JoyN (North Carolina)
Posts: 10
Posts: 10
Posted:
Can an HOA legally amend its covenants to prohibit owners from using their townhouses as Airbnb's?
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JonathanR1 (Georgia)
Posts: 54
Posts: 54
Posted:
Quote:
Posted By JoyN on 08/16/2017 6:27 PM
Can an HOA legally amend its covenants to prohibit owners from using their townhouses as Airbnb's?
Can an HOA legally amend its covenants to prohibit owners from using their townhouses as Airbnb's?
Yup. Before Airbnb, "vacation rentals" and this other term that I just can't remember were more in style, and they could be banned as "short-term rentals". In fact, an HOA can probably legally say that you can't rent out your property period (not even as a multi-year lease kind of things).
TimB4 (Tennessee)
Posts: 21,062
Posts: 21,062
Posted:
If there is enough support, yes.
Unless there is some State statute preventing it.
Unless there is some State statute preventing it.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
As Tim said, if the state statutes don't prevent it then the answer is "yes".
JayL6 (Kansas)
Posts: 18
Posts: 18
Posted:
We have this in our CC&R:
Section 5. Renting of Units. Leasing of homes shall not be allowed as a regular
practice for business, investment, or similar purposes. The Board of Directors shall be
empowered to permit reasonable leasing of homes upon written application to the Board. The
Board shall consider each application and may, in writing, permit the leasing of a living unit where
necessary to avoid undue hardship on an owner, his or her heirs, and mortgagee. Such
circumstances of hardship shall include those instances in which an owner must relocate his or
her residence and has difficulty selling the home. In no event, however, shall any home be
leased except pursuant to a written agreement approved by the Board of Directors.
a. This agreement is to include that the home be on the selling market the entire time of
lease except for in the case of lease with option to buy.
b. The home will only be allowed to be under lease with option to buy for one year. IF the
lease option expires and the house is not sold, the owner cannot accept another lease
option and the owner must reapply for leasing with the Board of Directors. This second
agreement will only be affirmed if the house is to be marketed the entire twelve months of
the agreement.
c. All agreements are for one year only and must be reapplied for, every twelve months.
d. The owner is required to provide information to the Board if lease changes in the course
of the twelve month period.
e. Subsequent requests to lease must be in writing no less than ninety (90) days prior to the
expiration of the leasing agreement.
f. All tenants and the guests are obligated to abide by xxxx Homes Association
Declarations, these bylaws and all Rules and Regulations of the Association.
Section 5. Renting of Units. Leasing of homes shall not be allowed as a regular
practice for business, investment, or similar purposes. The Board of Directors shall be
empowered to permit reasonable leasing of homes upon written application to the Board. The
Board shall consider each application and may, in writing, permit the leasing of a living unit where
necessary to avoid undue hardship on an owner, his or her heirs, and mortgagee. Such
circumstances of hardship shall include those instances in which an owner must relocate his or
her residence and has difficulty selling the home. In no event, however, shall any home be
leased except pursuant to a written agreement approved by the Board of Directors.
a. This agreement is to include that the home be on the selling market the entire time of
lease except for in the case of lease with option to buy.
b. The home will only be allowed to be under lease with option to buy for one year. IF the
lease option expires and the house is not sold, the owner cannot accept another lease
option and the owner must reapply for leasing with the Board of Directors. This second
agreement will only be affirmed if the house is to be marketed the entire twelve months of
the agreement.
c. All agreements are for one year only and must be reapplied for, every twelve months.
d. The owner is required to provide information to the Board if lease changes in the course
of the twelve month period.
e. Subsequent requests to lease must be in writing no less than ninety (90) days prior to the
expiration of the leasing agreement.
f. All tenants and the guests are obligated to abide by xxxx Homes Association
Declarations, these bylaws and all Rules and Regulations of the Association.
JayL6 (Kansas)
Posts: 18
Posts: 18
Posted:
We've accommodated owners who were transferred out of state temporarily for job training and military assignments.
