Will short-term rental changes shake up the second-home market? | Market Mondays Hilton Head Island
The proposed second-home rental market changes continue. We have the latest on what the rules propose, plus, we talk the latest on Hilton Head real estate as new inventory hits the market. Thanks to guest host Ellen Young and special guest Michelle Cheadle!
00:00:00:01 - 00:00:21:16This week, we'll take an in-depth look at the proposed vacation rental regulations for Hilton Head Island and see what inventory is doing. And also talk all things short term rental with a special guest, Michelle Cheadle. Hey, guys, it's Ellen Young. And today I am filling in for Dan Prud'homme on Market Mondays and I have Michelle Cheadle here with me.00:00:21:16 - 00:00:23:21Glad to be here. Thanks for having me.00:00:23:21 - 00:00:53:21So as far as the market goes, we are seeing a lot more listings come on the market, for example, this week we have 67 new listings versus last week we had 46. So that's a great thing because for about the past two years, we have had very low inventory and which has created the frenzy that we had with the multiple offers even we were seeing properties with offers of over over 20 or 30 offers on one property.00:00:54:04 - 00:01:01:06So it's good to get a little bit more inventory. How do you feel, Michel? Do you feel like you are seeing more listings? Come on.00:01:01:12 - 00:01:07:17Yes, for sure. Less of the bidding frenzy, less offers on each property and more contracts.00:01:07:21 - 00:01:37:06That can also mean a little bit more negotiating power for the buyer. The seller has held so much power for about the past two years, so it's good to get back to somewhat of a normal market and looking forward to that. So today we want to talk about the short term rental market the town is is proposing some new roles and changes, and Michelle and I are just going to go over some of those.00:01:37:06 - 00:01:50:09Again, these are proposed changes. Nothing has been passed yet. So just want to give you all a heads up. If you do own a short term rental or you're thinking about purchasing.00:01:50:17 - 00:01:57:09What the town is proposing is an ordinance that will help balance those short term rentals with our local neighborhoods.00:01:57:15 - 00:02:27:18And a lot of the planned communities, there are already rules in place. So I believe they're trying to get some of the other areas just up to speed and with some of their rules and regulations. For example, quiet time in most of the communities and I believe on Hilton Head as a whole is supposed to be from 10 p.m. to 7 a.m. and they're just going to be a little bit more strict with that.00:02:27:20 - 00:02:37:17Other items as well, like putting your trash in the correct place. And if you're renters don't do that, they're going to potentially fine you.00:02:37:17 - 00:03:02:08And what this proposal is a permit to each short term rental property owner of $250 a year which that figure is still up in the air has not been finalized. And what that is mandating is you as a short term rental property owner will be available within one hour to be physically present at your property if it has been declared a nuisance.00:03:02:08 - 00:03:22:14And I feel like Hilton Head as a whole brings a type of renter that is a little more courteous and, and, and just is not here to necessarily break the rules. This isn't like a party town. So we have, we have that.00:03:23:14 - 00:03:29:06That is correct. The new ordinance would go into effect if approved January 1st. 20, 23.00:03:29:06 - 00:03:36:07So Michelle, how do you feel like this is going to impact our short term rentals or do you feel like it will impact them at all?00:03:36:15 - 00:03:51:07Oh, I don't feel it will impact our short term rentals at all. I think it'll only continue to increase. Like in the olden days, we had seasons. We no longer have seasons anymore. Our short term renters are here year round.00:03:51:14 - 00:04:30:03Yeah, I would have to agree. I think covered had a lot to do with that where so many people are able to work remote. So we did have an off season where now there is not really much of an off season. For example, the month of December of 20, 21 was so busy here. So I know a lot of those people had to still be working, but we're just able to maybe work for a move and same with the fall months so it's we're becoming more of a year round you know rental market.00:04:30:05 - 00:04:45:22OK, so now to get to the mailbag, Samantha from Facebook asks, I'm planning a trip to Hilton Head Island in October, but I don't know if I should do a vacation rental or just get an Airbnb. What are the pros and cons of each?00:04:46:00 - 00:05:00:12I think the big thing is, is do your research online and if you come across a property that you like read the reviews of each property and whether it's a vacation rental or an Airbnb, I think you'll be happy in either choice.00:05:00:12 - 00:05:27:15I would have to agree with that. I know for me personally, I always look at the reviews, and if you're dealing with an Airbnb, a lot of times you have contact with the owner. And if the owner is very receptive to questions or concerns that you have, then that usually dictates if I'm going to rent that property. But also in Hilton Head, there are several different areas.00:05:27:22 - 00:05:39:06So if you're trying to be in a specific area, that may dictate whether you go through Airbnb B or actually go through a vacation rental company.00:05:39:23 - 00:05:40:22That's a very good point.00:05:40:22 - 00:05:46:10Ellen, thank you so much, Michelle, for being here. And Dan time, you always.