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TimB4 (Tennessee)
Posts: 21,061
Posted:
A recent news article on this sites' news feed said "The Brawl Over Airbnb Is Back On"
Since there have been more then a few discussions on this issue, it's inevitable that if you are on the Board of an Association, you may need to address this issue at some point in time.

Having short term rentals within your development may or may not create problems.
This is simply a place to discuss them.

I have done very little research on the topic, as I have not had to personally deal with the issue.
Many of the research available is negative. Some is positive but most of those were advertising books or pamphlets about making it rich. Therefore, I didn't include them.

However, here is some of what I have found:

The Brawl Over Airbnb Is Back On the 2017 article in Habitat Magazine (linked to from the news feed).

Airbnb and Your Building: Prevention, Detection, and Remedies for Landlords pdf file from a NY attorney

Legal Restrictions to Renting Your Home on Airbnb or Other Rental Services from Nolo

How should I talk to my neighbors, homeowners association, or landlord about Airbnb? Airbnb help file

Adam Ruins Everything - Why Your Airbnb May Be ILLEGAL YouTube Video (segment from a tv show I happened to see last night)

As I said, I've personally never dealt with this situation either as a neighbor, customer, host or board member. Therefore, I don't feel I really have enough information to make a good decision. I expect this may be the case for others who utilize this forum. Hence, the reason for this thread is simply to try and group information from those who may have found an article or two or have first hand experience.
DouglasM6 (Arizona)
Posts: 724
Posted:
Personally, I don't see how it's any of the Boards business unless short term renting is mentioned and prohibited in the docs.
SheliaH (Indiana)
Posts: 6,964
Posted:
Some HOAs are concerned about wear and tear on the common area, as well as noise from all the in and out and not really knowing whothehell lives in the house. Face it, some people really don't know how to behave or figure just because they're paying to stay somewhere, they can treat the place any way they damn well please!

Recently, the city council in Carmel, IN put forth a proposal to ban Airbnb, which has raised a considerable amount of stink - here's a link to that story: http://www.indystar.com/story/news/local/hamilton-county/2017/01/23/carmel-put-airbnb-homeowners-bind/96775766/

I believe somebody in the state legislature has now proposed a bill to ban such bans. We're halfway through the session, and I really haven't kept up with the issue, so who knows what'll happen (the fight's currently brewing over the state budget anyway)

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GenoS (Florida)
Posts: 4,276
Posted:
Quote:
Posted By DouglasM6 on 02/27/2017 12:12 PM
Personally, I don't see how it's any of the Boards business unless short term renting is mentioned and prohibited in the docs.

If the issue has the potential to cause problems in the future because it's NOT in the docs then I think boards that research the issue for the purporse of possibly proposing doc amendments are being proactive and responsible.
MichelleK5 (New York)
Posts: 161
Posted:
We have this issue in my high rise in NYC (Manhattan).

People are constantly renting our their apartments and the vacationers treat the building as a hotel. My building has an outdoor swimming pool.
The "guest" run around the lobby in their bathing suits, getting everything wet during the day in the summer, then get drunk at night and try to pet our dogs.. lol. It would almost be comical if it wasn't so annoying. Like elevator wait time has gone up from just a a minute or two, to upwards of 6 minutes (35 story building) because of the tourists. That's a lot when trying to get to work.

This can also be a huge issue in HOA's where most of the members are second home owners, and are generally only there in the summers/weekends. That's the case with my HOA- it's a lake community with less than 40 homes, one of which was constantly being rented every summer. Sometimes you didn't even realize anyone was there, other times the "guests" were sooo loud, you could hear them up the road. You can't fault them either, it's their vacation.

We had one family who lived next door to that house and would call the police if there was any noise after 10. I was told there was an ongoing battle between these neighbors.
But, the rental owner finally put the house up for sale a few months ago. I know many people are hoping the next owner won't rent.