JoyN (North Carolina)
Posts: 10
Posts: 10
Posted:
Thank you, Jay, for your detailed reply. Our community is a PUD of 275 homes which includes townhouses, duplexes, condos, and patio homes. When the housing market crashed, homeowners reduced list prices to the point that investors bought at fire sale prices, so we already have lots of rentals in the neighborhood. What we didn't have until this month was a townhouse being used as an AirBnB, and that's what we'd like to prohibit by amending our covenants. Too late to prohibit rentals. The landlords and property managers of the rental properties do background checks on prospective tenants, but with an AirBnB anyone can rent for one night or more. There are people coming and going all the time. The 2-bedroom townhouse is advertised on AirBnB to accommodate 6 people and says there is no charge for extra people. There is no personal contact with the owner --- the key is accessed by a lockbox on the front door.
DaveD3 (Michigan)
Posts: 796
Posts: 796
Posted:
Quote:
Posted By JoyN on 08/17/2017 5:42 AM
Thank you, Jay, for your detailed reply. Our community is a PUD of 275 homes which includes townhouses, duplexes, condos, and patio homes. When the housing market crashed, homeowners reduced list prices to the point that investors bought at fire sale prices, so we already have lots of rentals in the neighborhood. What we didn't have until this month was a townhouse being used as an AirBnB, and that's what we'd like to prohibit by amending our covenants. Too late to prohibit rentals. The landlords and property managers of the rental properties do background checks on prospective tenants, but with an AirBnB anyone can rent for one night or more. There are people coming and going all the time. The 2-bedroom townhouse is advertised on AirBnB to accommodate 6 people and says there is no charge for extra people. There is no personal contact with the owner --- the key is accessed by a lockbox on the front door.
Thank you, Jay, for your detailed reply. Our community is a PUD of 275 homes which includes townhouses, duplexes, condos, and patio homes. When the housing market crashed, homeowners reduced list prices to the point that investors bought at fire sale prices, so we already have lots of rentals in the neighborhood. What we didn't have until this month was a townhouse being used as an AirBnB, and that's what we'd like to prohibit by amending our covenants. Too late to prohibit rentals. The landlords and property managers of the rental properties do background checks on prospective tenants, but with an AirBnB anyone can rent for one night or more. There are people coming and going all the time. The 2-bedroom townhouse is advertised on AirBnB to accommodate 6 people and says there is no charge for extra people. There is no personal contact with the owner --- the key is accessed by a lockbox on the front door.
WHY do you want to limit what others can do with their own property?
TimM11
Posts: 354
Posts: 354
Posted:
The main issue with short-term rentals as they relate to HOAs is that they are prohibited for FHA mortgages and they will not approve any mortgages in a condo association that allows them. So, if FHA mortgage eligibility is important in your association, that needs to be considered. I've also read that it can make refinancing difficult as well, but that's less clear-cut from what I've read.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Our Covenants say no rentals for a period less then 6 months. They also say one cannot rent their home during their 1st year of ownership.
We have/had a situation or two but as the dues were paid on time and the people living there have never been a problem, we keep our eyes closed. The situations are parents purchasing a home and an adult child alone moves in. An adult child buying the home and a parent alone moves in. I do not know if our no rental the first year would cover this but as I said, no harm, no foul so we have ignored them. We also do not count them as rentals.
We have/had a situation or two but as the dues were paid on time and the people living there have never been a problem, we keep our eyes closed. The situations are parents purchasing a home and an adult child alone moves in. An adult child buying the home and a parent alone moves in. I do not know if our no rental the first year would cover this but as I said, no harm, no foul so we have ignored them. We also do not count them as rentals.
GreggT (Florida)
Posts: 77
Posts: 77
Posted:
You can amend but check with an HOA attorney to see if owners prior to the change are bound? It is very probable that they will be grandfathered in and be allowed to use their property as a short term rental.
By the way, Airbnb is a booking medium just like Home Away, VRBO etc, it IS NOT a type of rental!
By the way, Airbnb is a booking medium just like Home Away, VRBO etc, it IS NOT a type of rental!
TimM11
Posts: 354
Posts: 354
Posted:
Also, some local governments already ban short-term rentals, so in those places, it's not up to an HOA to regulate it.
GwenG (Florida)
Posts: 669
Posts: 669
Posted:
GreggT gave sound advice. It is likely that you will not be able to retroactively prohibit an owner from renting out their unit. You can probably change your Covenants, but it would be unlikely to apply to current owners. I am aware of an association in Florida that changed the Covenants in this respect, but the amendment does not apply unless the owner voluntarily agrees to the restriction--an opt-out for current owners.
