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Why short-term rentals are a hot-button issue for HOAs

On Behalf of | May 6, 2022 | HOA Law |

Many Texas homeowner’s association disputes arise over short-term rentals. Homeowners often like to offer short-term rental opportunities because they have the potential to bring in considerable money. However, many HOA communities are restricting their residents from offering short-term rentals, and there are a number of reasons why they are doing so.

Per the Homeowner’s Protection Bureau, many HOAs want to restrict their homeowners from offering short-term rentals for the following reasons.

Why some HOAs are against short-term rentals

Many HOAs are against short-term rentals. Often, HOA boards cite the fact that while they offer benefits to the homeowner by charging a fee for the space, they also come with drawbacks for others living in the community. For starters, short-term renters are more likely to make messes and noise throughout the day and well into the night than actual residents. Some residents are also resistant to short-term renters because they feel as if the regular coming and going of renters disrupt their quiet communities and causes parking and traffic issues.

Why some HOAs are able to restrict short-term rentals

Whether an HOA has the ability to restrict its residents from offering short-term rentals depends on several factors. An HOA needs to have legal and contractual authority to do so. This generally comes in the form of either state law, an HOA declaration or covenant or a combination of both. HOA declarations occur when residents of an HOA community agree to certain terms when it comes to living in their communities.

In summary, many HOAs do have the power to restrict short-term rentals, but they need to have a legal leg to stand on in doing so.