My board still won't put anything in the by-laws about rentals though since it's never been a huge problem.
TimB4 (Tennessee)
Posts: 21,061
Posted:
Quote:
Posted By DouglasM6 on 02/27/2017 12:12 PM
Personally, I don't see how it's any of the Boards business unless short term renting is mentioned and prohibited in the docs.

Agree that their need to be some form of rental restrictions within the CC&Rs.
Otherwise the Association likely has zero authority over the issue.

As for why it may be the Boards business, regardless of the CC&Rs, I will cite from a California case, Watts v. Oak Shores, where some of the testimony included:

The Association's general manager testified that based on his discussion with Board members, staff and code enforcement officers, as well as his review of gate and patrol logs, short-term renters cause more problems than owners or their guests. The problems include parking, lack of awareness of the rules, noise and use and abuse of the facilities. Expert James Smith testified that, unlike guests
who are typically present with the owners, short-term renters are never present with the owner. Guests tend to be less destructive and less burdensome. Short-term renters require greater supervision and increase administrative expenses


KerryL1 (California)
Posts: 14,550
Posted:

Tim cited: "...short-term renters cause more problems than owners or their guests. The problems include parking, lack of awareness of the rules, noise and use and abuse of the facilities. Expert James Smith testified that, unlike guests who are typically present with the owners, short-term renters are never present with the owner....Short-term renters require greater supervision and increase administrative expenses."

If we had a lot of short termers in our 200+ condos, our elevator, custodial expenses certainly would increase as well as wear & tear on our corridor carpeting, lobby furniture, poolside furniture, etc.

Those are the main reasons our board approved a rule change limiting rentals to 30 days a few years ago. Our urban twin high rises are very near many attractive event venues and convention hotels & a facility. Our CC&Rs already prohibited condo use for transient purposes. We decided less than 30 days was "transient."

Our fine for violation is $2,000 per incident with the probability of being doubled for repeat offenses. It originally had been only $500, but a condo here can easily get $2,000 for 3 nights, so we upped it.
PitA
Posts: 1,416
Posted:
Quote:
Posted By DouglasM6 on 02/27/2017 12:12 PM
Personally, I don't see how it's any of the Boards business unless short term renting is mentioned and prohibited in the docs.

or the operation of a business which changes the occupancy of the unit from residential to commercial
DouglasM6 (Arizona)
Posts: 724
Posted:
Quote:
Posted By PitA on 02/27/2017 7:15 PM

or the operation of a business which changes the occupancy of the unit from residential to commercial

No, the rental property does not become commercial property. Renting a property also does not constitute “running a business within the property”.

Quote:
Posted By TimB4 on 02/27/2017 3:08 PM

Agree that their need to be some form of rental restrictions within the CC&Rs.
Otherwise the Association likely has zero authority over the issue.

As for why it may be the Boards business, regardless of the CC&Rs, I will cite from a California case, Watts v. Oak Shores, where some of the testimony included:

The Association's general manager testified that based on his discussion with Board members, staff and code enforcement officers, as well as his review of gate and patrol logs, short-term renters cause more problems than owners or their guests. The problems include parking, lack of awareness of the rules, noise and use and abuse of the facilities. Expert James Smith testified that, unlike guests
who are typically present with the owners, short-term renters are never present with the owner. Guests tend to be less destructive and less burdensome. Short-term renters require greater supervision and increase administrative expenses


The people staying at/renting the property are subject to the same rules the owners are/were when they stayed there. The Board needs to enforce the rules. In most cases, a rental doesn’t require any additional parking simply because it’s a rental.

Short term residents can be unruly. That I will have to agree with. But if the owner of the property is held accountable for the actions of the renters, the problem will solve itself. Usually.
This is a good discussion. I may talk to the Board about this to see if we should add some verbiage to CC&R’s.

