Articles Posted in Vacation Rentals

Del Mar, CA - panoramio (3)Author: Staff

California’s coastline is one of the state’s greatest assets. It offers some of the best scenery in the world, draws countless tourists, and boasts some of the highest property values in the state. Coastal property offers many opportunities for California real estate investors, but a unique set of rules may apply. The California Coastal Act (CCA) regulates an area known as the Coastal Zone. Back in the 1970’s, the state created the California Coastal Commission (CCC) to enforce the CCA. An issue that has caused controversy recently in cities and towns up and down the coast involves vacation rental homes, commonly known as short-term rentals (STRs). The CCC must approve municipal regulations affecting coastal STRs. It recently rejected an ordinance in Del Mar that would have limited the duration of time STRs could be rented to the public.

A voter initiative in 1972 first established the CCC, and it became a permanent part of the state government when the California Legislature enacted the CCA in 1976. It has jurisdiction over the Coastal Zone, and a significant part of its purpose is to preserve access to the coastline and public beaches. According to state law, the Coastal Zone extends from the U.S.-Mexico border to the California-Oregon state line. It begins at the “state’s outer limit of jurisdiction” in the Pacific Ocean, and extends inland “generally 1,000 yards from the mean high tide line of the sea.” The inland extent may be less than one thousand yards in urban areas, and more in undeveloped areas. Beachfront properties almost everywhere in the state are located within the Coastal Zone. Continue reading

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Author: Valerie Kriss, Digital Marketing Specialist for Real Estate Experts, a full service real estate firm in Chapel Hill, North Carolina

Trends in San Diego real estate have proven to present ample opportunities for investors. The National Association of Realtors (NAR) ranked the city fifth on its list of hottest real estate markets in America and recently moved it to fourth. And in September, San Diego rent prices reached a record high. Lastly, homes have a much shorter listing life than the average for the country. However, this doesn’t necessarily mean that finding the right property is easy for investors who are looking for the right move. To capitalize on San Diego real estate, it’s important to find an investment property that is most likely to yield a profit.

Location, Location, Location

There’s much more to the location of a property than the city it’s in. As investors, you need to be able to understand what’s valuable in the area, and what nearby attractions you can leverage to your advantage.

Furthermore, when you purchase an investment property, you’re looking at the entire block, and not just the house. Each block has its own unique value; the property on one block can range from one on the next for this reason alone. This emphasis on highly specific location isn’t just unique to San Diego communities. Whether you’re in the Pacific Beach neighborhood of San Diego, or checking out Hillsborough realty in North Carolina, you need to understand your surroundings just as good as any other local.

Rather than just glance at the numbers and neighborhood statistics, do some field work. Drive around the neighborhood, and then walk on foot to visit some of the local stores, restaurants, and other businesses. This will give you a much better feel of the community vibe, and you may even learn about things you didn’t have previous knowledge of, like upcoming developments in the area.

Search For The Right Realtor

Not all realtors are created equal, and the realtor that you choose to help you during your search can easily make or break your experience. Your realtor should have highly relevant experience that aligns with your goals. For example, if you’re looking to invest in and run a bed and breakfast, a realtor with luxury home experience isn’t exactly best-suited. Or, if you’re looking to invest in a major condo project, a realtor that specializes in smaller apartment buildings won’t exactly fit the bill. It may be best to work with a local San Diego brokerage to get the best deals and most relevant agents.

Dig Deep Into Details

The age-old saying goes, “the devil is in the details,” and when it comes to real estate investments, this much can be true. Real estate tycoon Barbara Corcoran told Good Morning America that she once bought a 12-unit motel that had a great rent roll, and after the purchase was finalized, discovered that those tenants hadn’t paid any rent in nine months.

You’ll also need to consider property taxes. It’s not uncommon for property owners to discover that property taxes skyrocket after a buy. For example, if you bought a property from previous owners who had a homestead exemption for many years, you could be looking at a huge chunk of taxes.

Determine Realistic Maintenance Costs

The larger the property, the more maintenance it requires. When investing in any property, you need to be able to determine realistic maintenance costs of that property.  Many landlords have gone bankrupt because they failed to properly calculate their future expenses and grossly underestimated the cost of owning an investment property. If you don’t already own a property in the area, start by asking local San Diego property managers. Most will be more than willing to help you better understand what to expenses to expect in the area. You can also reach out to companies who issue the expenses to look for a previous average expense prices on the property (or comparable properties).

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vacation homesAuthor: Staff

Real Estate News is a new feature at Titles & Deeds. We will periodically address new developments in the real estate world that matter to real estate investors. 

For the past few years, vacation rental properties have been a controversial topic in San Diego. Real estate investors often find vacation rentals to be a lucrative source of income in many San Diego neighborhoods, and companies like Airbnb  and HomeAway offer an efficient way to match property owners with renters. Neighbors of vacation rentals, on the other hand, often complain that allowing short-term rentals of residential properties harms neighborhoods in various ways, such as by increasing noise and traffic. After a rather confusing series of events, the San Diego City Council has scheduled a hearing on a proposed set of regulations affecting short-term vacation rental properties as a form of San Diego real estate.