Suggest you consider another way to control; this could get expensive for the association.
Suggest you consider another way to control; this could get expensive for the association.
FredS7 (Arizona)
Posts: 927
Posts: 927
Posted:
Quote:
Posted By TimM11 on 08/17/2017 7:09 AM
Also, some local governments already ban short-term rentals, so in those places, it's not up to an HOA to regulate it.
Also, some local governments already ban short-term rentals, so in those places, it's not up to an HOA to regulate it.
That may be true but that doesn't mean (1) that the HOA can't regulate and (2) the HOA can't be more restrictive.
About AirBNB- this is a new thing so limits are not in any older CC&Rs. However there may well be rules that apply to AirBNB. For example, a limit on short-term rentals clearly also covers this use.
By the way, in AZ a recent state law prevented cities from limiting short-term rentals. However existing HOA rules still apply. Fortunately.
TimM11
Posts: 354
Posts: 354
Posted:
Quote:
Posted By FredS7 on 08/17/2017 8:23 AM
That may be true but that doesn't mean (1) that the HOA can't regulate and (2) the HOA can't be more restrictive.
That may be true but that doesn't mean (1) that the HOA can't regulate and (2) the HOA can't be more restrictive.
Right. What I meant was that, in some places, they may already be banned regardless of what the HOA says.
DaveD3 (Michigan)
Posts: 796
Posts: 796
Posted:
Is an AirBNB booking even a "rental"?
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
Quote:
Posted By DaveD3 on 08/17/2017 6:31 AM
Posted By JoyN on 08/17/2017 5:42 AM
Thank you, Jay, for your detailed reply. Our community is a PUD of 275 homes which includes townhouses, duplexes, condos, and patio homes. When the housing market crashed, homeowners reduced list prices to the point that investors bought at fire sale prices, so we already have lots of rentals in the neighborhood. What we didn't have until this month was a townhouse being used as an AirBnB, and that's what we'd like to prohibit by amending our covenants. Too late to prohibit rentals. The landlords and property managers of the rental properties do background checks on prospective tenants, but with an AirBnB anyone can rent for one night or more. There are people coming and going all the time. The 2-bedroom townhouse is advertised on AirBnB to accommodate 6 people and says there is no charge for extra people. There is no personal contact with the owner --- the key is accessed by a lockbox on the front door.
Thank you, Jay, for your detailed reply. Our community is a PUD of 275 homes which includes townhouses, duplexes, condos, and patio homes. When the housing market crashed, homeowners reduced list prices to the point that investors bought at fire sale prices, so we already have lots of rentals in the neighborhood. What we didn't have until this month was a townhouse being used as an AirBnB, and that's what we'd like to prohibit by amending our covenants. Too late to prohibit rentals. The landlords and property managers of the rental properties do background checks on prospective tenants, but with an AirBnB anyone can rent for one night or more. There are people coming and going all the time. The 2-bedroom townhouse is advertised on AirBnB to accommodate 6 people and says there is no charge for extra people. There is no personal contact with the owner --- the key is accessed by a lockbox on the front door.
WHY do you want to limit what others can do with their own property?
Do YOU want to live next to or have a party home in your neighborhood?
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
Quote:
Posted By DaveD3 on 08/17/2017 8:48 AM
Is an AirBNB booking even a "rental"?
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
Is an AirBNB booking even a "rental"?
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
Many Airbnb rentals are devoid of the owner or someone in authority on the premises. The City of Las Vegas has passed ordinance to limit "party houses" and airbnb rentals.
The county however has yet to crack down. I worked at a condo high-rise where this started to happen, people would show up for the weekend dragging their cooler of beer through the lobby.. The people would treat the property like they were banging it up at a casino.
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
Dave, in our experience with an Airbnb situation with one of our clients, it is indeed a rental. The owner does not live in the unit at any time, he advertises it as available presumably 365 days annually on the Airbnb site, for periods of one night to ???
Aside from FHA financing issues which may be caused, there may also be insurance coverage issues, parking issues, etc. The Association Declaration specifically prohibits short term rentals of less than six months, the Association attorney is reviewing the proposed process for compliance notification and application of fines.
An added complication is a neighboring resident has stated to the board she "does not feel safe" with all the comings and goings of persons she does not know.
