HOAleader.com - Tip of the Week - October 26, 2013
Published: Sat, 10/26/13
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Don't Let Secret Short-Term HOA Rentals Rise at Your HOA
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In this week's tip, we answer a reader's question about how to
catch owners who think they're outsmarting you with their
on-the-sly short-term rentals through websites like Airbnb.
Our experts vary on how much they're seeing owners try to rent
out units for the short term.
"We're not seeing any greater number of people violating rental
rules than we have in the past," says Bob Diamond, a partner at
the law firm Reed Smith in Falls Church, Va., who helped write
the Washington, D.C., condo act in 1976 and worked on the
Uniform Condo Act, which 24 states have adopted. "You can't get
away with it. You can in a single-family community where you may
not know who your neighbors are. But if you're in a high-rise,
people will need an entry pass and passes for any amenities,
and the tenant will want that access, too. Often, they'll go to
the manager to get that access, and the manager will say, 'Who
are you?' You can't hide tenants."
That's not the case in New Orleans or Washington state, however.
"We run into this," says Randy Opotowsky, a partner at The Steeg
Law Firm in New Orleans, who represents 15-20 associations at
any given time. "The website I've seen at issue a lot is VRBO.
The associations we represent keep a close eye on that. They
don't usually turn a blind eye to short-term rentals."
Kevin Britt is also running into this challenge in Washington
state. "I've seen this more often," says Britt of The Law
Office of Kevin L. Britt, who specializes in representing
associations in Seattle. "I've had several recent cases where
owners have been involved in this type of leasing. What's
happening today is that as time goes on, as there've been
holdups in selling units, there's increased incentive for
owners to lease them for a short-term basis. The inventive is
certainly more today, in my opinion."
In most associations, short-term rentals are among those
expressly prohibited. "Most declarations and amendments I'm
involved in drafting have a clause that says there's no
short-term leasing," explains Britt. "That's something that's
going to be on the books for most associations that have rental
restrictions."
So what's a board to do when it has evidence, however flimsy, of
owners violating rental rules? Find out in our new article:
http://www.hoaleader.com/members/906.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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To Catch a Scofflaw: Owners Tout Units on Rental Websites
An HOAleader.com reader asks, "Our 93-unit condo here in Washington state
has a rental cap and a minimum six-month leasing period. We have an owner who
advertises on Airbnb with a minimum 30-day lease. How can we 'prove' his
non-compliance? Or is his advertisement enough to levy fines for past and
present infractions? The owner is off site."
With the growth of websites, like Airbnb and VRBO, that allow owners to rent
units for short periods, this issue will befuddle more and more HOAs. Here we
offer advice for rooting out violations, proving them, and appropriate
fining.
Click here to read full article:
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HOA Financial Statements from A to Z
Test your knowledge on HOA financial statements: Who should prepare them?
How often should they be prepared--monthly, quarterly, or only for annual
board meetings? To whom should the statements be distributed when they're
prepared? What specific information should be included in them? Here are
answers from our experts.
Click here to read full article:
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Can Members Bring Their Lawyer to HOA Meetings?
In May, a California court held in SB Liberty v. Isla Verde Association that
HOA boards aren't required to allow owners' lawyers to speak, or even
attend, homeowner association meetings. Here we discuss the case and
broader questions like: Is there ever a need for owners to have their own
lawyer attend an HOA meeting? Should you let such a participant speak? Can
you ask the lawyer to leave? What happens if the lawyer tries to hijack the
meeting?
Click here to read full article:
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Why You Should Enforce Your HOA's Rules Reason 225: Justin Bieber
What does this teen heartthrob have to do with HOAs? He is a high-profile
example of why it's critical for you and your board of directors to enforce
your HOA rules. Here's why.
Click here to read full article:
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Justin Bieber and HOA Rules: Seriously, There's a Connection
In this week's tip, we discuss why you should care about the goings on of teen
heartthrob Justin Bieber. For at least a few minutes, at least. You probably
hate that you're reading a story about Justin Bieber on an HOA website. So
we'll keep his back story brief.
Click here to read full article:
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