A fairly recent article in HOA Resources by Laura Otto discussed the impact that short-term rentals have on communities.
A survey from the Foundation for Community Association Research finds that 62% of the respondents are concerned that the investor won't maintain the home or unit to the standards of the community. 64% of communities prohibit short-term rentals (less than 30 days) but about 20% don't have any rules restricting rentals or leasing in the community at all.
Are you or your board concerned? Some things to remember:
- Boards should look at their documents to review their current rental restrictions.
- Contact the association attorney to discuss what the current law provides and how the association can better prepare themselves for possible governing document changes.
- Short-term rentals can have an impact on resales. Many buyers want an "owner" lived in community.
- Homebuyers may have problems securing a federally backed mortgage if the community can't regulate the percentage of rentals.
- It is well documented that a large percentage of violations are caused by tenants (short-term or not). Rule enforcement becomes difficult.
- It is also documented that communities that have are a large rental community may have more common area damage than those communities where rentals are tightly controlled. This causes increased maintenance fees for all owners.
For more information on short-term rentals, click here.