KerryL1 (California)
Posts: 14,550
Posted:
You're right about the parking, at least in my HOA as it's all assigned. But we do have some Visitor Parking that might be affected, on one hand. On the other, most guests and likely short terms would use Taxis from the airport & not need cars to come to my HOA.

We have about 12% part time owner/occupants who'd most likely rent out their units short term. We have about 25% landlords. IF a large % of these did Airbnb, etc., the wear & tear, as mentioned above, would be substantial. And, we'd have to probably hire more security to monitor the pool, gym & billiard room. And while our Board does enforce rules of conduct, it's burdensome for us residents to have to phone security a lot to complain about glass containers at the pool, people dripping wet in the elevators after using the pools, etc. Note these create hazards as well. But these would be less the case in detached homes.

I do think in our case, and this was part of the issue when we made our rule and had had some short termers is the sense that we don't know our neighbors. A lot of new faces--strangers-- and constant turnover would change our homes from a (vertical) neighborhood to a sense of disconnection--who ARE these people??? The residential feeling of our HOA would be damaged.

RichardP13 (California)
Posts: 3,868
Posted:
I have had this happen to an association a couple of years ago. It was a 14 unit complex, close to the airport and a Board member was using AirBnB everytime they went to Europe, which was once a month. The other two Board members did nothing and a couple of other residents decided to follow suit. They didn't have the money to take legal action.

If you don't live in an association I don't have a problem. If you don't pay the proper income taxes that is on you.

On the other-hand, people doing it in an association many times are taxing the assets of the association running a business that is visible to others. The rules that you can have a business in your home is old. If you have consulting business where you visit client versus them visiting you is perfectly fine and acceptable. Running a tax business out of your home handling 3000 returns does pose a problem. If you live in a gated community or a high rise with a locked and coded door, you/they are taxing the systems. If you have a community pool and your paying guest have an accident, who is at fault. This is a HOA, not a hotel. Most CCRs prohibit short term or transient rentals. People argue that the rules shouldn't apply to them
JanetB2 (Colorado)
Posts: 4,219
Posted:
In my area they also need to apply for a Conditional Use Permit from the City. However, the City is giving them easily due to receiving "lodging tax" for the rentals. The local ordinance does state that the HOA CCR's must allow short term rentals. Tthis last year when I was on Planning Commission one of the permits coming through the City was trying to say that a letter from the Board that they did not see any issue was OK. However, the room full of angry homeowners from the subdivision stated differently. I was able to convince my fellow commissioners that was wrong and the Application was put on hold until the Owner and HOA took steps to properly amend their CCR's.

Just a heads up to see if your local government ordinances may help cover the issue.
BobD4 (up north)
Posts: 1,002
Posted:
In sequence is a series of different single family usages at one time, any different from the SAME single family using a unit all year long ? In highrises many think so big time. They may be correct.

If your jurisdiction has not legislated banning such AiBnB type sequences, the opponents would be well advised to look hard within the Declaration for enough to work with.

In mine, de-constructing a Declaration that prohibits all usage but laconic "single family usage only", a judge recently ruled expansively that short term sequences of single family users in a hotel-like operation, DO NOT constitute 'SINGLE FAMILY'. But enforcing such is another matter.
KerryL1 (California)
Posts: 14,550
Posted:
In resort towns near us, single family owners think that frequent changes of residents affect them negatively, Bob. The reports I see in our local news complain about noise, and parking issues when a lot of different occupants might be in and out. A detached long-term home may have, say 2 adults & 2 kids, but rented out short term it may have 6 or even more adults. This, just like in our high rise, puts extra people in the recreational amenities, like pools, and also create more entries & exits at drive through gates. In action, I presume that many owners of these have housekeeping crews after every rental coming & going.

Some short timers also may not bother to learn the rules about using the pool, tennis courts, ect. Sure, the Owners also can be called to hearings, etc., but that disrupts everyone's time
PitA
Posts: 1,416
Posted:
No, the rental property does not become commercial property. Renting a property also does not constitute “running a business within the property”.


