We have worked with quite a few buyers over the years looking for short-term properties around Kentucky Lake and Lake Barkley. Some are just looking for investment properties, while others want a vacation home they can also rent out on Airbnb or VRBO when they are not using it themselves.
As agents, we always encourage buyers to research the property carefully before purchasing. Not every subdivision or neighborhood allows short term rentals, and this is something buyers are often surprised to learn. We often have buyers that fall in love with a property only to find out that it doesn’t meet their needs.
Not Every Neighborhood Allows Short Term Rentals
A lot of people assume that if a home is near the lake, it can automatically be used as a vacation rental. That is not always the case.
Some subdivisions have restrictions that directly limit or prohibit short term rentals. Others have older restrictions that may not specifically mention Airbnb or VRBO but still include wording such as “residential use only” or “commercial activity restrictions.”
The good news is, you’re not in this alone! We are happy to help you research the property by locating restrictions and looking up MLS records, HOA documents or county records. Buyers can also obtain these documents from the courthouse. That said, restrictions are legal documents, so we always recommend speaking with an attorney if you are purchasing a property specifically for short term rental use.
Check Airbnb and VRBO
One thing we often tell buyers to do is check Airbnb and VRBO to see whether homes in the neighborhood are already being rented out.
If several homes in the subdivision are listed, that can sometimes be a good sign that short-term rentals are common in the area. However, it is still important to check the restrictions carefully. Just because homes are currently being rented does not necessarily mean the restrictions officially allow it.
These sites can also give you a feel for rental rates and competition in the area.
Ask for Financial Records
If the home has already been used as a short-term rental, it is always a good idea to ask for financial records if they are available.
Actual rental history and expenses can give you a much better idea of how the property has performed than online income estimates alone.
Every Lake Neighborhood Is Different
One thing we have learned from working with lake buyers is that every neighborhood is a little different. Some areas are very vacation rental friendly, while others are much more geared toward full time residents.
If you are thinking about buying a short-term rental property around Kentucky Lake or Lake Barkley, we would be happy to help you research properties and answer some of the common questions that come up during the process. Email Shawn@kylake.com or Jennifer@kylake.com and let us know what type of property you are looking for and let us help you on your journey!
