A service of:
Community123.com
Professional websites for HOAs & condos, since 2004
🎁 1st year FREE for HOATalk members! →
← Return to Topics List

Short Tern Rentals

Started by LetA • 14 replies • 282 views

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

Create Free Account →

⚡ Takes 30 seconds

Already a member? Log in

LetA (Nevada)
Posts: 2,679
Posted:

It's Going Down, the City of Las Vegas isn't mucking around anymore.

It's bad enough when your renters are a nightmare, but this is a nightmare
that makes clowns look like a Sunday School Deacon.

https://www.fox5vegas.com/2024/01/23/180000-fine-illegal-short-term-rental-las-vegas/

We have been told by our PM and council that the clause in our CC&Rs that states all rentals
must be a minimum of 6 months or 180 days is solid grounds that we can fine owners for operating
short-term rentals in the community.
TimB4 (Tennessee)
Posts: 21,062
Posted:
The article you provided was good. However, it talked about the City/County code enforcement office. Before your Association imposes monetary penalties, verify you actually can.

My understanding is that Associations can encounter an issue if they impose monetary penalties if the CC&Rs don't specifically allow it.

Often, the CC&Rs specify enforcement via the courts (and nothing else is mentioned).
If this is the case for your Association, you could face legal challenges if someone wants to take that route.

Subject: VA Associations, Do you still have the authority to use monetary penalties for violations? Note: Links in this thread are bad but include the title of the applicable cases.

I mentioned the issue in a different thread where I uploaded the court opinion and order as attachments:
Subject: Examples of HOAs that lose court battles

MelissaP1 (Alabama)
Posts: 13,836
Posted:
The PM is NOT legal source. You have to go with your local/city laws first. There are cities that restrict short term rentals in their limits. We have a city near us that does. A few local politicians got busted for it when found out they had some...

Also very few states have actual rental restrictions in place for any HOA. It goes a bit higher than just local. It can be a state law as well. Only official state I know is California that has an official rental restriction laws. That is even not that very old.

I know many people will argue because it is written in your CC&R's it's the "law". Unfortunately that isn't true. A good lawyer can fight it if push comes to shove.
Former HOA President
LetA (Nevada)
Posts: 2,679
Posted:
As stated, our council already said 6 months 180 days minimum regardless if it's an STR or a
standard rental. Now that STRs need to be licensed and approved just puts the onus of enforcement on
the local jurisdictions back. And Yes it will give the HOA the teeth to bite and bite hard.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
How? Liens and foreclosure not basis for fines. Liens maybe with fancy accounting. I would set my rent enough to pay the fines. You can not just grab a fine amount out of the air. It has to have real numbers involved. Otherwise the HOA could be paying taxes as fines are not a source of income for a HOA. It is a punitive charge.
Former HOA President
TimB4 (Tennessee)
Posts: 21,062
Posted:
Quote:
Posted By LetA on 01/24/2024 4:46 PM
And Yes it will give the HOA the teeth to bite and bite hard.

That it does do.
LetA (Nevada)
Posts: 2,679
Posted:
Quote:
Posted By MelissaP1 on 01/24/2024 4:52 PM
How? Liens and foreclosure not basis for fines. Liens maybe with fancy accounting. I would set my rent enough to pay the fines. You can not just grab a fine amount out of the air. It has to have real numbers involved. Otherwise the HOA could be paying taxes as fines are not a source of income for a HOA. It is a punitive charge.

Never said they were. If someone violates the CC&Rs a courtesy letter is sent, if the violation continues they are called to a hearing.
After which they are fined for each occurrence or repeat occurrence.
DeanJ
Posts: 1,786
Posted:
Quote:
Posted By MelissaP1 on 01/24/2024 4:52 PM
How? Liens and foreclosure not basis for fines. Liens maybe with fancy accounting. I would set my rent enough to pay the fines. You can not just grab a fine amount out of the air. It has to have real numbers involved. Otherwise the HOA could be paying taxes as fines are not a source of income for a HOA. It is a punitive charge.

My association had the fines initially starting out very low and have a rather long time to correct the issue. Then things tighten up . Chose to ignore and you find the fines doubling every 7 days
MelissaP1 (Alabama)
Posts: 13,836
Posted:
That is not legal in many states.
Former HOA President
MichaelS56 (Minnesota)
Posts: 859
Posted:
We added a clause to our governing documents, using an attorney, that states that the owner must have lived in the Unit for two years before it can be leased. We already had in our governing documents that the lease must be for 6 months or more. Any damage or issues with the leasee the owner is responsible as per governing documents.
TerriS6 (California)
Posts: 3,284
Posted:
If the property owner's lease had a 'no sub-let' clause, he can sue the tenant for the $180,000. One would think the property owner should have known about the STR after so many months.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Terri how does that work and involves the HOA? The HOA just has the restrictions in place they do not have a thing to do with the lease. That is the owner and tenant issue. All HOA can do is enforce rule on the member.
Former HOA President
TerriS6 (California)
Posts: 3,284
Posted:
Quote:
Posted By MelissaP1 on 01/25/2024 6:44 AM
Terri how does that work and involves the HOA? The HOA just has the restrictions in place they do not have a thing to do with the lease. That is the owner and tenant issue. All HOA can do is enforce rule on the member.

I did not say it involved the HOA.
LetA (Nevada)
Posts: 2,679
Posted:
The only good thing about this is, that it somewhat takes the monkey off the HOA's back and places it on Code Enforcement.
The STR host can't hide their listing and now you need a county permit to be a STR HOST. Sill puts the HOA in the drivers
seat for enforcement action against the owner for CC&R violations and the county goes after them too, a double whammy.
MelissaP1 (Alabama)
Posts: 13,836
Posted:
Crazy enough I think the view of short term rentals may be changing. It seems to becoming more and more of the "norm" for the younger generation. I say that because in my HOA we have 1 known STR. There may be others. So far the opinion of my neighbors is that they like it. Even sharing the rental information amongst everyone. We seem to have more issues with the long term rentals than this STR. It may be because of the lack of hotel options within 10 miles of our neighborhood.

We are still developer owned. I tried once to mention the issues a HOA have with Rentals (Long/short). It seemed to go over most of their heads. Now there still is room when we become owner owned. However, I have generally noticed that STR's are pretty popular and not frowned upon as in the past. There are other Non-HOA that have STR around here. Have heard very little complaints except for those whom are going to bad landlords anyways.
Former HOA President

🎯 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

Terms of Use and Privacy Statement