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Short term rentals (STRs) in Las Vegas right now are somewhat restricted, by both location and some other challenges:
LOCATIONS
- The city of Las Vegas and unincorporated Clark County (where The Strip is located) do not permit short term rentals. You'll see many illegal ones online but know they are not allowed
- The City of North Las Vegas allows them but location wise it's tough to find one that would make sense that's not in an existing HOA.
- City of Henderson is the best bet, as there are rural preservation areas with larger lots, pools, etc. and we can market it for the extensive outdoors recreational oppor tunities (Lake Mead, Lake Las Vegas, 180 miles of dedicated bike and hiking trails, Hoover Dam, etc.).
City of Henderson Rules
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As of November 2020, any new STRs must be more than 1,000 feet from an existing STR. See their map
https://hendersonnv.maps.arcgis.com/apps/webappviewer/index.html?id=cfcb445a82a34c0786b14eb100d8a04e - Most HOAs do not permit rentals under 30 days, this further decreases the number of eligible properties.
Costs to start a Short Term Rental:
- If financing, you'd need 10% down for second home financing or 20%+ for investment property, depending on your lender's requirements
- Allow $20,000 to furnish and complete a full stocking of most average sized properties. More for larger properties
- Startup costs $7,000 (licensing fee with the city, plus initial reserves for utilities, initial property setup - including keyless entry, cameras, noise monitoring, security system, keyless entry locks, etc)
- Renovation costs. STRs must look amazing in photos, particularly outside. We will give you a ballpark on renovations before you submit an offer on any property. But expect to budget at least $30,000 for this, potentially far more depending on the property. Because locations are so limited we don't have the luxury to wait for a fully renovated property, but sometimes we can find ones that only need cosmetic upgrades which is ideal.
Management:
- 18% is our management fee on all revenues except cleaning fees and taxes.We do cover things like batteries, A/C Filters, and minor handyman repairs as part of our service. This is a complete management - we handle marketing, guest communications, guest issues, neighbors, the city. We pay city taxes and all vendors and supervise all vendors. On certain properties, where possible, we meet the guests for check-in. We provide after hours emergency lines, we have a contract with a security company to respond in the even of bad scenarios like a party. We handle supplies and track stocking, we conduct quarterly inspections and oversee regular maintenance. We report any damage to Airbnb or the guest insurance provider and collect any funds to cover incidental damages. And much more!
- City of Henderson charges 13% short term rental tax. We pass this on to guests
- Expect 20-24 days of occupancy (conservatively). Right now our occupancy rates are 95%
- We do not work with home warranties on STRs. They are too slow and do not like to properly repair properties. A bad A/C in the summer can wipe out 2-3 guests at last minute generating both the need to heavily discount rates along with bad reviews which can be costly. We recommend you maintain at least a $3,000 reserve at all times for repairs. We also maintain a reserve but that's for smaller repair items that are common
- See our current marketed properties here: http://rentalhomes.vegas