I am compelled to share these thoughts because of the consistent misinformation and myths that are being perpetuated regarding short-term rentals and individual property ownership and rights.
Myth #1: Caps on short-term rentals will negatively affect my property value. I’m wrapping up my ninth year as a Realtor, and the most common question I’ve received over the years from buyers and sellers is, “What is my property worth/what is the value of this property.” There are many factors that go into the valuation of property, but the real value of your property is what a ready and able buyer is willing to pay for it. Whether or not your home is or could be a rental property does not determine the value of your property. In my experience, buyers who want to live in a neighborhood without constant rental turnover won’t look at a home for purchase if it is surrounded by lots of other rental properties. Therefore, you lose out on potential buyers, which can diminish your options for sale.
Also, investors or second-home owners who are interested in purchasing with the intent to rent have a return-on-investment model that will predetermine what they are willing to purchase the property for because they have to make a profit. That offer will usually be far less than what the normal market will bear.
And has everyone forgotten about supply and demand? If there is an unfettered supply of rental properties, there will only be one way to stand out in the market: price. Offer less than your competition for the week or weekend rental.
Myth #2: It’s my inherent right as a property owner to be able to short-term rent. You have a right to own property – you do not have the right to rent your property. Look it up under South Carolina Legislative Code of Laws. There is no law that says a property owner is entitled to short-term rent their property. A short-term rental is a privilege that is granted when you pay the appropriate fee for a license and abide by the terms and rules of that license.
Those of us supporting the short-term rental cap want to balance, not eradicate, short-term rentals. We want to preserve our neighborhoods. That is the real truth.