Effect Of VRBO Next Door To Subject

[JEFFSMA]

ANYONE HAVE AN OPINION OR DATA ON EFFECT OF VRBO NEXT DOOR TO SUBJECT ON LONG ISLAND SOUND ORIENTED PROPERTY IN CT? CLIENT ADVISES THAT SHORT TERM RENTALS OF THE PROPERTY ARE A REAL HEADACHE WITH WEEKLONG PARTIES, NOISE, TRAFFIC, ETC.

 

[Fernando]

Reminds me of the owner who lived in his fourplex across the street from my rental. He was upset with tenant's short term rental.
I didn't really bothered me but really upset the owner since he lived there.
Maybe he didn't like his tenant "subleasing" or he didn't like strangers coming and going out in his building where he lives.

 

[TerryRohrer]

What is the purpose for the appraisal? Sounds like the client is lobbying for a low value.

 

[Fernando]

Did you check to see if VRBO next to subject has been a problem?
If reviewer checked and saw a problem with neighbors and you didn't disclose, it reflected badly in you doing your due diligence.

 

[Surf Cat]

One of the affluent beach cities in my market area outlawed VRBOs for your very reason.

The residents would be dragging going to work due to lack of sleep..... when they arrived home, they would see The Hungover crowd leaving and the excited new revelers arriving. Basically a continuous nightmare.

I assume you would have to find comparables with detrimental externalities to compare the subject to. Good luck.

 

[George Hatch]

I would never live in the beach zone or anywhere else the tourists might frequent.

 

[Artemis Fowl]

Son rented a place in Kalkaska for his bachelor party last year. He's blessed to have great friends so these are good boys and we weren't at all obnoxious...just a fun guy's weekend. It did get a little questionable after I made 3 gallons of chili but that's a different topic (FYI it wasn't enough). Anyways...first night we're all sitting around the fire and the neighbor ambles over. Hi I'm Big Steve and all the neighbors are pissed that this place is a short term rental. I'm here to intimidate you. Big Steve joined us for a few beers and laughs around the fire. He was terrible at intimidation...just sayin. His concerns about short term rentals were pretty valid IMO. All the long-term lake owners talk about it often and assume it lowers property values. The place we were staying at had just sold a few months earlier for more than any other property had on that part of the lake...so does that actual data support a decrease? Dunno. Would be curious what the buyer agents are hearing as they show properties.

 

[J Grant]

ANYONE HAVE AN OPINION OR DATA ON EFFECT OF VRBO NEXT DOOR TO SUBJECT ON LONG ISLAND SOUND ORIENTED PROPERTY IN CT? CLIENT ADVISES THAT SHORT TERM RENTALS OF THE PROPERTY ARE A REAL HEADACHE WITH WEEKLONG PARTIES, NOISE, TRAFFIC, ETC.

The client is telling you what to do or report - you are the appraiser

Interview the owner or RE agents etc. Anyone buying in an area with a lot of short-term rentals should be aware of it and make their decisions ( a well-informed buyer ). You can mention it in the appraisal, but whether it affects value is a tough call to extract it. See if your comps are next door to or accoss the street from short term rentals.

 

[Tom D]

In our big university areas where there are plenty of 2-4 housing with bedrooms being rented to college students. Depending on the rentals amount, could be a lot, some sf owners were not happy with the partying going on. However, i couldn't tell if that affected any single family values, external influence. And the demand for student housing literally gentrified the area with rehabs and new 2-4 construction, in what was once areas you didn't want to be in.

 

[alebrewer]

I don't see it so much as a client telling the appraiser what to do, but rather letting them know of a potential external obsolescence. Big difference. To Surf's point - have you reviewed the STR rules for your municipality (if such exist)? I'd definitely think location next to a VRBO could exhibit external obsolescence, but depending on the rules, that could be a moving target...