9 Replies Latest reply: Sep 5, 2014 7:23 AM by susaninrehoboth RSS

    Property Manager says I must cease all VRBO rentals due to condominium rules

    New Member

      My property manager has sent me a notice stating that I must cancel all of my upcoming rentals on VRBO immediately due to his understanding that it violates a section in the condominium declaration that states:

      "Each unit shall be occupied and used only as a private single family residence and for no other purpose,”. He says this section of the Declaration prohibits the type of short term rental arrangements that I'm using the suite for.

       

      From my understanding, an owner can rent his/her suite for as long or as short as he/she desires. I also understand "private single residence" to mean that two families cannot occupy the same suite.

       

      Please let me know your thoughts and insights on this situation.


      Thank you!

        • Property Manager says I must cease all VRBO rentals due to condominium rules
          New Member

          This is a tricky situation.  Anytime you are dealing with a HOA like a condo association there is a "Deed Restriction" on your property that states you must follow all rules and regulations as set forth by the board of directors or their designee.  Simply that means that if you do not follow the rules of the HOA they have the right to revoke your title to the property without recourse.  Now it is very rare that an HOA will take your property away, unless you are not paying your HOA fees.  However with the number of properties that are in foreclosure and not paying their HOA fees HOA's are now charging an application and or tenant fee for all renters.  The backlash to this is where a large number of HOA's that were not enforcing their rules of minimum rental stays are forced to enforce these rules in order to collect the extra monies that are now required.   A private single family residence tends to include a stipulation about renters normally it will allow a rental of 6 months or greater depending on the laws of the state.  i.e. Florida would be 6 months and 1 day or longer.  Depending on the HOA rules each violation could cost up to $5000.  On top of all the HOA rules you also have to watch out for city and county zoning regulations.  They like to make changes that increase tax revenue.

          • Property Manager says I must cease all VRBO rentals due to condominium rules
            New Member

            I had a similar run in with the local city.  You don't mention what state you are in, but Florida has a new law that was recently signed into effect that states "A local law, ordinance, or regulation may not restrict the use of vacation rentals, prohibit vacation rentals, or regulate vacation rentals based solely on their classification, use or occupancy."  However, this provision does not apply to and local law, ordinance, or regulation adopted on or before June 1, 2011.

             

            I would start with checking the state and existing local laws regarding transient public lodging establishments -- including the exact definition of a 'vacation rental'.  Whereas you have to abide by the HOA rules, they cannot be in direct conflict with state and local laws.  Your HOA's definition seems to be open to a bit of interpretation -- by both sides.  It is my understanding that when a regulation is not clear, you would refer back to state and local laws for clarity.

             

            Good luck!

            • Property Manager says I must cease all VRBO rentals due to condominium rules
              Contributor

              We have a 3 month rental minimum but I know people rent for shorter times. However, the HOA docs say you will face legal action if you don't adhere to the rules. Really??? So if I had a 2 month rental, they'd sue me? I can have anyone I know use the place for free without issue but there is definitely an issue with accepting money in a rental situation.

              • Re: Property Manager says I must cease all VRBO rentals due to condominium rules
                twobitrentals Community All-Star

                HOA 's have many restrictions and one must adhere to them once they purchase their property. Other owners rely on everyone agreeing to those HOA's. Some owners even buy a home within a HOA just because of the restrictions.

                 

                The wording that he has quoted is quite vague in what constitutes a single family dwelling. Does it state that you can not operate a business out of the condo? Do you consider it a business? Do you file a schedule "C" or schedule "E"? C= Business income, E=Rental income. While I am not an expert on this at all and it is a very touchy situation for many.

                 

                I would find out if there is specific information about what type of rentals are allowable, if at all. Some condos require a certain amount of owner occupied units for the financing reasons for future buyers.

                 

                good luck and let us know!

                • Re: Property Manager says I must cease all VRBO rentals due to condominium rules
                  lavenderlady Active Contributor

                  I recommend you consult with an attorney sooner rather than later.

                  • Re: Property Manager says I must cease all VRBO rentals due to condominium rules
                    susaninrehoboth Senior Contributor

                    You are between a rock and a hard place. Has something changed with the HOA regulations since you signed on with the property manager? If not, this is strange timing. The wording you quoted does not state you cannot rent short term-only that if you rent, it must be to single families. They rent your condo and then say they have to cancel your rentals because of HOA regulations? Doesn't make sense to me.

                     

                    How many units are in your condo building(s)? Are you the only owner renting for less than 3 months? If not, do you know other owners that have different property managers? If so, has the property manager said anything to them? Something seems off. I wonder why they made this determination.

                     

                    A lot of property managers have their rental agreement with guests worded so that renters cannot get a refund of the money paid to rent a unit if the manager can find something "similar" for them to rent. I wonder if the property manager got similar units to rent at a higher commission and this is their way to get out of the contract they have with you. Have you received rent money from them. If so, are they asking for the money back?

                     

                    If nothing else, the property manager has a responsibility to know the rental terms before he accepts a listing. I'd suggest running this by another property manage to ask if he/she sees anything in the HOA that prohibits short term rentals. Perhaps your problem is a less than stellar property manager, not a problem with HOA regs.

                    • Re: Property Manager says I must cease all VRBO rentals due to condominium rules
                      susaninrehoboth Senior Contributor

                      Gracious, I just noticed this is a 3 year old post. It would be nice if the o p gave us an update.