There’s an ongoing debate about the pros and cons of vacation homes and pied-à-terre’s — whether owned for personal use, rented as an investment, or both. Here’s a quick overview:
Pros:
- High demand from part-time owners boosts property values in vacation areas.
- These homes generate real estate taxes benefiting local communities.
- They create jobs in construction, maintenance, and renovation.
- Some areas impose additional rental and transfer taxes, adding local revenue.
- Vacationers spend more on dining, shopping, and amenities, supporting local sales tax.
- A mix of locals and visitors enriches community life.
- Short-term rental owners often maintain properties well to keep good ratings.
Cons:
- Increased demand can drive prices beyond what locals can afford, reducing long-term inventory.
- Vacationers may not always respect local rules on noise and parking.
- Part-time owners might not care for properties as fully as full-time residents.
- Seasonal employment can be unstable for local workers.
- Some pied-à-terre owners avoid local taxes, impacting community resources.
- Laws and regulations around these homes can change unpredictably.
- Hotel industry lobbyists often oppose short-term rentals as competition.
If you’re thinking about investing in or purchasing a vacation home or pied-à-terre, understanding these factors is key. I’m happy to discuss how this applies to your situation and local markets. Reach out to Amie Pisano today.
📧 Email: [email protected]
📞 Phone: 914-715-2632
