Very short term rental...

[CANative]

Commercial use, yeah. The same would follow for anyone operating their appraisal business out of their spare bedroom. That doesn't change the nature of the real estate to a commercial property. Operating a day care (or any of a large number of home occupations) out of a house doesn't change it to a commercial property.

What's that old saying...'Just because a cat has kittens in an oven doesn't mean they're biscuits." I think that's one of Terrel's. Just because someone operates a business out of a house does not change the nature of the house to a commercial property (unless they've made significant changes to the property to accommodate the business, obviously).

My post was to inject some snark into this thread. Not a request for information. LOL

 

[Mark K]

My post was to inject some snark into this thread. Not a request for information. LOL

You should be more careful about what you don't ask for!

 

[Terrel L. Shields]

What's that old saying...'Just because a cat has kittens in an oven doesn't mean they're biscuits." I think that's one of Terrel's

I borrowed it from another appraiser posting long ago.

The use of 1 to 4 units as "residential" is predicated upon monthly rentals. Using it as a short term rental falls in the category of an Inn or a boarding house...and that is like the difference in a trailer park where you pay monthly dues for long term renting vs. RV Parks where some towns will not permit long term parking in the same spot.

 

[Mark K]

The use of 1 to 4 units as "residential" is predicated upon monthly rentals. Using it as a short term rental falls in the category of an Inn or a boarding house...

Air BnB is a business model that most cities/towns are struggling with re: zoning, etc., but I think most appraisers would recognize the difference between a duplex and a 5,000 sf., 8 BR, 8 ba. or similar bricks/mortar B&B.

The value of the fee simple interest of a duplex isn't affected by someone operating an AirBnB out of one or both sides.

 

[Terrel L. Shields]

The value of the fee simple interest of a duplex isn't affected by someone operating an AirBnB out of one or both sides.

If operated without a license as an inn, then it risks the bank's collateral.

 

[Mark K]

If operated without a license as an inn, then it risks the bank's collateral.

Nowhere in the original post was anything mentioned about an illegal use. But if you want to stretch it far enough, I suppose you could find dozens of potential illegal uses that could affect the value, ASSUMING any fines and/or legal action would accrue to the real estate and not just the business owner.

I'm thinking that using a residential property for a hazardous waste disposal facility might adversely affect the value too. Ad nauseum.

 

[Peter LeQuire]

From #64 - "Air BnB is a business model...". It is not a property type. Air BnB places to stay include virtually every conceivable sort of place to spend the night, including the use of a bedroom and shared bath in a single family residencem as well as the most extravagant detached houses on exotic sites. There are liability and insurance issues with letting rooms, or houses for very short terms. FNMA et al have to determine whether and on what basis they will accept income from such as qualifying income for purpose of their lending programs.

 

[Terrel L. Shields]

Nowhere in the original post was anything mentioned about an illegal use.

It would depend upon the banks view of the operation more so than the legal issues. Banks don't lend on marijuana farms no matter how the states treat them.