Real Estate Investment: Potential Challenges and Benefits of Short-Term Rental

Posted on in Commercial Lease Agreements

Naperville real estate lawyersThe short-term rental industry has grown exponentially in demand, and savvy real estate investors (along with several others) are looking for a way to profit from it. Part of the reason for this can be traced back to the projected growth of this maturing industry. Still, there are some challenges for investors who are looking to break into this young but growing market. Learn more about these challenges in the following sections, and discover how our seasoned real estate lawyers can help you break into this thriving real estate market.

Challenges in the Short-Term Rental Industry 

Experts say that the short-term rental industry is not only here to stay, it is going to change the way that people look at real estate. Unfortunately, the market is still experiencing some growing pains; lawsuits - mostly from agencies like the National Apartment Association and the National Multifamly Housing Council - are cropping up all over the country. Yet, despite what some people may think, these agencies are not necessarily against short-term rentals. Instead, they simply want a cut of the profits for a property that they rightfully own, but it appears they are not certain of how to get it. So they are taking the matter to court, hoping to gain some traction there.

Real estate investors who find their way into the short-term rental industry may be on the side of the aforementioned agencies because they may be the owners of an apartment or house that is being used as a short-term rental, but some may have already found a way to capitalize on the market. Whatever side you fall on, know that it is important to recognize the current and future potential challenges (i.e. determining who owns the rights to a co-mingled asset, watering down of profits, etc.) and respond to them appropriately.

Demand is Dictating Growth

Challenges in the short-term rental market are not impeding its growth. Experts say it is because demand is dictating the growth, and demand always wins. Some believe that it will completely change the entire real estate industry. Others simply see it as a way to diversify their portfolios. In either case, short-term rentals are here to stay, and investors are encouraged to jump in early.

Contact Our Seasoned Naperville Real Estate Lawyers 

At Lindell & Tessitore, P.C., we understand the importance of evolving with the real estate market. It is why we have become the trusted legal resource for so many clients in the Naperville area. Schedule your personalized consultation with our Naperville real estate attorneys and ask how we can assist you with growing and diversifying your portfolio. Call 630-778-3818 today.


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