Some short term rental (STR) owners are underwater. They owe more than their property is worth.
To cover growing expenses, some landlords forced to accept sketchy renters with little or no background check.
Some resort to mortgage and insurance fraud.
70% of novice investors buy STR McMansions using their personal name, rather than an LLC.
see: STR LAW GUYS
Short term rentals are a commercial enterprise operating within a residential neighborhood.
STR’s are the highest risk assets in the real estate space. Ripe for litigation.
Some hide behind LLC and holding company. Who ya gonna sue?
Some purchase residential insurance instead of mandatory, more expensive commercial insurance rates.
Claims likely to be denied.
Over-saturation of short-term rentals in Brigantine and Ventnor. Supply of STR’s growing. Too many fighting over diminished demand.
Brigantine has no current STR rules. Residents complain about lack of enforcement.
Brigantine Mayor Vince Sera brushes off concern.
Brigantine Planning Board with assist from Lance Landgraf, selectively following local zoning ordinance.
Liability insurance. Novice landlords. Running commercial operation within a residential neighborhood.
STR’s lease agreement for EVERY SINGLE guest. Lawyers recommend getting names and signatures of every guest on every lease agreement.
Shore towns don’t keep up with how neighboring towns manage and enforce STR’s.