Two Airbnb hosts in Singapore were fined $60,000 each for breaking local laws regarding short term-rentals.
You can read the full story here.
We are not likely to see $60,000 fines in the US anytime soon, but these situations continue to raise questions about short term rentals as a viable, long term investment strategy.
Short-term rentals are not a viable way to skirt local zoning laws, run a hotel without licensing, or run a rental property business without rental licensing and licenses. There seems to be a growing trend towards tightening restrictions on investors who want to operate their short-term rental business and pushing them to meet the same zoning, regulatory, and licensing restrictions as other investors.
Nashville, one of the hottest Airbnb markets in the country, passed regulation that we will likely see in other markets, phasing out short-term rental licenses in residential neighborhoods (read more here). We might not see $60,000 fines against Airbnb hosts like Singapore imposed, but it is a growing trend that should make investors think twice about short term rentals being a long-term investment strategy.