Incline Village real estate: You can’t always rent what you own
Special to the Sun-Bonanza
Weekly real estate update
Statistics gathered from the Incline Village MLS on 5/22/16
Houses Condos PUDs
YTD Sales 2016 51 60 13
YTD Sales 2015 40 65 15
New Listings 16
In Escrow 8
Closed Escrow 6
Range in Escrow $338,000 - $6,900,000
The vast majority of buyers of Incline Village and Crystal Bay real estate have their primary residence somewhere else.
Since most real estate purchases here are discretionary and involve a vacation home, very often consideration is given to the possibility of earning rental revenue to help offset expenses. While searching for that dream vacation home, one factor that many buyers take into consideration is whether or not to do short term rentals.
The first priority is to perform some due diligence and learn if there are any restrictions on your ability to do vacation rentals. When it comes to single-family homes in Incline Village and Crystal Bay, you can generally do vacation rentals because you have complete control of the property.
There are some communities at Lake Tahoe that have restrictions on renting houses on a short term basis, but for the purposes of this article we are only talking about Incline Village and Crystal Bay.
However, properties that are part of a homeowners association sometimes have rules and restrictions pertaining to vacation rentals and short-term occupancy.
Several homeowners associations in Incline Village and Crystal Bay prohibit the renting of a property for less than 30 days and in some cases the minimum is 6 months.
This type of restriction would pretty much preclude doing any type of vacation rentals unless your customers are willing to rent your place for an entire 30 day period or longer.
When it comes to purchasing a single-family home and doing vacation rentals there are a number of factors to consider. Location is critical since most renters do not want to be more than 2 miles from the beach unless they are getting a spectacular lake view or some very special amenities at the property.
Having a good floor plan that provides a large space for entertaining but also separate areas for kids and parents to enjoy themselves is a real benefit. Features such as a lake view, big deck, hot tub, game room or pool table, outdoor space for kids to play, easy driveway access with lots of parking, etc. will make renting easier and bring in a lot more repeat business.
Just because you personally like the location or the floor plan of a house does not mean that the property will work as a vacation rental. Is the kitchen big enough to handle the traffic flow and several people doing food preparation at the same time? Is there a lot of road noise or a relentlessly barking dog next door that makes it impossible to enjoy the peacefulness of the Tahoe environment?
You have to weigh all of the intangibles and put yourself in the mindset of a vacation renter; if you rented this place for a weekend would you want to come back here?
If earning vacation rental income is a consideration, while looking for properties at Lake Tahoe make sure that you and your agent dig deeply and research each property you are considering as thoroughly as possible. Some properties make great vacation homes but will not work as vacation rentals for one reason or another.
Doing your research before writing an offer will save a lot of time and aggravation. There is no sense trying to negotiate the purchase of a property if there are limitations that will preclude your dreams from being realized.
Don Kanare and Sabrina Belleci are the owners of RE/MAX North Lake. Read their blog and find weekly stats on their website at http://www.InsideIncline.com.