Wrong, according to the Internal Revenue Service

The property ITSELF becomes commercial - albeit in a residential 'zone' - therefore against the code(s)
BobD4 (up north)
Posts: 1,002
Posted:
Quote:
Posted By KerryL1 . . . noise, and parking issues when a lot of different occupants might be in and out. . . . more entries & exits at drive through gates. In action, I presume that many owners of these have housekeeping crews after every rental coming & going. . .

Another disturbing aspect is that multi-storey building access FOBS - although conventional controlled circulation conventional keys might be kept for unit doors - can be copied for peanuts. Urban core locksmiths do electronic FOBS here for $ 35 ( but reportedly it imbeds the original code) .

How many AirBnB FOBS simply walk away or are used by 'piece-work' unit refurbishers ?

Further, NO matter what gets pleaded to condo owners or to tenants in rental buildings, many don't bother locking their unit door. A time bomb albeit from sources wider than just AirBnB . .
MichelleK5 (New York)
Posts: 161
Posted:
In NYC, rentals less than 30 days aren't allowed. But no one enforced it here.

However, there's a new way to get around it now. If you're "hosting" a traveler, it's perfectly legal. So these days, the new thing here
is to be a host. Even though, the reality is you're only there to "host" when they first arrive. The host then disappears for the length of the tourists stay.

Impossible to enforce in rentals, and very difficult to enforce in condo's here.
LindaK5 (California)
Posts: 242
Posted:
I have to agree with PitA ...... running an Airbnb is considered commercial activity.

Our governing docs don't allow for less than 30 day rental. As I'm sure all of you know, we've had a problem with a homeowner renting a room on a daily basis.

It's not just about wear and tear - how about liability? We queried our insurance company and they said if the Association allowed this type of use, they wouldn't insure us anymore. Just think of someone renting short term (as in renting a room for a few days) ... hurting themselves and eyeing the Association as a deep pocket. Not a good thing.

As antiquated as our governing docs are, at least they were smart enough to include "short term rental"!
MichelleK5 (New York)
Posts: 161
Posted:
LindaK5 -

What if a guest of a condo owner gets hurt in one of the common areas? Does your insurance cover them? Because that's what people are doing now, they're calling them guests, and they're hosting.
Since it's perfectly legal, the less than 30 day rental rule wouldn't apply.
New York city has that same rule, but it can't be legally enforced when someone is a guest in your home.

You would have to prove they're paying, and that particular owner is running a business. That's not easy.
SheliaH (Indiana)
Posts: 6,964
Posted:
This is a great discussion – thanks, Tim, for getting it started.

The Airbnb situation is a great reminder to HOA boards and the people who live in them that life is fluid – what worked years ago may not be effective now, and as times and people change, communities must prepare for that and consider how those changes will impact them and the best way to address it. There isn’t one answer for every community, but having a decent conversation on the issues (without screaming, cussing or threatening lawsuits all the time!), asking questions, doing some research and debating the pros and cons of any action is how adults should address these issues.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
JH6 (Virginia)
Posts: 30
Posted:
I was inspired to look for units in our building the other night given articles related to that and a surprising uptick in noise complaints and fighting (?!) in our building; found about 5% of our units available on AirBnB. It's all mostly mid 20-somethings who bought the places for the express purpose of renting them out. This is very clearly against our CC&Rs, and it's a bad idea since it's an access-controlled building. Personally, I prefer to let people do what they want as long as it doesn't significantly intrude on others' enjoyment of their units or cause a health / safety issue, but we've clearly crossed that line at this point. You want to screw up your own house, that's lovely; but one of the AirBnb tenants got in a fight with someone in the building.

