Short Term Rental - Neighbor Not Happy - Need Attorney Rec

[Jeff Halverson]

Hi - I purchased a home in Sevier County last year, remodeled it, and just got it on the short term rental market. I have a COO for 12 people but listed the property on AIRBNB at 16. My neighbor, who is vehemently opposed to the short term rental called the county and apparently he has an attorney.

Does my neighbor have any type of "case"?  He'd like to shut me down but other than that I am wondering what other implications there may be?   It was a mistake to list it for 16 people and have since taken it down. 

I'd like to start a dialouge with an attorney and may need representation at some point.  

If anyone has any insights or similar experiences, particularly in TN, please let me know. 

TIA,

Jeff

[Luke Carl]

I think I’d try reasoning with this person. They are living in an area that few people  live. Let’s say you go so far as to sell. Their next neighbor will be right back on Vrbo. 

[Sergey A. Petrov]

First, I’d make sure I am in full compliance with local regulations so that there isn’t a “case” against you.

Second, I’d try talking to the neighbor, let them know you very much care about your property and the neighborhood and will do your best to make sure your tenants (short term or long term) do not cause any issues for anybody. I’d give them my contact information and encourage to let me know if they observe any issues (again, because you don’t want issues and issues are a bad thing for all involved).

More often than not, people are reasonable. If you find that there truly is no reasoning with your neighbors, yes get an attorney, stay compliant, and do what you do best. And hope the neighbor isn’t unreasonable to the point of knocking on the door, disturbing your guests, or doing something crazy. If that starts happening you might have a “case” against your neighbor. Won’t be a pleasant experience but we do face those here and there. 

[Trish Mccoy]

i would start with the county first. Ask them if you neighbor has any basis. Just because they don't like STR isn't a basis. But if you are violating something then they have grounds. Mostly likely you had to get an STR permit - make sure you know the requirements of the county.

I have a neighbor who doesn't like that fact I have a short term rental and there is not a thing they can do as long as I following the guides of the county.

[John Clark]

Quote from @Jeff Halverson:

I have a COO for 12 people but listed the property on AIRBNB at 16.

You didn't help your cause any by lying on your listing, so why did you do it?

Ask yourself: Would you like to be the homeowner neighbor of an absentee landlord who plays fast and loose with the facts in order to generate income from transients? Even if you "took down" the 16 person description, the attitude remains. No wonder your neighbor is loaded for bear.

[Jeff Halverson]

@John Clark Thanks for the very helpful reply.  

[Jeff Halverson]

@Trish Mccoy Thanks Trish! That's what I thought too. I don't manage the property myself and definately should have been more clear about the COO limit. Nonetheless, I am in compliance with all other aspects of the property so am hoping I am in good shape.

I just don't quite understand what his "case" would be.  Am I volating any legal agreements between him and I?  I would think that the state can certainly take action against me but don't see how he would be involve other than as a wistleblower. 

Thanks again. 

[Jeff Halverson]

@Sergey A. Petrov Thanks for your thoughts!  I have definately tried reasoning with him.   During the remodeling phase, he told me he will never accept short term rentals and will fight this...

[Jeff Halverson]

@Luke Carl Thanks for your thoughts!

[Sergey A. Petrov]

Quote from @Jeff Halverson:

@Sergey A. Petrov Thanks for your thoughts!  I have definately tried reasoning with him.   During the remodeling phase, he told me he will never accept short term rentals and will fight this...

Well in that case, dot your Is cross your Ts on the compliance side, tell the neighbor to stay off and away from your property and that they / their attorney should direct further inquiries to your attorney (or your manager if they are up for it; most likely not. I’d want to “shield” my manager from this as well)

[Patricia Steiner]

Talking to the neighbor who is opposed to short-term rentals is a waste of time. He doesn't want you or it there. You're not going to change his mind - nor is it your responsibility to do so. The municipality has ordinances in place regarding its usage. But marketing your property in excess of the COO was not just wrong/code violation/more - you made yourself a target with the neighbor. His course of action against you is to file a complaint with the county and demand you be shutdown and banned from short-term renting. Can he do that? If you're violating the ordinance, absolutely - all day, any day.

My recommendations are from the lessons learned in my market where vacation rentals are highly regulated/restricted/debated - because the hotel industry is so strong here:

1. Make sure you have standing at all time - aka "be legal or be sued/shutdown."

2.  Only respond to any formal municipal complaint.  Chances are you're now on their monitoring list because the neighbor has reported you.  Again, stay in your lane and make sure you have all documentation available to present. 

