What is the impact of www.airbnb.com type nightly rentals?

Started by FrankF3 • 5 replies • 1623 views

💬 Join us to post & get advice from 50,000 HOA & Condo leaders.

⚡ Takes 30 seconds

Already a member? Log in

FrankF3 (Indiana)
Posts: 65

Posted:

Do you have any links to evidence demonstrating that www.airbnb.com type nightly rentals within a condo project have any worse effect on loan approvals or property values than conventional rentals?

I would *think* nightly rentals to be more problematic, but our own lending agent basically says a rental is a rental and the primary concern is the percentage of owner-occupied units.

FYI: Ours is an Indiana apartment type condo (4 units per street entrance door).

RogerB (Colorado)
Posts: 5,067

Posted:

FrankF3, I suggest you review your Covenants to determine any restrictions on leasing. All I have read do not allow nightly rentals; they require a lease of atleast 30 days.

KerryL1 (California)
Posts: 14,550

Posted:

Even our CC&Rs, which are vague at best, say our condos may not be used for "hotel, motel or transient Purposes..." Our HOA attorney has defined "transient" as 7 days or fewer, but our Board voted a couple of years ago to define transient as fewer than 30 days.

Our PM skims the typical sites for short-term rentals, such as airbnb and keeps an eye on the condo. even if the ad says minimum stay of 30 days, prospective tenants can get in for fewer days. We do call violators to hearing.

But I agree with Roger: a rental property is a rental property and that's what lenders care about: the % of your HOA that are rentals.

TimB4 (Tennessee)
Posts: 21,059

Posted:

I also agree with Roger.

To help minimize any affect, you may want to consult with local officials as nightly rentals may be considered running a hotel and be subject to hotel taxes. Of course that would be an issue for the owner, not the Association.

FrankF3 (Indiana)
Posts: 65

Posted:

Unfortunately, our foundation docs n Rules say little about restricting rentals (Rule: only 2 unrelated adults) and getting an amendment passed ain't gonna be easy. No offense, but the question is really about me gathering info (facts, professional articles, etc.) re impact of nightly rentals. The city hasn't categorized these rentals and is dragging its feet. Other than that, things are hunky dory.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Frank

I believe that many owners would vote against short term rentals as they do not want "overnight" transients with little to no respect for your property. Now the question becomes what is short term?

🎯 You've read this entire discussion

Join the conversation with 50,000 HOA & Condo Leaders:

✓ Ask follow-up questions
✓ Share your experience
✓ Get expert advice
✓ Access 350,000 discussions

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in here