From what we discussed, you’re most interested in South Lake Tahoe. I thought it would be wise to do some diligence and get the latest information on rules and regulations. In late 2019, the City of South Lake Tahoe passed a “Measure T” regarding Vacation Home Rentals (VHR’s) which designated specific areas that can offer short term rentals and areas where VHR’s are not allowed. Needless to say, the rental areas are primarily the Hotel corridors with a few condo’s. There is a 3-year grandfather clause for existing rentals and a permit process for any property purchases in the VHR Areas which must be approved by the City of South Lake Tahoe. Here’s an article from a prominent South Lake Tahoe Real Estate Firm: https://paradise-realestate.com/south-lake-tahoe-vacation-rentals/
Here’s the actual rules, regulations and link for the City of South Lake Tahoe: https://www.cityofslt.us/453/Vacation-Home-Rentals
This of course only applies to the City of South Lake Tahoe. Properties outside the City of South Lake Tahoe are under different jurisdiction.
As I also shared, North Lake Tahoe (NLT) is a bit different. Presently, a portion of NLT is under the jurisdiction of Washoe County (Reno/Sparks). While Nevada is more rental friendly, there are several HOA/CIC’s watching the progress of the City of South Lake Tahoe and could develop new ordinances for their homeowners that will increase the restrictions on VHR’s or designate areas that are VHR capable. Here’s a second article on North Lake Tahoe: https://paradise-realestate.com/vacation-rentals-in-north-lake-tahoe/
Basically:
- Rules and Regulations for VHR’s can be created and enforced by:
o A City or County
o Homeowners Association or Common Interest Community
o Some homes are under multiple HOA’s/CIC’s.
- Is it possible to find and purchase a Vacation Rental in Lake Tahoe? The answer is YES!
o Homes in the Nevada portion of Lake Tahoe presently have the least restrictions on VHR’s. This Map will help you to identify those areas:
- Is the permit process difficult? Yes, it can be depending on the location of the home.
- Rules, regulations are strictly enforced. Failure to comply by the tenant or owner results in fines issued to the tenant (if applicable) and owner. Multiple infractions could result in loss of the VHR permit.
- Are there properties for sale today that qualify for investment rental? If you’re still interested in a VHR purchase, I suggest we connect you with a Realor in South Lake Tahoe. Being that I’m with Keller Williams (The largest Real Estate Firm in the US), I would be happy to contact one of our top level realtors and make the introduction.
Next Steps:
- www.BiggerPockets.com I suggest you sign up for this free website. There are premium subscriptions available, however, the free version is a good place to start. It’s the #1 Real Estate Investment website available. They host many webinars on all type of real estate investments. The blogs and forums are especially helpful and I’ve seen several discussions on South Lake Tahoe.