3.  Don't talk to the neighbors.  The county has ruled on the legality of vacation rentals and the neighbors have no right to prohibit you from legally operating under the ordinance.  But bad neighbors can ruin guests' vacations quickly and crash your business so be sure to book your guests under the premise that there will be no parties allowed on premises (now a requirement of AirBnb) and that to disturb the neighbors will make for an unpleasant experience for all.  The best way for making sure your time and money isn't spent in an endless spitting contest is not to get stupid.  Overbook, market the property incorrectly, allow parties - and I can assure you that it will get ugly fast.

And, back to your "do they have a case" question...you showed intent to knowingly violate the ordinance.  That will be presented to the municipality.  Be sure that you have nothing online that shows anything other than 10 guests maximum. 

Know this: you stuff a bunch of guests into a property to make more money and the rating you will receive will be one that does more damage to your business than the neighbor packing attorneys.  Run your business and be a respected business owner or stop now.  It only takes one bad operator to make it incredibly difficult on the rest of us.

[John Clark]

Quote from @Jeff Halverson:

I just don't quite understand what his "case" would be.  Am I volating any legal agreements between him and I?  I would think that the state can certainly take action against me but don't see how he would be involve other than as a wistleblower. 

Thanks again. 

 You could be interfering with his right to quiet enjoyment of his own property, or some other form of private nuisance. That could give him standing to sue if there's rowdy parties, etc. You have an antagonistic neighbor, and you didn't help your cause any by blowing past your "clear" certificate of occupancy limit of 12 with an AirBNB profile of 16 people.

The only thing you can do is what others have suggested: Make sure you comply with all state, county, and local, permits and requirements for short term rentals, and understand where your neighbor is coming from and why.

[Collin H.]

I think there's a lot more to this story...  

[Natalie Schanne]

@Jeff Halverson - the market is turning. I’ve seen some people say they’ve made $300,000+ profits on their Smoky Mountains flips. Consider listing it with showings by appointment (between guests only?)

Or if you're holding it, make sure that you have exterior cameras alerting you if the neighbor is going to do anything crazy while your guests are there, potentially ruining their stay. It doesn't take more than 60 seconds for some crazy guy to knock on your cabin door and tell you "incorrectly" that STR are banned in this area and he's calling the cops on you… for a guest to have a pretty much 100% negative experience and ask for a refund. At probably $500-1000/night, nobody wants this. I've heard of rabid neighbors telling str lakefront guests that they're not allowed to use the lake.

What’s the privacy between you and this other party? Can you erect a tall fence or more trees?

Would you offer to buy their house?

In my area in the northeast, if your neighbors were mad they could ultimately get code enforcement on your tail looking for intense renovations without permits or anything else. It sounds like you’re on the up and up with all of those items though,

The best strategy is probably to get a different person to interact with your neighbor. He probably doesn’t like you. Maybe the construction workers pissed him off with demo trash. I would make my “new property manager” the sweetest person there is someone he/she would feel bad to hurt. And hopefully they will leave you and your guests alone. (Make sure there’s proper signage so nobody goes up their driveway by mistake).

[Bruce Woodruff]

@Jeff Halverson If the City gave you a legitimate COO, then you are good to go.....Except and unless you get parties, noise, trash and the like going on there. Then he can and will get you shut down. I am in a similar situation to yours except that I actually asked them to lower the number of guests allowed. Less people = less possible problems.

You already know you erred in increasing the number of occupants and that's good, but also get out of your head the concept that more 'heads in beds' is a good thing. It is not always a smart thing, that is where most issues arise. Forego the greed and think smarter. How many bedrooms do you have? Multiply that x 2 and that is your max occupancy. Cramming people in on hideabeds, sofas and air mattresses is just stupid IMHO.

Make your place an attractive addition to the neighborhood, and get all the neighbors to love you, not hate you. This one guy may never change, but all you can do is do your best. Put up a fence, monitor your guests and make this into a win.

[Jeff Halverson]

@Bruce Woodruff Thanks Bruce, and all other comments!  

I am going to take your advice about the head count.  The house is actually very big (6 sleeping rooms, 3 living rooms, etc) but it is not worth the trouble.