Dealing with HOA rules

[Jessica48]

Hi All,

Our townhouse has HOA, but when we purchase it, we are informed that we can rent it out as an investor. There are couple house are rent out in our community. And for the HOA policy, there is no strict rules for short or long term renting, since our townhouse just turns to home owner from developer renting. Everything is not mature yet. We received an email from our managment company, and politely informed us to stop airbnb listing, since it's not safe, and they got some complaints. Here is the original wording: "the Board of Trustees requests that you stop offering and using the unit as a short-term rental effective immediately. " We were asking more rules and policy, they said they don't have it, but will draft amendment soon, but in the mean while, ask us to stop renting airbnb. We understand that some HOA has policy for no short term renting, or no less than 30 days renting. But since ours didn't have it, so we think we can rent it our as airbnb, plus our past guests all respect, polite and quiet. There is no issue happened yet. I am not sure if we should follow what they say or wait for the real amendment to be created.

Thanks.

[Rich14]

I'm having the same issue... Did you get any answers?

[Jessica48]

We didn't stop airbnb, but obviously HOA trust is not happen with that, so they held voting process according to our Master deed. Fortunately they got more than 75% votes to aganst short term renting (money involved or not), but they didn't get consent from mortgagees yet, but from Master deed, they can get default approval within 30 days no response. I guess we need to stop airbnb then if the amendment really effects. 

Here are my next questions then. What shall I tell airbnb for the existing trips, see next three months, we got lot of bookings, will we get penalties if we canceled those bookings? Will HOA amendment effect immediately? Shouldn't they have some grace period? I was still trying to read/interpret our Master Deed. But I guess the worst thing will be that we cancel the bookings and rent our room long term.

[Premier-Properties0]

Jessica,

I have been in your shoes and it is very stressful!!  I tried to keep those guests under the radar.. nope.. neighbors got me!! It was a nightmare!!!!!!!!! 5,000 later in attorney fees and fines 4,000!

I would try and get another property to put them in asap.

[Premier-Properties0]

I had the issue and let me tell you... I was fined and supoened to court and it cost $$$$ me a lot of money and plus they watched my property like a hawk!!  I know it is a pain, but now my properties are in a NON HOA are, my advise.... get a NON HOA property..

[Leo29]

Hello there.  I am having the same problem in Texas. Can you tell me what happened and how you resolved the issue?

Thanks
Leonard **

[Jessica48]

We didn't stop airbnb, but obviously HOA trust is not happen with that, so they held voting process according to our Master deed. Fortunately they got more than 75% votes to aganst short term renting (money involved or not), but they didn't get consent from mortgagees yet, but from Master deed, they can get default approval within 30 days no response. I guess we need to stop airbnb then if the amendment really effects. 

Here are my next questions then. What shall I tell airbnb for the existing trips, see next three months, we got lot of bookings, will we get penalties if we canceled those bookings? Will HOA amendment effect immediately? Shouldn't they have some grace period? I was still trying to read/interpret our Master Deed. But I guess the worst thing will be that we cancel the bookings and rent our room long term.

[Cynthia-and-Chris1]

@Jessica48  I would definitely Snooze or Delist your listing now so you don't get MORE reservations.  If the time comes that you do need to cancel your existing reservations, call Airbnb directly and work with them to process the cancellations in a way that will have the least penalty to you.  Chances are you will still be penalized some since this does not fall under the Extenuating Circumstances policy.

[Premier-Properties0]

Airbnb will not be so sympathetic as you were told to check your local laws.  So best thing to do is find another host that can share in your cost and book them with them!

[Premier-Properties0]

I would seek some other airbnb hosts to get help and book them- maybe a good host can share half the costs since your giving them some business??  Then like I said.. get another property and shift what you can.

[Annette33]

@Jessica48 ,  interesting question.....I looked into it a bit as I am potentially in the same situation.
It seems to me that HOAs are losing leverage, look at the Surpreme Court decison 2014 - Wilkinson vs. Chiwawa Communities Ass.: The  Court decided that vacation rentals are consistent with RESIDENTIAL use and are not  considered commercial use . (HOAs say that rentals less than 6 months are commercial use). The Court also decided that such limitation goes against the individual property rights of each owner in the community. Furthermore, HOA regulations must be in accordance with the law of the land at all times, so if your or my community  endorses such use of one's property,and we pay transient lodging taxes, what leg does the HOA stand on?  Perhaps they are just trying to badger you into submission but know that they don't really have the legal power to enforce it.
Here in my city, they make a big difference if I am at the property at all times myself (I am, even though the apartment I am renting has a separate entrance) or if I am absent. for me, being there at all times, it was really easy to get the city permit, but if I were absent, then all sorts of other stipulations (and fees!) enter the picture, like I need to have an inspection, I need to inform my neighbours, etc.. that is where it could get hairy with an HOA. So whT is your situation? are you there when you rent out , or not? Good luck! 

[Bethany7]

@Annette33 that's all great news you found. I recently was given a cease and disist by my HOA for my Airbnb. It's my primarry residence and I rent out one of the three rooms in my home. 

I had read my HOA rules prior to purchasing the home and there was nothing about renting. Now, they are saying my use is commercial, rather than residential, but they can't seem to find any language in the CCRs against renting, even short-term renting.

I asked my real estate attorney about this and he gave me a few case examples that show Airbnb is residential, not commercial at all. If the HOA had rules against short term renting, I would comply and follow that rule, but their statement that I am "running a commercial business" is a stretch.

Has anyone had success with winning this fight with their HOA?

[Annette33]

@Bethany7, what a nuisance... stick to it! I am classified as residential in my city permit , not commercial.

[Colleen47]

Thanks for listing the Supreme Court case name for reference. 

[Becca1904]

I’m not a host yet, but planning to purchase a condo (since that’s what I can afford right now)… if I live in a room, and rent out the rest of the space, do I still need HOA approval to rent out shared space?