We sent this to the association's lawyer who will send cease and desist letters. Failing that, we'll just ask for the lawyer to pursue some sort of court order requiring them to remove the ad from AirBnB (which should be enough to kill the business) and then bill back all legal fees and court costs back to the unit owners. I imagine this will be far more effective than wasting time with piddly fines and fees. I guess we'll find out if we can do that. All documentation, pictures, notes, profiles, etc. have been saved for future reference. Unless they do a gut renovation and change the views from the building, they'll be found out very quickly if they repost the ad.
KerryL1 (California)
Posts: 14,550
Posted:
Change your fines, JH, so they aren't "piddly. Make the first one about the $$$ they make with a 3-day weekend rental. Board vote should do it. Ours are $2,000 1st incident with potential to double thereafter. Another nearby one is $5,000. Cheaper than paying an attorney.
MichelleK5 (New York)
Posts: 161
Posted:
How do you enforce it when the tenant says they're not a paying guest?

In my neighborhood (NYC), the ads these days do not give an an exact address. Just a few pics and a general description with a price and an email. These people know their neighbors are checking up on them and are doing everything they can to circumvent the issue. Going after the owner is nearly impossible without proof.
All they have to say is it's a friend, a relative, a friend of a friend or whatever. The condo would have to prove it's a business. Neighbors can claim people come and go until they're blue in the face, they still don't have proof it's a business.

It's a huge issue here, and so far, it's nearly impossible to do anything about it.

But, if anyone has actually caught someone doing it, and fines have worked, I'd be very interested in hearing about it.
JH6 (Virginia)
Posts: 30
Posted:
Quote:
Posted By KerryL1 on 03/14/2017 4:20 PM
Change your fines, JH, so they aren't "piddly. Make the first one about the $$$ they make with a 3-day weekend rental. Board vote should do it. Ours are $2,000 1st incident with potential to double thereafter. Another nearby one is $5,000. Cheaper than paying an attorney.

I made a mistake, they're in the by-laws and not the CC&Rs. Can't change the fines easily, at least according to the association's lawyer, the bar for that is very high in our state. I'm sure Tim can attest to that. Obviously just changing the fines would be an easier solution. Honestly, whatever gets the job done is fine with me (pun intended).
KerryL1 (California)
Posts: 14,550
Posted:
Fines' amounts are in your bylaws, JH? So there'a an actual fine a mount for rentals fewer than x days?? What is it?
KerryL1 (California)
Posts: 14,550
Posted:
Around these parts, Michelle, the address is in the airbnb ad & sometimes pics, so that's how we know it's not a "friend or relative." Sicne we upped th go fines, we get maybe one attempt/year that we know of. Do a few slip thought? Possibly. Our Asst. GM, does scour the ads every so often.
LetA (Nevada)
Posts: 2,679
Posted:
I would say that the CC&R regs that prohibit commercial business from being run in the community would cover at least one aspect of this problem.
I can tell you that here in Las Vegas this has become an issue. The City of Las Vegas and Clark County have adopted "party house" ordnances
that limit a rental to a minimum of 90 days. Residents in both HOA and non HOA communities have complained about new people every weekend from drunken and disorderly conduct, fights with shots fired and the daily renters destroying neighboring properties.

AirBnb's infringe on the rights of people that live in their homes, raise their families and don't want to live in a commercial or rental community.
These are had to enforce and you need 24-7 properly trained security to both spot it report it to the governing bodies.
JH6 (Virginia)
Posts: 30
Posted:
Quote:
Posted By KerryL1 on 03/14/2017 8:35 PM
Fines' amounts are in your bylaws, JH? So there'a an actual fine a mount for rentals fewer than x days?? What is it?

There are fines in the by-laws. Fines are listed at $50 per infraction of the by-laws or policy resolutions, $10 a day for ongoing issues, generically applied to violation of any provision of the by-laws. Now that I think about it though, the move-in and move-out fees are more likely to cause serious pain; they're orders of magnitude larger.
BobD4 (up north)
Posts: 1,002
Posted:
This topic has generated good comments. A not-infrequent accusation in the AirBnB debate here is that only NIMBY's are beefing about AirBnB usage ( that is if such is illegal or in violation of covenants etc ).

