Can deed restrictions prevent me from renting a room

Question

I'm looking to make an offer on a live-in flip with a room that is perfect for short term rentals. The House is on the edge of a neighborhood with no formal HOA but it does have deed restrictions...

"Vacation rental, "Game-day housing", and short term leasing shall be prohibited in all instances. "Game-day housing" shall be defined as a situation understood to be temporary in relation to university activity. In the event of required enforcement of these restrictions the property owner shall be required to demonstrate conformance to these restrictions."

I understand that in the most strict interpretation of these restrictions no short term rental is permitted. However, I'm an 'its easier to ask forgiveness than it is to get permission' kind of guy.

With that being said, has anyone had success renting just one room in a primary residence and avoiding the wrath of nosy neighbors?

Thanks

Natalie Schanne · Answer

@Gregory Schwartz - I believe you will be able to offset expenses most easily and carefree if you rent the room long term to a professional working roommate (don’t choose a friend.) I’ve successfully been the renter and rented rooms this way instead of renting a 1 Br apartment. (I took half of a 2/1 furnished house for $450/mo instead of renting a 1 br apartment for $1200 plus furnishing plus utilities.) I like long term because they pay a security deposit and learn the area rules and don’t mess them up by saying stupid stuff to your neighbors. Even parking in the wrong spots can upset your neighbors. Anyway, research what a 2/2 apartment costs and charge about half of that plus 1/2-1/3 utilities. I generally do utilities on an actual split so there’s an incentive to save. I usually round down to the nearest $25 like 599 for my Facebook Mkt ads.

Gregory Schwartz · Answer

@Robert Tinker Nothing in the deed restriction against long term rentals or against me having short term "guests", who also pay to stay with me. The intent, as I read it, is to keep short term game day party houses out of the quiet neighborhood. I fully support the intent, we like our sleep.

Our back up plan is to rent out the room as a furnished rental on a monthly basis to nurses and other professionals who need a mid-term rental period. But naturally, we're drawn to the increased income available from an Airbnb.

Just a young couple trying to lower our expenses.

Mike Shemp · Answer

We came across a similar deed restriction because it was the neighbor next door who owned the property and didn't want to sell it to anyone who was going to short-term rent it. I would personally pass on that.

If you know your market really well, you'll know the next best opportunity as soon as you see it.

Mike

Robert Tinker · Answer

Does the deed say no roommate?

Steve Morris · Answer

Well, it sounds like CCNR for a community. I guess if it's recorded on the deed, you should follow it.

Big question is who'll enforce it. I have a CCNR that each house has to have shake roofs, after 30 years none do.

Your biggest threat will be a member of the CCNR getting a RE atty to file, but I really don't know how they enforce it.

Attys?

Collin Hays · Answer

So you are knowingly considering renting out a portion of the house, fully aware that it is prohibited by code? Even if you didn’t get busted, it’s incredibly arrogant and inconsiderate of your neighbors for you to do this.

Whatever happened to morals and ethics in this country?

Josh Caldwell · Answer

All it takes is one busy body neighbor and you have a problem. I would avoid this property as a short term rental. Does the property work as a monthly rental?

John Underwood · Answer

Yes it is very much prohibited.

Just like speeding, people do it but you eventually get caught and pay the piper.

All it would take is one neighbor to turn you in.

Why take the risk? Just buy something where it is permitted.

Can deed restrictions prevent me from renting a room

Can deed restrictions prevent me from renting a room

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