Debate on Appraising Short-Term Rentals
By Julie Friess, SRA, AI-RRS, MA
Video 22 minutes. Worth Watching!
Excerpt: What can appraisers learn when it comes to short-term and long-term rentals? What role does an appraiser take when sorting between the two? What can appraisers learn when it comes to short-term and long-term rentals? What role does an appraiser take when sorting between the two? These questions and much more will be answered.
My comments: Julie is not referring to an owner-occupant renting out a spare room in their house for a short term. She is talking about an investor buying and renting many rooms in a house, sometimes changing the floor plan. The photo above is a good example: an exterior door for access to a bedroom. This is not typical for a single family home
In the video, Joan Trice and Julie disagreed on how to appraise Short Term Rentals. I have been a commercial appraiser for over 40 years. It is obvious to me that you need experience and knowledge of what to do when appraising them as commercial properties.
If the GSEs are unclear on this, that is their problem, not yours. Just Say No! Don’t Risk Your License!
Julie has lived for decades in Sedona, a popular vacation location. Many homes were changed to investor-purchased Airbnbs with few home rentals available for local residents. Julie and a group of other concerned residents are now preparing for August 5, 2022, when there is an election for new city council members.
Julie and I are co-hosts every Thursday at 2 PM Pacific Time in our Clubhouse group (Real Estate Appraisal Questions). To attend, download the Clubhouse app on your smartphone. All sessions are recorded and available. Recent topics include Water rights, views, location, and more. Short-term Rentals. Zoning, Highest, and Best Use. Past, Present, and Future of Residential Appraising.
Two articles by Julie on my website:
Residential Appraisals and Airbnb Income?
Click here to read
Excerpts from the article: Don’t get caught like a deer in the headlights! State appraisal boards ARE disciplining appraisers across the country for improperly using the business income (Short term Rental – STR) from AirBnBs on the residential 1007 Fannie Mae form.
Lenders and AMCs want residential appraisers to value these properties as both the real estate and the business values of these properties – Wrong!!
Tales of a Trainee at Appraisal Camp Sedona
Click here to read
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NOTE: Please scroll down to read the other topics in this long blog post on Cubicasa, Desktops, FHA, unusual homes, mortgage origination stats, etc.