Aside from FHA financing issues which may be caused, there may also be insurance coverage issues, parking issues, etc. The Association Declaration specifically prohibits short term rentals of less than six months, the Association attorney is reviewing the proposed process for compliance notification and application of fines.
An added complication is a neighboring resident has stated to the board she "does not feel safe" with all the comings and goings of persons she does not know.
GreggT (Florida)
Posts: 77
Posts: 77
Posted:
Bill your post might or might not apply to the original post. I the situation you described the CCR's ALREADY prohibits short term rentals. In the OP's case obviously they do not. I would guess even if they change the CCR's I doubt if it would only prohibit the NEW owners from renting short term (at least in Florida that is the way it would be)
Again when one calls an "Airbnb" it generally means Home Sharing not a Vacation Rental, big difference. It might be advertised on Airbnb but that can mean many different things.
Again when one calls an "Airbnb" it generally means Home Sharing not a Vacation Rental, big difference. It might be advertised on Airbnb but that can mean many different things.
JonathanR1 (Georgia)
Posts: 54
Posts: 54
Posted:
Quote:
Posted By DaveD3 on 08/17/2017 8:48 AM
Is an AirBNB booking even a "rental"?
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
Is an AirBNB booking even a "rental"?
It's often constituted by a portion of a house being used by a paying guest while the owner is still in residence. That doesn't sound like a "rental" to me; at least not in the same sense as the above mentioned restrictions that require the owner live there for some period of time before renting. That suggests someone else living there in lieu of the owner.
For my 2 cents, it is according to the IRS.
JoyN (North Carolina)
Posts: 10
Posts: 10
Posted:
Thank you all for your answers and advice. Some of the newer condo developments in town have restrictive covenants that prohibit rentals that are shorter in duration than 30 days. Our development is 30 years old.
In this situation, the homeowner does not live there; she is advertising the entire townhouse as a nightly rental. She is advertising that the rental accommodates six people and there is no charge for extra people. This is a two-bedroom townhouse, and in our city there is a regulation against more than three unrelated people in a residence. The city zoning contact said that if we see more than three unrelated people staying there, we could report it to him for enforcement. But how do we know unless we ask every group that comes in?
The zoning person said that a citizen could ask the city council for a "text amendment" to the current ordinances, if we wanted the city to prohibit short term rentals.
The HOA board can enforce the current covenants and rules regarding parking, noise, etc. but it seems like the best avenue is to amend the restrictive covenants, which will be costly.
Meanwhile, the neighbors don't feel safe.
In this situation, the homeowner does not live there; she is advertising the entire townhouse as a nightly rental. She is advertising that the rental accommodates six people and there is no charge for extra people. This is a two-bedroom townhouse, and in our city there is a regulation against more than three unrelated people in a residence. The city zoning contact said that if we see more than three unrelated people staying there, we could report it to him for enforcement. But how do we know unless we ask every group that comes in?
The zoning person said that a citizen could ask the city council for a "text amendment" to the current ordinances, if we wanted the city to prohibit short term rentals.
The HOA board can enforce the current covenants and rules regarding parking, noise, etc. but it seems like the best avenue is to amend the restrictive covenants, which will be costly.
Meanwhile, the neighbors don't feel safe.
GreggT (Florida)
Posts: 77
Posts: 77
Posted:
Joy as has been mentioned a few times, before you go to the trouble of amending your docs, be sure it applies to ALL owners not just those purchased after the docs were amended. I am thinking those owners would be grandfathered in to do as they wish.
DaveD3 (Michigan)
Posts: 796
Posts: 796
Posted:
Quote:
Posted By BillH10 on 08/17/2017 12:16 PM
Dave, in our experience with an Airbnb situation with one of our clients, it is indeed a rental. The owner does not live in the unit at any time, he advertises it as available presumably 365 days annually on the Airbnb site, for periods of one night to ???
Aside from FHA financing issues which may be caused, there may also be insurance coverage issues, parking issues, etc. The Association Declaration specifically prohibits short term rentals of less than six months, the Association attorney is reviewing the proposed process for compliance notification and application of fines.
An added complication is a neighboring resident has stated to the board she "does not feel safe" with all the comings and goings of persons she does not know.
Dave, in our experience with an Airbnb situation with one of our clients, it is indeed a rental. The owner does not live in the unit at any time, he advertises it as available presumably 365 days annually on the Airbnb site, for periods of one night to ???
