Has anyone fought an HOA's ruling against AirBNB
Investor · Portland, OR · Member since 2017 · 15 posts · 12 votes
Has anyone fought an HOA's ruling against AirBNB
Most Popular Reply
You can't 'fight' an HOA. They will win. Every time. In fact, you are part of the HOA, so you're fighting against yourself. Think about that.
What you can do is talk to the board. In most cases, that's all they want. They are community members just like you, who have volunteered time to help run the business of the community. Many times there is resentment there for community members that do not volunteer, or seem to even care, about the community rules and/or property values.
Take the time to go to a board meeting and explain your situation. Mea culpa, you didn't read the rules well enough, ask for extra time to figure out your exit strategy (which you really should have had figured out prior to buying the property). Get clarification on what is the minimum number of consecutive days approved for rental. If it's 30-90, you may very well be able to keep going as a corporate rental like Myka stated above. However, I wouldn't volunteer this information and I would keep the leases handy in case they again accuse you of violation of the rules. If they are not on board with STR or even Corporate/Nursing rentals, this is likely to considered a 'loophole' and they may attempt to close it by extending that out to minimum 6 or 12 month leases.
Don't let things get contentious when you meet with them. Again, this will not work. If anything, try to be friendly enough that they'll want to invite you to become a board member when a seat opens up. It will help if you start attending the monthly meetings. You'll likely be the only resident that does, except for the occasional person that shows up with a complaint. This will require about 1 hour of time per month, and the payback can be great.
Once you're on the board, you can convince them why this is good for the community, or at least why it's not a bad thing, and help to shape the rules to allow for STRs. In fact, if you're attending regularly, you may not even need to become a board member to get to that point. As long as you're attempting to work with them, not against them, you may get what you want.
After that, you'll just need to worry about the next step up in local government, and if your city/county/etc. plans to restrict STRs in any way in the future.
13 Replies
- Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes8y
It is likely a violation of the condo rules. Also, it probably violates the terms of your mortgage....and do you have it properly insured...as a typical owner occupant policy, nor a typical rental policy would cover short term rentals.
I sold 3 condos this year from investors who got fined from their condo associations for AirBnBing, and none of them were successful in their battles with the HOA, nor with their battles to get the fines removed.
District Invest Group545 Reviews - Investor · Portland, OR · Member since 2017 · 15 posts · 12 votes8y
Thanks for your response Russell. Also, really liked your episode! So cool to see you active on here.
The condo is owned outright. I believe the policy covers short term rentals but I am not sure. The agent is a friend and is aware of how we use the property.
Interesting on the Airbnb rulings in your experience. I figured that would be the case but just thought I would check it out. - Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes8y
Originally posted by @Frank Manning:
Thanks for your response Russell. Also, really liked your episode! So cool to see you active on here.
The condo is owned outright. I believe the policy covers short term rentals but I am not sure. The agent is a friend and is aware of how we use the property.
Interesting on the Airbnb rulings in your experience. I figured that would be the case but just thought I would check it out.You buy the property subject to the bylaws, which can be modified at any time.
This is exactly why I am against condo investing. Did you buy it solely with the AirBnB model in mind? Did the bylaws ban it when you purchased or was it added later. Neither will change anything, just wondering
Second City Real Estate4.821 Reviews - Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes8y
@Frank Manning I haven't had any luck with my HOA either. The only thing I can think of would to get the other owners on board and then call a board meeting voting in favor of it. Also if you want that Airbnb money you can turn your condo into a corporate rental and get about what you make a month on average as an STR.
You can't 'fight' an HOA. They will win. Every time. In fact, you are part of the HOA, so you're fighting against yourself. Think about that.
What you can do is talk to the board. In most cases, that's all they want. They are community members just like you, who have volunteered time to help run the business of the community. Many times there is resentment there for community members that do not volunteer, or seem to even care, about the community rules and/or property values.
Take the time to go to a board meeting and explain your situation. Mea culpa, you didn't read the rules well enough, ask for extra time to figure out your exit strategy (which you really should have had figured out prior to buying the property). Get clarification on what is the minimum number of consecutive days approved for rental. If it's 30-90, you may very well be able to keep going as a corporate rental like Myka stated above. However, I wouldn't volunteer this information and I would keep the leases handy in case they again accuse you of violation of the rules. If they are not on board with STR or even Corporate/Nursing rentals, this is likely to considered a 'loophole' and they may attempt to close it by extending that out to minimum 6 or 12 month leases.
Don't let things get contentious when you meet with them. Again, this will not work. If anything, try to be friendly enough that they'll want to invite you to become a board member when a seat opens up. It will help if you start attending the monthly meetings. You'll likely be the only resident that does, except for the occasional person that shows up with a complaint. This will require about 1 hour of time per month, and the payback can be great.
Once you're on the board, you can convince them why this is good for the community, or at least why it's not a bad thing, and help to shape the rules to allow for STRs. In fact, if you're attending regularly, you may not even need to become a board member to get to that point. As long as you're attempting to work with them, not against them, you may get what you want.After that, you'll just need to worry about the next step up in local government, and if your city/county/etc. plans to restrict STRs in any way in the future.
- Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes8y
You say using it for AirBNB is "now not allowed". What happened here? Was this always prohibited, but the prohibition was ignored and has started being recently enforced? Did they just discover you were doing it and are enforcing a provision that's always been in the bylaws and always enforced and you just hadn't been caught? Did they change the bylaws? If there was a change in the bylaws or enforcement policy, were you aware that was being considered? Did you get involved?
The downside to HOA properties is you always have a business partner who can dramatically affect you yet who's interests aren't really aligned with yours.
- Flipper · Chicago, IL · Member since 2015 · 44 posts · 33 votes8y
I feel your pain…. Just got shut down by my HOA last week.
I stood up in the HOA monthly meeting and spouted a speech about how the HOA is raising the dues and my taxes are going up and I'm having a hard time paying my mortgage (the mortgage one was a lie). The point is they didn't care…. I even went further and said without the Airbnb money I will have to go into foreclosure, which will affect the entire build. They told me to move out and rent it out, I again lied and said the rent will not cover the mortgage. They then suggest I sell my unit or get a roommate and then quickly moved on to another subject leaving me still standing up and awkwardly sitting down not able to say anything else on the matter....
Luckily I was just using Airbnb to get additional income while I looked for my next deal, the condo does cash flow very well as a regular rental which was the plan all along. But again, they didn’t care at all, even when I said I would go into foreclosure…..
- Member since 2019 · 2 posts · 0 votes7y
While many associations have passed reasonable restrictions on leasing as an amendment to the association’s declaration, many association boards are specifically asking how to combat short term rentals, particularly in non-vacation areas. To address this issue, HOAleader.com recently publishes a series of articles regarding combatting condominium short term rentals. To view the article, please visit the following link:
http://www.hoaleader.com/public/Wait-Theres-More-Additional-Ideas-to-Combat-ShortTerm-Rentals.cfm
- Rental Property Investor · Shakopee, MN · Member since 2015 · 985 posts · 374 votes7y
This is exactly why I don't buy townhomes or condos. Too many power hungry people in charge changing the rules and raising the HOA fees. All it takes is for one person to ruin it for everyone. Not only do some not allow Airbnb but a lot of them don't allow renting at all. A large townhouse complex built somewhat near me with over 500 units and the HOA doesn't allow any rentals. Needless to say I saw a lot of those new units come up for sale in the next few years. My grandparents townhouse they got a notice from the HOA because they had 3 potted plants outside and they are only allowed 2. I mean who the heck drives around and complains about extra potted plants? Seriously.
Your best bet will be to sell. You won't be able to fight the board on this. Unless you see the HOA board changing people in the near future I think you are out of luck here.
More and more places are changing bylaws to not allow any Short term rentals. Your best bet would be to get a house then you can do what you want.
- Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes7y
Try 30+ Day rentals either as Airbnb but more focus on the furnished corporate rentals. I have a great strategy that is so much better than straight AirBNB. I call it Corporate AirBNb hack. PM and will send you some details. its so good I do not want to display it publicly
- Member since 2019 · 24 posts · 6 votes6y
@Myka Artis - Thank you so much for your thoughts, how would you go about turning an airbnb into a corporate rental?
- re: Try 30+ Day rentals either as Airbnb but more focus on the furnished corporate rentals. I have a great strategy that is so much better than straight AirBNB. I call it Corporate AirBNb hack. PM and will send you some details. its so good I do not want to display it publicly
- Thank you so much for your thoughts, tell me more about this please
- Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes6y
@Jonathan H. It depends on the size of the place. If we're talking about 1/1 condos then you would advertise it to IT professionals and find corporations in your community that has employees that are in and out. If it's 2 beds or more I would then focus on getting traveling nurses to rent out each room. In Texas, you can charge $600 - 800/mo for a bedroom. You can also get $1100/mo for a bedroom with a private bathroom. There are multiple ways to get the job done. You can also list your properties on Furnished Finder and in traveling nurse groups on FB.
- Real Estate Broker · Santa Ana CA [South Coast Metro] · Member since 2016 · 459 posts · 202 votes6y
Originally posted by @Jonathan H.:
@Myka Artis - Thank you so much for your thoughts, how would you go about turning an airbnb into a corporate rental?
- re: Try 30+ Day rentals either as Airbnb but more focus on the furnished corporate rentals. I have a great strategy that is so much better than straight AirBNB. I call it Corporate AirBNb hack. PM and will send you some details. its so good I do not want to display it publicly
- Thank you so much for your thoughts, tell me more about this please
Hey Jonathan
Yeah depending on your location both executives, engineers and traveling nurses make great tenants.
When you furnish a rental do it high end and not cheap yardsale furniture. Have a theme and matching accessories, remember you are in the hospitality business versus the property management angle.
ie: if you target nurses find out things that are important to them, ie: black out curtains - many work nights and need peace and quiet during the day. Engineers probably work during the day. Get nice quality accessories, ie: Keurig coffee makers, hair dryers, sparklets water etc.
Google sites to post on like Furnished Finders, housing4nurses.com, sublet.org etc
Take some pics make them look good post it here so we can see your progress. good luck
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