What is the “Best Use” of a residential property? From and economic point of view it is the use with the highest financial return. From an environmental and community point of view it is the use which does least harm. Profits are easy to count, but harm is not. In many cases Corporate rentals, furnished apartments, vacation rentals, sublets, and Corporate Housing increases the cash flow and value and appeal of a property without doing any harm to neighbors or residents nearby. However, in some areas of the country where there is a shortage of housing, someone often feels harmed. AAOA recently had an article about this issue in San Francisco. See excerpt below.
“This week the San Francisco Tenants Union organized a protest of apartment building conversions that it says violate the law.The group placed bright green “warning” stickers on buildings where it said tenants were evicted using the Ellis Act, which provides for eviction of rental stabilized units if they are taken out of service. But the SFTU says these units were converted to short-term vacation rentals in violation of the law.The stickers were designed to deter would-be vacationers and short-term residents.The protesters again drew attention to the battle raging between rental owners and tenants as the city faces a housing shortage. With the divide between controlled rent and market rates so vast, apartment owners are looking at conversion as a means to shore up profits.”