Aside from FHA financing issues which may be caused, there may also be insurance coverage issues, parking issues, etc. The Association Declaration specifically prohibits short term rentals of less than six months, the Association attorney is reviewing the proposed process for compliance notification and application of fines.
An added complication is a neighboring resident has stated to the board she "does not feel safe" with all the comings and goings of persons she does not know.
Why does it matter how a neighbour "feels". Does said neighbour know EVERY other resident in the entire development, or are their other people she does not know coming and going, except they happen to be residents?
The only times that I have used Airbnb were to stay in a portion of a home that was also occupied by the owners who were offering "BNB" Bed "N' Breakfast
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Depending on the CCRs it might also fall under "operating a business" on the property which many associations prohibit aside from and in addition to any restrictions on leasing.
JohnC46 (South Carolina)
Posts: 14,265
Posts: 14,265
Posted:
Quote:
Posted By GenoS on 08/17/2017 7:59 PM
Depending on the CCRs it might also fall under "operating a business" on the property which many associations prohibit aside from and in addition to any restrictions on leasing.
Depending on the CCRs it might also fall under "operating a business" on the property which many associations prohibit aside from and in addition to any restrictions on leasing.
Interesting observation. Many municipalities are requiring Airbnb to register as a business and collect lodging taxes. If so in your municipality, this might be a way to stop them as they are operating a business in their home.
PitA
Posts: 1,416
Posts: 1,416
Posted:
Do YOU want to live next to or have a party home in your neighborhood?
YES YES YES
At least then I would know the neighbors were living.
I am presently 'stuck' inside my self induced 55+ senior prison community.
My 'dream residence', hopefully soon, would be a rental home in Jacksonville BEACH.
(University of Florida territory)
GwenG (Florida)
Posts: 669
Posts: 669
Posted:
OMG PITA you are too funny!
Good luck in your new messy beach rental home... I think I get it. I now thrive in a rustic, northern Coastal California rental community that is a refreshing relief from the (self-induced) grim and hostile senior community I left in Florida!
Good luck in your new messy beach rental home... I think I get it. I now thrive in a rustic, northern Coastal California rental community that is a refreshing relief from the (self-induced) grim and hostile senior community I left in Florida!
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Grim and moribound.
PitA
Posts: 1,416
Posts: 1,416
Posted:
Grim - yes, self induced
Moribound - not juussssst yet, still mow and trim weekly
sheeeesh
Moribound - not juussssst yet, still mow and trim weekly
sheeeesh
PitA
Posts: 1,416
Posts: 1,416
Posted:
oops, just 'got it'
moribound referred to your PREVIOUS community
I, personally, am fighting the 'hostile' part of aging.
trying NOT to become the 'crotchety old man'
it is a hard fight when one is surrounded
I have verified my lack of sanity by moving INTO a 55+ community
moribound referred to your PREVIOUS community
I, personally, am fighting the 'hostile' part of aging.
trying NOT to become the 'crotchety old man'
it is a hard fight when one is surrounded
CROTCHETY: subject to whims, crankiness, ill temper, odd notions, whims, grouchiness and capriciously stubborn or eccentric.
OLD FART: a person who is regarded as being set in his or her ways and lacking a sense of humour.
What a combination that doth make! Put them together and what have you got – well certainly not, “Bibbidy-bobbidy-boo!”
No, what you have is someone who might get profiled on, “America’s Most Wanted.”
OLD FART: a person who is regarded as being set in his or her ways and lacking a sense of humour.
What a combination that doth make! Put them together and what have you got – well certainly not, “Bibbidy-bobbidy-boo!”
No, what you have is someone who might get profiled on, “America’s Most Wanted.”
I have verified my lack of sanity by moving INTO a 55+ community
TimM11
Posts: 354
Posts: 354
Posted:
I don't live in a 55+ community, but mine seems like it's doing it's best to become one by not making any younger people want to live it due to excessively restrictive rules and intrusive enforcement. We're less expensive than a lot of nearby complexes, which should draw more younger buyers, and I think that worries some of the longer-term residents. I want a range of ages and backgrounds of people to feel comfortable living here, but not everyone seems to share my view.
Anyway, personally, I don't care about short-term rentals, but the FHA feels differently.
