Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm considering buying a short term rental property in Santa Fe sometime next year. I'm wondering if any of you have any advice. Property management company referrals, what to look for in a rental, location, etc. Thanks!
To give you the (kind of) short answer, the city limits the number of short term rental permits to 300. "Short term" means a period of less than 30 days. Once that number is reached, an application is put on a waiting list. There is a waiting list now. If you don't want to go through the hassle of applying for a short-term rental permit, look for a property that has a current permit and submit an application to city's short term rental program manager within 90 (I believe) days of closing - but in any case before the permit expires. The city will then transfer the permit to the new owner. If the property once had such a permit, but it has expired, then you'll have to apply for a new one, just like you would if the property never had a permit.
If the property was built as part of a "resort community" (Quail Run, El Corazon de Santa Fe, Fort Marcy Compound) within the city limits, or is a property of any kind located out of the city limits then no permit is required.
My experience with clients shows that most often the best locations for short term rentals are within a mile of the plaza (requires a permit), or Quail Run, the Villas at Bishops Lodge and Pueblo Encantado (in Tesuque).
Hope this helps.
You're welcome. There's a lot to know about buying a short term rental investment property - and we haven't even discussed the potential mortgage issues that could arise depending on a host of factors. Definitely do your homework !
Good luck.
I'm considering buying a short term rental property in Santa Fe sometime next year. I'm wondering if any of you have any advice. Property management company referrals, what to look for in a rental, location, etc. Thanks!
Read the reviews of different mgmt companies on Yelp. You'll be glad you did.
Last edited by Poncho_NM; 08-26-2014 at 07:22 PM..
Reason: Consumer complaints are not permitted under City-Data's Terms of Service.
Recommendations are allowed for posters that have at least 10 posts. One cannot recommend himself/herself. The only area where recommendations are not permitted is real estate,
GreatSantaFe, what are the mortgage issues involved?
I am not a mortgage broker or lender, but here are some examples:
1 - If it's an investment property (not owner-occupied) then your lender may require a minimum of 25% down payment, and the interest rate will probably be more than for an owner-occupied property. So even if a borrower qualifies for the mortgage payments, do they have the cash for the down payment?
2 - Is the rental unit a condo? If so, are more than 10% of the units in the condominium community owned by a single person/investor? If so, then that will make it a non-conforming loan with respect to FannieMae. As many banks sell their loans and/or want their loans to be FHA-insured, if the property is non-conforming, then the lender will turn down your loan or they would have to have the ability to grant a portfolio (in-house) loan - which are not 30-year fixed, but ARMs - and which may have more stringent requirements and/or financial impacts on the borrower.
3 - The Dodd-Frank bill has changed lending practices (not such a bad thing given the mortgage practices of the early 2000's) and it's somewhat tougher for folks to qualify for mortgage loans.
Cash buyers don't have to worry about these regulations. Other options are to check out financial management firms like Morgan Stanley, which have mortgage departments and several different loan programs. The most important advice I can give is to talk with lenders before you go out to look for properties, but even then you may not know whether the property you desire will meet all lending requirements. Your Realtor should ensure you and your lender get the required information about the property as quickly as possible so there are no last minute surprises.
Thank you, GreatSantaFe. These are pretty standard issues. Are there any that you know of related to short-term rentals?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
