Getting Around HOA Short-Term Rental Restrictions?

Question

I am trying to get into the VRBO/Airbnb business and I am having a hard time finding places that allow short-term/nightly rentals. A lot of the HOAs in the area have restrictions on short-term rentals. Does anyone have experience with getting around these restrictions? Or any ideas? Thanks in advance.

Matt Nico · Answer

@Noah Chojnacki

Im slowly having this problem in a florida community I own homes in. My course of action is a bit more aggressive….Im buying every single home for sale in the community. By december ill have 11 of them. The community is only 68 homes. Myself and a handful of other homeowners are voting out the hoa in the fall.

Bruce Woodruff · Answer

Easy one....just don't even consider buying a condo or house that has HOA rules governing what you can do. Why the heck would you?

Don Konipol · Answer

@Noah Chojnacki

Short of getting enough votes to change HOA regulations, there is no way around minimum lease requirements as to rental of nightly, or weekly.  If the HOA requires a lease minimum of one year, you could possibly get around that by having say a “out” for the tenant based on a contingency (job transfer, etc.) after say 3 months or 6 months.  However, do it twice and chances are good you’ll get a cease and desist letter from HOA legal counsel.

Some years ago a number of property owners, with the encouragement and or backing of the STR apps, sought to challenge HOA regulations, municipal ordinates, state laws, etc. regarding STR.  Unsurprisingly most lawsuits were lost by the plaintiffs, and the few that were “won” usually resulted in small changes in either the wording of the regulation, or a slightly different compliant regulation being substituted.  In other words HOAs have been almost universally success in having courts uphold the right to regulate rental policy.

Mark Futalan · Answer

@Noah Chojnacki

I prefer to buy STR’s in non hoa communities because you never know if the hoa later decides to change things on you. The only rare exception would be if your in a true vacation rental market and most if not all homes are STR in that particular hoa community.

Melissa Wesling · Answer

I would only shop in the areas where STRs are allowed.  Depending on the area, HOAs in general are tough because the by laws on rental minimums can change.  Be sure to work with a realtor who knows the short-term rental rules and regulations in the area.  You can also look on the city's government website (or call them) to find the short-term rental regulations/zones.  It is usually under "Planning or Zoning."  If a market already has some regulations in place, that can actually be a good thing because it means they've already evaluated the concerns and put some rules in place.  One important regulation to look for is if there is a cap on the number of short-term rentals in the area, find out how many permits are still available.

Pat L. · Answer

Our Lakehouse neighbors are having problems up here with the town. One year the town welcomes the new cottage/Lakehouse owners and touts the fact they are renting their properties to help with their (insane) property taxes. A year later the town implements new codes to shutdown STR with the min being 30 days. They cite parking, noise & septic tank o/flows as the major concerns, so even without a HOA running a STR can be tough.

Tony Mikolich · Answer

I agree with Bruce. Why try to get around the HOA just to have a constant fight on your hands? HOA rules are instituted by the owners. If they don't want short term rentals, and who does?, then respect that. HOA rules are law.

Noah Chojnacki · Answer

@Bruce Woodruff I absolutely agree. The only reason I am considering it is because I live in the Park City area (UT), and many of the locations perfect for STRs are in communities with HOAs. Locations that are close to skiing, lakes, and other outdoor activities...

Chris I. · Answer

A lot of HOAs have a 30-day minimum which is still very workable for a lot of areas.

Alex S. · Answer

The ultimate HOA is the local city/county government.

In my area, there is a full-range of restrictions on STRs from one city to the next.  Completely outlawed, taxed, restricted, and wide open to STR.  I'd be interested to know if anyone has attended City Council meetings and argued for protecting STRs.  What was your strategy?  Any luck?

There are so few in my area, that I can't imagine it would make sense to regulate it at this juncture.  If the market crowds...maybe that will change.

Getting Around HOA Short-Term Rental Restrictions?

Getting Around HOA Short-Term Rental Restrictions?

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