilmington, Keene. All of these communities and surrounding areas are hospitality and tourist driven, so long term rentals will always be needed to house the local workforce. A slight shortage of employees throughout the region has contributed to workers traveling to employment from farther distances.
The current high price of long term rentals in some of the communities contributes to more workers commuting in rather than residing in the community. Another contributing factor to employee housing challenges is the conversion from long term to short term rentals. While the conversion has been a lower percentage on apartments versus homes, it has adjusted the rental market enough to affect rent prices.
If you are considering long term renting apartments or your property, evaluate the community to figure out trends in the current rental market. Unfortunately, market prices in cities throughout New York will not match local Adirondack areas. Be sure to research the local rental market to figure out average renter salaries, property conditions and cost of services before moving forward on any plan.
When planning your long range property income goals, remember that long term renting does not offer a get rich quick opportunity. It is more of a long term investment that can require upgrading and consistent maintenance. Most rentals throughout the region fall between $700 and $1,500 a month based on size and what is included. While this is the average, it is possible to find some properties lower or higher.
Generally, lower priced rentals consist of an efficiency style unit that is older and may not include utilities. Higher priced units are typically larger, more modern, and may or may not include utilities depending on owner preferences. Keep these factors in mind when deciding to rent as a vacation rental or full time rental.
Short Term Renting
As stated above, short term renting can have its own unique challenges depending on what community you are in or looking to purchase in. Consider carefully when weighing your options to rent as a vacation rental or full time rental. Regulations can vary based on host status: hosted properties have an owner on site, while un-hosted rentals have an owner off site.
To give you an idea of current regulations, below are generalized short term rental regulations for a variety of communities. Please note that these are just an abridged outline of regulations. If you need more information to decide whether to rent as a vacation rental or full time rental, reach out to current local community development groups. Confirming what current regulations and rules are as well as how they have or will change can really inform your decision to rent as a vacation rental or full time rental.
Lake Placid
The Village of Lake Placid and Town of North Elba were the first community development groups to fully implement rules and regulations on short term rentals. Under the new regulations, most neighborhoods are prohibited from un-hosted short term rentals. These include the Hillcrest neighborhood and the neighborhood area behind and near the elementary school. Short term rental properties that were in place before regulations were enacted are grandfathered in, but will be removed from the inventory if the property sells or changes ownership.
The Lake Placid village center district does not have a limit on rentals, including properties from Main Street out to Cascade Road. Also, if the property is part of an HOA, the regulations are lessened. Other regions throughout Lake Placid have been zoned with caps on the total number of short term rentals. If you find a property or own a property in these areas, reach out to code enforcement/ community development to see what the current availability is on the zone. The Village of Lake Placid and Town of North Elba both require an application process renewable annually for a fee.
Saranac Lake
The Village of Saranac Lake is currently in a moratorium and not accepting any new short-term or vacation rentals while in the process of figuring out the final rules and regulations for the community. This moratorium is scheduled to end December 31st with a possibly of extension if rules and regulations have yet to be finalized at end date of moratorium. As it stands now, the village plans on capping the number of short term rentals by setting up zones for the various districts of the village that will be re-evaluated each year.
These zones will be capped and could adjust each year based on the current data and market. The Village of Saranac Lake is implementing stricter residency requirements for rentals where new applicants for short-term rental need to be residents or have an LLC where at least a 25% is owned by a local. The future of short-term rentals will require an application and a meeting with the development board for approval.
Harrietstown, located in parts of Saranac Lake and the outskirts, has discussed working on rules and regulations for short term rentals. The town has yet to implement anything at this point. This is something to keep an eye on, as it could change shortly after the Village of Saranac Lake finishes the moratorium with a finalized way forward.
Bloomingdale, NY and the Town of St. Armand both have permit processes requiring property owners to have an inspection by the code enforcement officer and practice safety and “good neighbor” policies. There is currently no cap on the amount of short term rentals, but this could change in the future.
Bloomingdale
Wilmington, NY also requires an application to short term rent a property. There is currently a waiting list. Wilmington set a cap of 150 properties that can be used for short term rentals. Other rules and requirements for short term rentals in this area focus on quality of life for local residents. Some of these regulations include noise ordinances like quiet hours, having enough room for parking and overall safety for renters and neighbors, including fireworks being prohibited.
Jay and Ausable Forks
Jay and Ausable Forks do not have local community rules and regulations yet, so they only require property owners to register with the local government and obtain a permit due to the taxes that the county will receive. Other regulations include the occupancy at the correct amount and following normal community ordinances that apply to all residents.
Keene and Keene Valley
Keene and Keene Valley have not implemented community rules and regulations, but there has been discussion on possibly changing this moving forward. They are currently doing a research phase to figure out the best way forward for short term renting policies. Regulations here are similar to Jay and Ausable where property owners register with the local government, obtain a permit, keep occupancy correct and follow any town ordinances.
Where to Get Help Deciding to Rent As A Vacation Rental or Full Time Rental
Research is key as you consider whether to rent as a vacation rental or a full time rental. In the end, the most important factor will be preferences of the homeowner and how they wish to be a part of the community. Some owners may want to live in a unit while renting out other units to help pay off the mortgage early, while others aim to gain income from a property they already own or investment property they hope to find.
Each owner must consider their own unique factors to determine which path is the correct one forward. Talking to a real estate agent who is well versed in the local market and STR regulations can really help you gain confidence in the decision making process when deciding whether to rent as a vacation rental or full time rental. If you are interested in finding a potential rental investment property or would like to start renting your property in a permitted area, contact one of our experienced agents today at (518) 523-3333.