Tax, Legal Issues, Contracts, Self-Directed IRA

User Stats

17
Posts
6
Votes
Michael Pence
  • New to Real Estate
  • Overland Park, KS
6
Votes |
17
Posts

Langauge in Covenants Restricting Short Term

Michael Pence
  • New to Real Estate
  • Overland Park, KS
Posted May 21 2022, 18:21

Hello BP Legal Minds,

I have identified a distressed property with a distressed seller on the Lake of the Ozarks. It is in need of a complete overhaul, but the VP of the HOA said that short-term rentals are prohibited. We are very interested in the property for our Family as a family vacation home that we occasionally rent out to a vetted guests. Would anyone be willing to share their opinion on the below language pulled from the covenant?

Thank you in advance,

Mike P.

Kansas City, Missouri

User Stats

1,223
Posts
515
Votes
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
515
Votes |
1,223
Posts
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
Replied May 22 2022, 12:03

I would find another opportunity.....with no HOA

User Stats

17
Posts
6
Votes
Michael Pence
  • New to Real Estate
  • Overland Park, KS
6
Votes |
17
Posts
Michael Pence
  • New to Real Estate
  • Overland Park, KS
Replied May 22 2022, 12:56

@Kerry Noble Jr what if I have identified a couple of nearby properties that are on VRBO or AIRBNB?

User Stats

1,223
Posts
515
Votes
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
515
Votes |
1,223
Posts
Kerry Noble Jr
  • Investor
  • Indianapolis, IN
Replied May 22 2022, 14:15
Quote from @Michael Pence:

@Kerry Noble Jr what if I have identified a couple of nearby properties that are on VRBO or AIRBNB?


 How long have they been active? 

User Stats

17
Posts
6
Votes
Michael Pence
  • New to Real Estate
  • Overland Park, KS
6
Votes |
17
Posts
Michael Pence
  • New to Real Estate
  • Overland Park, KS
Replied May 22 2022, 14:22

@Kerry Noble Jr one is a newer listing, I will have to check on the others.

User Stats

4,646
Posts
5,598
Votes
Bill Brandt#3 Home Owner Association (HOA) Issues & Problems Contributor
  • Investor
  • Las Vegas, NV
5,598
Votes |
4,646
Posts
Bill Brandt#3 Home Owner Association (HOA) Issues & Problems Contributor
  • Investor
  • Las Vegas, NV
Replied May 22 2022, 14:56

You want to do some research? Turn them in to the HOA and see what if anything happens. They can't selectively prosecute their covenants. So either they don't know, don't care, or don't think a short term rental falls under business or commercial. Many hoas that allow STR in NLV don't allow businesses to be run out of their homes..

User Stats

9
Posts
5
Votes
James Neill
  • Rental Property Investor
  • Osage Beach, MO
5
Votes |
9
Posts
James Neill
  • Rental Property Investor
  • Osage Beach, MO
Replied May 22 2022, 18:46

@Michael Pence

If the HOA says they do not allow short term rentals you likely will not be able to get around that. If it is ambiguous they can still make your life very difficult and probably will not be worth the added stress. The Lake has a small town community feel and there is no way to rent out your place without the neighbors knowing. Good luck!

User Stats

17
Posts
6
Votes
Michael Pence
  • New to Real Estate
  • Overland Park, KS
6
Votes |
17
Posts
Michael Pence
  • New to Real Estate
  • Overland Park, KS
Replied May 22 2022, 18:55

@James Neill thanks James. I believe I have identified three other properties in the neighborhood that are listed on VRBO/AirBNB. We have shifted our mindset to a fix and flip.