Or that most activity is intermittent and merely "gets the mortgage paid".

Unfortunately that's not the end of the story. Credible research is beginning to indicate that conventional rental housing is being removed from the market to tap into more profitable AirBnB demand ( we have a form of rent control ).

Hotel/motel industry sources are beginning to beef about having to charge travel-related levies & observe fair wage practices , make deductions etc. This might be fair or not , but

Whatever it is AirBnB is not without some victims. Those victims aren't just within condos & HOAs.
ToniL1 (Oklahoma)
Posts: 1
Posted:
We are in a gated community of 23 homes. One of the homes was purchased by someone under a corporate name and has been using it for short term rentals. For the past year, it has been on the market for sale, but he has been renting it just for a night or weekend to anyone. These "air-bnb" type folks are given the security code to our gate. Mostly, we have noticed that 3-4 cars will be there overnight for parties. Our neighborhood is comprised of a lot of single older women and this activity has become problematic for the residents. Not to mention a safety hazard with cars parked in the street impeding the mail delivery. QUESTION: The CCr mentions "lots are only for single residential purposes only. Lease or rental of a lot for residential purposes is not a violation". Can the HOA board propose a vote to the homeowners to add to the Rules and Regulations a rule that limits rental property to no less than 6 months in order to keep traffic down and security of our gated community? If we can vote to add this to our rules & regulations, does it have to be done at the annual meeting or can we do a special vote? Thank you

Quote:
Posted By BobD4 on 03/18/2017 4:52 PM
This topic has generated good comments. A not-infrequent accusation in the AirBnB debate here is that only NIMBY's are beefing about AirBnB usage ( that is if such is illegal or in violation of covenants etc ).

Or that most activity is intermittent and merely "gets the mortgage paid".

Unfortunately that's not the end of the story. Credible research is beginning to indicate that conventional rental housing is being removed from the market to tap into more profitable AirBnB demand ( we have a form of rent control ).

Hotel/motel industry sources are beginning to beef about having to charge travel-related levies & observe fair wage practices , make deductions etc. This might be fair or not , but

Whatever it is AirBnB is not without some victims. Those victims aren't just within condos & HOAs.

SheliaH (Indiana)
Posts: 6,964
Posted:
Read your documents. If you want to amend the CCRs, they probably require a certain percentage of homeowners to approve the change. You could hold a special homeowner’s meeting to vote or do so at the annual meeting, although I’d recommend a special meeting (the annual meeting has enough going on with people presenting annual reports and board elections).

In the meantime, if this homeowner’s guests are causing problems like lots of noise, trash, parking etc., your board needs to enforce the rules relating to those issues – it’s not about picking on him, but the rules are there for a reason. In fact, bad behavior by some Airbnb guests is a big reason why so many communities are wrestling over Airbnb rentals. Since Airbnb is probably here to stay, every community will have to think about how they want to address it – what works for your community may not work for mine, so this guy’s rentals is a good opportunity for your community to discuss the issue in details and come out with some ground rules everyone can live with.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius
GenoS (Florida)
Posts: 4,276
Posted:
Not sure about Oklahoma, but in Florida any restrictions on rentals and leasing must be in the CCRs because such restrictions affect an owner's right to otherwise do whatever he wants with the property. Also, in Florida, any amendment to the CCRs in this regard affect only those who buy into the association after the amendment has been passed. Some years back in south Florida a condo association tried to implement rental restrictions by changing their Rules & Regulations. They were challenged and they lost when the court ruled that an owner's rights can't be screwed around with by tinkering with the Rules & Regulations.

You should review what the Oklahoma laws and statutes say.
JohnC46 (South Carolina)
Posts: 14,265
Posted:
See the headline article about AirBnB kicking back part of the rental to the HOA.

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