Authority to Restrict Short-Term Rentals.Įven if a community has a valid reason to restrict short-term rentals, it still needs legal and contractual authority to support the restriction. And, if travelers regularly use common facilities like a pool or recreation center, the HOA's insurance rates are likely to increase, as further use of the facilities by more people inevitably leads to more damage and risk of premises liability claims. Vacationers do not pay HOA fees and are less vested in the long-term condition of the community.įrom a practical standpoint, short-term renters can increase a neighborhood's traffic and parking problems. In a community with common areas and facilities, vacationers can overtax the commons, preventing full-time residents from enjoying the benefits for which their assessments pay. Short-term renters also tend to ignore HOA rules or not know what the rules are. The commotion can become a nuisance for people who reside in the community year-round-specifically, other homeowners and their families. Vacation renters tend to be messier and noisier, especially at night, than permanent residents. A quiet, sleepy neighborhood that all-the-sudden has vacationers coming and going stands a good chance of losing its calm, peaceful nature. With short-term rental restrictions, the purpose is generally to protect other members and preserve the community's character. When an HOA restricts homeowners' use of their properties, it needs some justification. Yet, there has been a growing trend to prohibit them in HOA communities. So far, short-term rentals sound like an excellent deal for all involved parties. Either way, the property owner is coming out ahead. Extra cash can improve the property, making it a more attractive destination that can command higher rates. In the right location, a property rented for short-term stays can bring in significantly more revenue than with a traditional year-to-year lease. It can be a great deal for property owners, too. Just as importantly, vacation houses and condos rented out through Airbnb or VRBO are often more exciting places to stay, with the individual character and idiosyncrasies you do not get from a cookie-cutter hotel room. You can find a nice place to stay for a few nights, and it is frequently cheaper than booking a hotel. Short-term rentals seem like a win-win situation.

If the Association's declaration prohibits rentals (short-term or long), the HOA can likely enforce the prohibition unless there is some other reason why the restriction is unenforceable.

Hoa covenants short term rental