BOULDER — Potential profits make the short-term rental market appealing for property owners of all types, but experts urge would-be vacation-home or corporate-apartment owners to learn the nuances of the local regulatory landscape before pouring their hard-earned dollars into an STR investment.

“Do it right, because your neighbors are going to narc on you,” Re/Max of Boulder broker Lisa Wade said Thursday during a panel discussion on STRs at BizWest’s annual Boulder Valley Real Estate Conference.

Local governments take a hard look at short-term rental property owners for a good reason, Boulder County long-range planner Ethan Abner said. 

Regulators operate with a philosophy that prioritizes the “prevent[ion of] the loss of housing stock and increas[ing] housing affordability,” he said, while ensure that STRs aren’t “altering the residential character of neighborhoods.” 

It’s not just local government regulators who scrutinize rental properties, Jorgensen Brownell & Pepin PC attorney Andrew Benefiel said. “You’re going to want to look at HOA regulations” in addition to land use codes, as “subdivision rules may apply to prohibit short term rentals.”

Housing Helpers owner Tom Orlando agreed with this advice. 

“We get a lot of calls from people whose HOAs have busted them,” he said. “The HOAs change [regulations] all the time”

While the risks may seem daunting to the uninitiated, learning the rules of the road could open up a new world of investment income for savvy property owners.

“Requests for long-term rental funding have plummeted” Boulder Equity Partners president Dan Page said, but short-term rental financing is thriving in this high interest rate environment. 

“It’s a great opportunity right now.”