Residential Real Estate Investment Status in Bozeman

In the quest to provide more affordable housing options in Bozeman, short term rentals have come under fire and the Bozeman City Commission has banned all new short term rentals.

Potential short term rentals that are located where legally allowed per zoning regulations had until December 14, 2023 to submit their applications and begin the licensing process. Legal short term rentals were grandfathered into the new city regulations and are being allowed to continue operating for the foreseeable future. 

Our personal opinion is that Bozeman definitely needs short term rentals (STRs) to help accommodate the tourists that come here. STRs currently accommodate 47% of tourists. These visitors, and their infusion of dollars into the economy while visiting the area, in turn help to keep local people employed. Although not everyone likes tourism, Bozeman has a large and healthy economy, thanks in part to these visitors.  

Range Properties operates over 20 short term rentals, none of which were negatively affected by the ban. We have always followed all licensing procedures, so all of our managed STRS were grandfathered into the new city regulations. affected by the ban.  

So are residential properties still good investments?

We have taken on new properties since the ban, and those properties have become furnished mid term rentals. A mid term rental is defined by the city as anything over 28 days. The Bozeman market continues to see  very strong traffic in these types of rentals. The guests staying in these mid term units tend to be digital nomads, workers here on assignment, and families between homes. Long term rentals, at the right purchase price, are also strong, particularly if they are larger than 2 bedrooms, 2 baths. Short term rentals are also still allowed in some areas of Gallatin County.

Range Properties is intimately familiar with zoning and where short term rentals are allowed.  We can help analyze the economics of all three types of rentals to help you make the best decision for your portfolio. Contactus to learn more about the pros and cons of short term rentals and what makes the most sense for your goals.