Anyway, personally, I don't care about short-term rentals, but the FHA feels differently.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
We have a no-tranisiant occupancy clause in our CC&R, but no specified time, Our HOA Gen. counsel could find support for no more than a 7-day lid, but the Board voted for a 30 day cap. $1,000 fine with potential to double for every repeat infraction. So....we only have rare instances.
We're an urban high rise short blocks from lots of attractions that really draw short-timers & weekenders. BUT these:
1. Take away from the residential character of our vertical 'hood.
2. Generate a lot of elevator traffic with luggage, etc.
3. The short-timers often don't bother reading the rules leading to misuse of the pool area. Glass containers, anyone? Shouting & roughhousing? Wandering the lobbies with dripping bathing suits?
4. Cars are no problem as most would take a cab here.
We're an urban high rise short blocks from lots of attractions that really draw short-timers & weekenders. BUT these:
1. Take away from the residential character of our vertical 'hood.
2. Generate a lot of elevator traffic with luggage, etc.
3. The short-timers often don't bother reading the rules leading to misuse of the pool area. Glass containers, anyone? Shouting & roughhousing? Wandering the lobbies with dripping bathing suits?
4. Cars are no problem as most would take a cab here.
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
Dave
Regarding the feel safe comment, the issue is: an 11 unit condo. Very small but in an area of town in a transition and located close to a secondary airport and easily accessible to various "districts" and attractions of this city.
Should some misfortune befall this owner, and it is subsequently learned the Association had been informed of her discomfort regarding the ‘strangers/traffic’ due to AirBnB, which although not explicitly called out by name in the Declaration, but is still in violation of the Governing Documents, what do you think the Association exposure liability will be if it cannot be proven the steps the Association has taken to address the issue?
Regarding the feel safe comment, the issue is: an 11 unit condo. Very small but in an area of town in a transition and located close to a secondary airport and easily accessible to various "districts" and attractions of this city.
Should some misfortune befall this owner, and it is subsequently learned the Association had been informed of her discomfort regarding the ‘strangers/traffic’ due to AirBnB, which although not explicitly called out by name in the Declaration, but is still in violation of the Governing Documents, what do you think the Association exposure liability will be if it cannot be proven the steps the Association has taken to address the issue?
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
There have been court cases, as Bill might point out, where condo boards have certain hazards pointed out to them & documented, but ignored them. The HOAs have been liable if a resented has been harmed. don't know if part-timers represent such a hazard, but liability should be a ocher, it seems.
DjB2 (Pennsylvania)
Posts: 49
Posts: 49
Posted:
Our 35-year-old Bylaws and CC&Rs prohibit any and all short term rentals, thank goodness. In the last 35 years only one new absentee owner of a rental unit has asked about this possibility. Their inquiry was a few months ago. Our response was we politely quoted chapter and verse back to them from our documents stating short term rentals are not permitted. That was the end of that, and shortly thereafter they obtained a long term lease tenant.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Quote:
Posted By GenoS on 08/17/2017 7:59 PM
Depending on the CCRs it might also fall under "operating a business" on the property which many associations prohibit aside from and in addition to any restrictions on leasing.
Depending on the CCRs it might also fall under "operating a business" on the property which many associations prohibit aside from and in addition to any restrictions on leasing.
Only a few days after I posted that an article was published -> here <- about a recent decision by Florida's First District Court of Appeal. The court ruled that an associations ban on "operating a business" did not apply in the case of owners who were renting out their units short-term through VRBO.
So much for that argument.
JoyN (North Carolina)
Posts: 10
Posts: 10
Posted:
Thank you, GenoS. Good timing on your update --- our Board had thought maybe the covenants' ban on "operating a business" might be the ticket, but looks like a dead end. We are not a resort destination, but we do have a university. We think the main users of Airbnb would be sports fans coming into town to attend games. Football season starts next week. Our townhouses, condos, and patio homes are in a quiet residential neighborhood, not a rowdy student rental area.
GenoS (Florida)
Posts: 4,276
Posts: 4,276
Posted:
Just keep in mind, Joy, that that court decision is only applicable in Florida. Other states' courts and judges will sometimes refer to out-of-state cases in making their decisions, but they're not required to do so and what an appellate court in Florida does generally doesn't carry any weight in other states.
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