Using property as short term stay (BnB)

[Leviofan]

What is the name of your state (only U.S. law)? TN

2 years ago my partner decided to try one of our apartments as a short term stay also known as bed and breakfast. We took one of our models and listed it on BnB websites, once we started to get people, he decided to increase the number of units to 12, then to 30 now he is planning to have 70. Does any one know if it is OK to operate like a hotel in an apartment building and what might be a consiquencies? I know that BnBs are forbidden in NY. Don't want to have any problems because of my partners greediness.
Any recomendations will be appreciated.

Thanks

 

[tranquility]

What is the name of your state (only U.S. law)? TN

2 years ago my partner decided to try one of our apartments as a short term stay also known as bed and breakfast. We took one of our models and listed it on BnB websites, once we started to get people, he decided to increase the number of units to 12, then to 30 now he is planning to have 70. Does any one know if it is OK to operate like a hotel in an apartment building and what might be a consiquencies? I know that BnBs are forbidden in NY. Don't want to have any problems because of my partners greediness.
Any recomendations will be appreciated.

Thanks

http://www.realtor.org/sites/default/files/reports/2011/short-term-rental-housing-restrictions-white-paper-2011-09.pdf

Remember too, you change from passive income on the rental to non-passive income for your business.