If you’re like many of my clients considering buying a vacation home in Lake Tahoe, and earning additional income, then you need to know about some of the changes that the City of SLT is proposing. Understanding where to purchase in South Lake Tahoe, especially if it is a second home that is used for short term rental income, reading this article will save you a lot of time and money.
New Vacation Rental Ordinance Proposed in SLT, CA
There is current talk at the City Council meetings of South Lake Tahoe, CA that obtaining a vacation rental permit will have specific changes throughout the ordinance which could greatly restrict homeowners ability to get a permit. New rules and regulations will be voted on regarding how to obtain actual permits. For example, if this new ordinance passes, new homeowners who are interested in renting out their property for short term rental periods (vacation rentals) would have to obtain permission from every surrounding neighbor and could take up to 6 months to obtain the actual permit without any guarantees of approval.
City vs. County
If the City Council passes the new permit regulations, all properties within the city limits that are used for vacation rentals will have to abide by these new rules. However, the abundant amount of properties that are located OUTSIDE of the city limits (County) will not be affected. Therefore, if you are thinking of purchasing a home in South Lake Tahoe, CA and want to rent it out part of the year while you’re not residing in the property, I would recommend purchasing in the County or the Nevada side of the Lake because of the time it will take to get an approval on a vacation permit within the city limits.
We get a lot of questions regarding where to buy in South Lake Tahoe and the advantages and disadvantages of buying on the Nevada side of the lake instead of the California side. Nevada home sales tend to be higher in price than those based in California. For example, the average purchase price for homes on the NV side of South Lake Tahoe is currently around $642,000 while averaging $385,000 in California. One of the main reasons potential buyer’s purchase in Nevada is to escape the State Income Tax which Nevada does not have. In conclusion, buying in Nevada has the benefit of being less expensive on an annual basis (if you are using the home as your primary residence) however the higher price points to actually purchase a property tend to be a disadvantage for some. For more information regarding the benefits of living in Nevada, click here.
I will keep you updated on the Vacation Rental Ordinance as it moves forward in City Council and please feel free to contact me with any questions or concerns you might have regarding this issue.
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