Short-Term Rentals in Condominiums and HOAS

Is your community located in a popular vacation area? Or experiencing a large public event where the number of people expected exceeds the hotel stock? The short-term rental (STR) market has been booming, especially with popular platforms like Airbnb and VRBO making it easier for people to rent their homes to travelers. But what does this mean for your association, and how should you handle it?

Check for State and Local Laws

First, understanding the definition of STRs and any potential restrictions in your state is crucial. A number of states have laws that address the association’s concerns because they:

· define them as a dwelling rented wholly or partially for a fee for a period of less than thirty (30) consecutive days;
· require the rentals be registered (for taxing purposes);
· require owners to obtain local permits and adhere to zoning codes; or
· prohibit them entirely.

Know Your Governing Documents

Next, review your Association’s governing documents. What do they allow or prohibit? Can you realistically amend them? How much time and effort are you willing to invest in any amendments? Answering these critical questions upfront can save you a lot of time and money.

Enforce Existing Provisions

If your documents already include provisions such as “No unit can be leased for less than six months,” then STRs the Association must prohibit transient guests, and it’s just a matter of enforcing your documents. But this may not reflect the community members’ current preferences. There are many ways to allow STRs to occur peacefully within your Association, including proactively passing well-thought-out and targeted rules to help manage rental behaviors.

Five Key Steps to Manage STRs

Know Your State and Local Laws: Be aware of any state regulations or local laws that could impact short-term rentals in your area.

Know Your Documents: Familiarize yourself with what your governing documents say about rentals and STRs.
Know Your Options: Explore the different ways you can manage or regulate STRs within your Association.
Know Who is in Your Units: Keep track of who is renting and staying in the units to ensure compliance.
Know Who to Contact When Issues Arise: Have a clear point of contact for addressing any problems.

Communication is Key

Lastly, keep owners informed about what the Board is doing and why. Problems within an Association often arise when owners feel decisions are being made in secret or unfairly. Open communication is crucial to maintaining harmony in your community.

By following these steps and being proactive, you can successfully manage STRs in your Association and ensure that your community continues to thrive.

Kaman & Cusimano assists many community associations by drafting amendments and rules tailored to the community. If interested in having our firm help your community, please use our contact form to request a proposal.

Dan Miske

Dan Miske earned his bachelor’s degree in accounting from Marquette University and later earned his Doctor of Jurisprudence Degree from DePaul University College of Law. Dan has served on various boards which allows him to relate to clients and identify with the complex legal challenges that community association boards may face. His vast experience allows him to present options that others may miss. Dan has helped community association boards with many issues they face including document amendments, collections, contracts, rules and governance.

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