Private Membership Association - STR
3117 Whiting Ave, Charlotte NC 28205 · Member since 2022 · 5 posts · 2 votes
I have a friend who has a str in an area where it is prohibited, but he is one of those guys who shoots first and asks questions later.
The city has cited him with a cease and desist for the short-term usage of this property. He was presented the idea by another friend of making a private membership association where the LLC that owns the STR leases it to the membership association for 5 years, and then anyone (guests) who has the key to this association can access any one of the properties (he has 3 in total).
- this is one of those "I'm not renting the house, I'm renting the parking space, and the house just is accessible for anyone renting the parking space" mentalities.
Has anyone accomplished something along these lines?
The property is in Horry County, SC.
Sounds like an incredibly dumb idea for your friend to attempt. The City is not going to look at his house any differently just because he calls it something different. To them it will be a Short Term Rental. Period.
And when you violate a Cease And Desist Order from a municipality, you will pay consequences. Ask him if he's feeling lucky.....?
Hey @Aaron McKenzie, did you read the replies? Why would you want to try something is most likely against the regs. I will only serve to annoy your neighbors and the city.
This is a losing strategy and will probably have you LTRing the place.
...because it's not against the regs. He's using established structure to create a legal exemption granted by the US Constitution. Lots of businesses have moved to the private domain to bring their business outside of local regulations. This isn't any different. PMAs have been around longer than you. They work.
Great thread here. Looks like most are not in favor of this approach.
I would assume that they don't know anything about Private Membership Associations and are just operating from the perspective that if the government says don't do it you don't do it end of story. We are not a dictatorship, n'or a democracy. We are a constitutional republic and the 1st amendment of our constitution includes your right to associate. The PMA stands on the 1st, 4th, 5th, 9th, and 14th amendment of the US constitution and inherantly, many state constitutions as well, and in some cases even outside the US. The PMA files an 1120 at the end of the year and is issued an EIN as a private club. Neither the financial records nor member lists can be subponea'd in a private club because it's PRIVATE. Yes, I have a private club as do many in this industry. I recently met a guy who had a Country Club with over 1,000 properties and is registered in all 50 states making him a legislative entity. He has won in court many times without even stepping foot in a court room. Those of us who understand the rights, protections and power of a PMA aren't concerned about what the government is doing because (dare I say it) being in a private membership association is like being in your own country to a degree. We have our own operating agreement, we have our own judicial process, and members can offer products and services that would be considered to be illegal if offered to the general public of the US. A good friend of mine just opened a Burbon Club in Florida with no liquor license, just a PMA. As long as you don't create an environment of substantial evil (no suicide cults) you can do pretty much whatever inside a PMA that doesn't cause harm to others. You won't however impact zoning laws. But if your zoning allows you to lease a property to another entity, then you should be fine in a PMA. This is NOT legal advice, just what I have learned and am doing myself. Don't listen to me, seek your own counsel that is knowledgable on PMAs
Great thread here. Looks like most are not in favor of this approach.
I would assume that they don't know anything about Private Membership Associations and are just operating from the perspective that if the government says don't do it you don't do it end of story. We are not a dictatorship, n'or a democracy. We are a constitutional republic and the 1st amendment of our constitution includes your right to associate. The PMA stands on the 1st, 4th, 5th, 9th, and 14th amendment of the US constitution and inherantly, many state constitutions as well, and in some cases even outside the US. The PMA files an 1120 at the end of the year and is issued an EIN as a private club. Neither the financial records nor member lists can be subponea'd in a private club because it's PRIVATE. Yes, I have a private club as do many in this industry. I recently met a guy who had a Country Club with over 1,000 properties and is registered in all 50 states making him a legislative entity. He has won in court many times without even stepping foot in a court room. Those of us who understand the rights, protections and power of a PMA aren't concerned about what the government is doing because (dare I say it) being in a private membership association is like being in your own country to a degree. We have our own operating agreement, we have our own judicial process, and members can offer products and services that would be considered to be illegal if offered to the general public of the US. A good friend of mine just opened a Burbon Club in Florida with no liquor license, just a PMA. As long as you don't create an environment of substantial evil (no suicide cults) you can do pretty much whatever inside a PMA that doesn't cause harm to others. You won't however impact zoning laws. But if your zoning allows you to lease a property to another entity, then you should be fine in a PMA. This is NOT legal advice, just what I have learned and am doing myself. Don't listen to me, seek your own counsel that is knowledgable on PMAs
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