LIEB BLOG

Legal Media Analysts

Showing posts with label Summer Rental. Show all posts
Showing posts with label Summer Rental. Show all posts

Tuesday, May 23, 2017

Top 10 Questions for Landlords to Ask Themselves Before Leasing to a Friend

Many homeowners on the East End rent out their property for various parts of the summer season in order to recoup their carrying costs on the property and to have an additional source of income. Some even rationalize their initial purchase of their vacation home by calling it an investment property, where they plan to designate a set period of time that the property will be used for investment purposes and another limited time where it’s designated for pleasure. So when a friend asks to rent this vacation property, knowing of its availability, it may sound like a godsend: you can have an easy experience, avoid using a real estate broker, and save on brokerage fees while also helping out a friend who will love your property as you do. However, before letting your friend lease your property, you need to ask yourself: do I want to lose my friendship with this prospective tenant if the rental doesn’t work out?
If your answer to this question is that it’s completely inapplicable to you because your plan is to simply allow your friend to live at your expense and you have no problem with the financial burden resulting from the lost income stream, you should nonetheless consider possible liabilities that your friend can cause you. Beyond the liabilities of town/village code violations for noise violations, parking violations, rental permit violations, and so on, there is property damage and don’t forget feeling unappreciated when you are doing a good deed.
Regardless, all landlords should ask themselves the following questions before just jumping to the conclusion that renting to a friend is a good idea:

Thursday, July 07, 2016

What You Need To Know About Short Term Rentals In Southold

In September 2015, Southold passed a law, Southold Town Zoning Code §280-4, prohibiting all transient rental properties, also known as short-term rentals. Thereafter, local folklore emerged about grandfathering a house around the law. Don’t believe the folklore.

As a matter of background, prior to the transient rental law, Southold homeowners were generally able to rent their homes with no minimum durational restrictions. Now, all dwellings located in Southold, except for those on Fisher’s Island, are prohibited from leasing their homes for a period of less than 14 nights. Moreover, when a property is listed on a short-term rental website, the law presumes the dwelling is being used as a transient rental property. This law does not affect the hospitality industry as applied to licensed bed and breakfasts, hotels, and motels. Therefore, if you wish to stay in Southold for a duration of less than 14 nights, you must stay at a motel, hotel, or bed and breakfast.    

As to grandfathering a house around the law, for a non-conforming use to legally continue it must:
  • Not been enlarged, altered, extended, reconstructed or restored; and 
  • Never be changed to a conforming use. 
This last requirement is why Southold residents will functionally be unable to grandfather around the Southold transient rental law. Simply stated, once a homeowner’s property is used for a conforming use that nonconforming use no longer falls under the grandfathering exception. In a short-term rental, once the rental period is over, possession is transferred back to the homeowner in a conforming use. So, the only way to get grandfathering is to always have continuous occupancy at a home by tenants without ever having a break in rentals. This functionally doesn’t happen. Sometimes the best way to challenge a law that you don’t like isn’t to find a way around it, but instead to become active in local government and have the law changed to your liking.