The house is owned by a revocable trust who leases the property to us with permission to sublet. So technically there is one lease between landlord and tennant. When vacationers use the property weekly or monthly there is not a lease just a simple rental agreement with arrival and departure dates, a deposit and a cleaning fee. When I spoke to the mayor he stated that we’ve turned a single family home into a hotel. That’s garbage.
THE WORK AROUND IDEA: I’m thinking we could make it a corporate property and let our clients stay for free. I could sell the guest a website (new client) that costs me $0 and about 2 minutes of my time to install. Then they pay $1,750 for the website and get a free week at the beach house which sleeps up to 14. Then all they pay for is the cleaning fee.
Do you think this will work? Have a better suggestion? Can the city prohibit or place restrictions on who I let use the property?
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If it is zoned residential 1 family dwelling then the city is absolutely right and your work around will not get past that fact.
The mayors comment is NOT garbage that is exactly what you have done!
Everything but the cleaning fee. You can’t receive any revenue from the house without being considered a business. The cleaning fee will have to be used as a “setup fee” for internet services or something like that. It sounds legit to me, but the charge has to be for an actual service. So, if you setup their website for a flat fee, who’s to stop you from saying “thanks for the business, please feel free to visit my condo for free”.
You would be evading the hotel tax for the city doing that, and therefore breaking a law, even if the zoning allows for vacation rentals. You have to have your vacation rental in proper zoning, pay income tax on the rent, usually sales tax, and hotel tax.
Your little plan sounds like you are trying to defraud your community of its assets.
Which City are you in? In Cape Coral Florida you can rent homes on a weekly base but you will have to pay “tourist and bed tax” if the rent is shorter than 6 Month. There are only a few gated communities with rent limits but that has nothing to do with the City, those are the community rules and regulations.
I would try to find out where the problem is and what the problem is before going above and beyond to find a back door to get things done.
Sound too much trouble to make so little.
There were much lucrative RE investment and you seem to be quite intelligent. Shouldn’t be too hard to find one that is better money.
I like to make fast, good honest and easy money that I can keep repeat itself many times over. and I do. More than glad to help if it seem to be what you like to do