The short-term rental industry has grown exponentially in demand, and savvy real estate investors (along with several others) are looking for a way to profit from it. Part of the reason for this can be traced back to the projected growth of this maturing industry. Still, there are some challenges for investors who are looking to break into this young but growing market. Learn more about these challenges in the following sections, and discover how our seasoned real estate lawyers can help you break into this thriving real estate market.

Challenges in the Short-Term Rental Industry 

Experts say that the short-term rental industry is not only here to stay, it is going to change the way that people look at real estate. Unfortunately, the market is still experiencing some growing pains; lawsuits - mostly from agencies like the National Apartment Association and the National Multifamly Housing Council - are cropping up all over the country. Yet, despite what some people may think, these agencies are not necessarily against short-term rentals. Instead, they simply want a cut of the profits for a property that they rightfully own, but it appears they are not certain of how to get it. So they are taking the matter to court, hoping to gain some traction there.

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When it comes to zoning and land use laws, developers need to consider more than just the present situation. Unexpected or unplanned changes can occur - sometimes to the detriment of your project. Learn more about how changes in zoning and land use laws may impact your current or prospective land development project, and discover how our seasoned Naperville commercial real estate attorneys can help you mitigate against such issues.

When Zoning and Land Use Laws Change

Municipalities tend to have a long-term vision for the way they want their town or city developed. Typically based on a variety of factors, such as land or wildlife preservation; values, needs, and desires of the community; and earning or tourist potential, this vision is usually outlined far in advance. Of course, things change. Perhaps the population ages or the town experiences a significant and unexpected influx of young people or successful entrepreneurs. Maybe the area starts to flood or suffer from erosion, or an indigenous species become endangered. Regardless of the reason, the city must then attempt to accommodate the change. That may require alterations to their plan, or even to zoning and land use laws.

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Living under the roof of another person can require a lot of compromises - but what can you do if compromise fails, or if your landlord refuses to hear your side of thing? Tenants often assume that a lawsuit is the answer, but this method is usually both complex and expensive. Thankfully, there are other tools and resources that tenants can use to resolve issues with their landlords. Learn more about them in the following sections, and discover how a seasoned Naperville real estate lawyer can help you resolve your landlord-tenant dispute.

Negotiating a Settlement with Your Landlord 

Many landlord-tenant issues can be resolved through a negotiation - a process in which parties compromise to reach a suitable resolution. You can do this with or without a mediator (an unbiased third-party that can help you and your landlord reach a suitable agreement). To increase your chances of success in the process, try a few of these helpful hints:

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Partnerships in the commercial real estate (CRE) industry can either make or break your business. Most savvy investors understand this, but they may not fully understand what factors may lead them to a path of success. Learn more in the following sections, including how the assistance of a seasoned commercial real estate lawyer can help improve your chances of growing a healthy and profitable business now, and in the years to come.

Partnering Out of Financial Convenience

Partnerships that are born out of financial convenience (i.e. because you lack capital or cannot afford to hire someone for the job) are rarely profitable. That is partly because only one person is bringing in the money, but there are other issues that can cause these partnerships to fail as well. For example, if you partner with someone who does not have the business sense to keep up, you may find yourself doing all the hard work with very little payback. You could also find yourself liable for the mistakes they make along the way. Alternatively, if you partner has capital but you have all the ideas, you risk them stealing your ideas and profiting from them on their own. Avoid such matters by ensuring you only partner with someone who can bring more than money to the table, and always ensure you have a contract that clearly outlines the duties and responsibilities of each party.

Not Developing an Exit Strategy for the Business

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House-flipping, defined as a house that is bought, revamped, and then sold within a 12-month period, is now sitting at a 10-year high. Experts say popular television shows are at least partially responsible for this hike. Unfortunately, such shows do not give an accurate portrayal of the industry and the challenges that house-flippers may face during the house-flipping process. Educate yourself on the process, and discover how a seasoned real estate lawyer may be able to help mitigate the risks and potential issues you may deal with along the way.

The Pros and Cons of House-Flipping

Under the right circumstances, house-flipping can be a lucrative market. Unfortunately, all the professionals that are needed to complete the process - real estate agents and brokers, builders, construction crews, etc - cut into your bottom line. You can increase your profits by learning more about the industry and expanding your knowledge (i.e. becoming a real estate agent), but one cannot realistically handle all aspects of their deals.

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