Permits

Before you set a price — before you even pick an agent — you need the answer to one question: does your right to operate transfer with the property? Everything about your sale hinges on it.

The three scenarios

• Permit transfers with the property. Rare and golden. In cities that cap STR licenses or attach them to the parcel, a transferable permit can be worth tens of thousands on its own — buyers are purchasing a scarce right to operate, not just a house. If this is you, it belongs in the first line of your listing.
• Permit is grandfathered — but personal. The trap. Many ordinances let existing operators continue under old rules, but the exemption dies at transfer. Your STR is legal for you; the buyer inherits a house that may never be permitted again. Investors will find this out in due diligence — better they hear it from you on day one, priced accordingly, than discover it and walk (or sue).
• New owner must reapply. The middle case. Ask the licensing office: is approval routine or discretionary? Is there a cap or waitlist? A 2-week rubber stamp barely dents value; a lottery with a 200-person waitlist means you're effectively selling a house, not an STR.

Get it in writing

Call your city or county licensing office and ask specifically: "If I sell, can the new owner operate a short-term rental at this address, and what is the process?" Get the answer by email. Verbal reassurances from a clerk are worth nothing in a deal dispute — and ordinances change, so date-stamp what you learn.

Go deeper: check your market's current rules in our STR Regulations Directory.

ACTION: This week, get written confirmation of your permit's transferability from your licensing authority, and add it to your deal room. Do not let a buyer's attorney learn the answer before you do.

Next lesson: timing — why the best month to list an STR is usually not the month you'd list a normal house.