Lake Property used as weekly rental

Started by DarlaL • 9 replies • 1870 views

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DarlaL (Texas)
Posts: 3

Posted:

The builder/developer is also a homeowner. Recently built a new home and started using it as a weekend rental for income, to the dismay of the rest of the homeowners in this quiet mostly, retired subdivison. The property is listed on a rental website with all the info (sleeps 12-16, etc.). The By laws pertaining to this are: No residence may be used as a business except that of an office or shop not for the use of the general public and residences may not be rented for periods of less than 60 days. He was told he couldn't do this and answered they checked and were told they couldand no one would say or do anything about it. A meeting was held, and seeing an attorney tomorrow. Any advice from anyone who has been thru anything similiar?

TimB4 (Tennessee)
Posts: 21,059

Posted:

The individual is guilty of breaking the covenants, so what ever enforcement policy is typically used would be applicable here as well. Additionally, follow your attorneys advise.

Start keeping documentation on it (i.e. make a printed copy of the website, ads, etc.).

Unless you go to court to have the short term rentals quit, you will probably be limited to fines.

Tim

TimB4 (Tennessee)
Posts: 21,059

Posted:

Forgot to ask,

Who is in charge of the Association (the builder or the homeowner)?

GlenL (Ohio)
Posts: 5,491

Posted:

You might also check with your local county, weekend rentals usually have stricter requirements than long term and are often taxed differently. Especially if you are in a resort type area.

Studies show that 5 out of 4 people have problems with fractions

DarlaL (Texas)
Posts: 3

Posted:

We don't have a HOA, but each of us who either purchased one of the homes or property & built a home, were given these CC&R's by the developer and these were brought to our attention by our realtor. One homeowner was even required to provide it to his lender. The subdivision has 13 lots: 4 still vacant. The builder/developer/homeowner has their home & the rental. The remaining 7 properties are homeowners that purchased under these CC&R's. We're just hoping to just have the short term rentals stopped, as we feel this is going to effect our property values. We did copy the web site with the rental info. Will look into any local county requirements towards the rental in the area, (good idea).
I neglected to mention, the builder is also a fishing guide on the lake, and is using the home for his guide clients. We're still in disbelief he's done this. The next thing we're thinking will happen, is he will sell his current home to do the same thing and/or build more homes for the sole purpose of weekend rentals. Definately upsetting.

TimB4 (Tennessee)
Posts: 21,059

Posted:

If you have CC&Rs, I suspect that you do have an HOA but that the builder is in charge of it.

If you pay any assessments to maintain the common area, the people you are paying it to would be the HOA. However, it's also possible that you are not paying any assessments (HOA fees) as sometimes the builder will keep the fees low or non-existent while they are in charge to increase sales.

Good News is that any owner can enforce the CC&Rs. However, it will require going to court to do so. This could be expensive so the more that join in on the enforcement issue, the less it will cost each of you.

Tim

TimB4 (Tennessee)
Posts: 21,059

Posted:

IMPORTANT - Make sure you bring a copy of the CC&Rs with you to the attorneys office. You probably knew that already, but it couldn't hurt to mention.

DarlaL (Texas)
Posts: 3

Posted:

If the builder is in charge (no fees) of the HOA, can he change the CC&Rs for his benefit? Hoping that a letter from an attorney to cease & desist, will end it. But could anything ever be that easy? We're anticipating it going to court. Would you know if this a long process and do the courts usually side with the CC&Rs and/or the majority of the homeowners that become involved? I guess we'll find out more tomorrow once we talk to the attorney.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Courts typically go on the facts. With the CC&Rs supporting you, I would give it a good chance of winning. However, I also don't know all the facts that might be associated with the issue.

Tim

PeterD3 (Florida)
Posts: 708

Posted:

Review your docs.

Often the declarant, whiule in control, can be immune from some [or all] of the restrictions.

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