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Short-Term & Vacation Rental Discussions

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April C.
  • Rental Property Investor
  • Austin, TX
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Can Deed Restrictions be changed by an HOA?

April C.
  • Rental Property Investor
  • Austin, TX
Posted Apr 15 2021, 07:52

We are under contract on a property in Texas we would like to use as a STR. The Deed Restrictions do not state that the property cannot be used as a Short Term Rental. The City it is in has no Restrictions on STR nor does the county. In due diligence we asked the HOA for all current Deed Restrictions and read through them there is nothing prohibiting them, they were written in the 1980s. However the HOA wrote us back that:

The deed restrictions limit the use to single family dwellings and a few commercial lots. If your intent is weekend rental that would be commercial use and not allowed by deed restrictions. 


We found that the State of Texas supreme court ruled in a "broad property rights decision, allows short-term rentals as a Residential Use". 

TEXAS SUPREME COURT, IN BROAD PROPERTY RIGHTS DECISION, ALLOWS SHORT-TERM RENTALS AS A "RESIDENTIAL USE" | JPS Law Cases & Issues (jpatricksuttonlaw.com)

It is my understanding based on the fact that the current Deed Restrictions says nothing about Short Term Rentals the HOA has not standing. That said can they change the Deed Restrictions or broadly change the rules on the HOA after someone has purchased in the area? We love the property are in an option period but want to keep the deal. Thoughts?


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