Many people buy condos to earn extra income through short-term rentals like Airbnb. With Houston’s vibrant tourism and growing reputation as a convention destination, it’s no wonder this idea is so tempting.
However, while short-term rentals can be profitable for individual condo owners, they often bring challenges for condo associations and long-term residents. This is why some associations decide to limit or ban these types of rentals.
What Texas law says about HOA rental restrictions
In Texas, condo associations have a lot of power when regulating short-term rentals. Your association can legally restrict or ban short-term leases as long as the rules are clearly indicated in your governing documents.
Generally, the association can enforce rules written in the community’s bylaws and deed restrictions. You may levy fines or pursue legal action against rule-breaking unit owners if necessary.
Why you might choose to limit short-term rentals
Most condo associations implement short-term rental restrictions for several compelling reasons:
- Security Concerns: Having strangers frequently entering the building can make it hard to keep the place secure.
- Wear and Tear: More guests mean more use of shared spaces, which can lead to quicker wear and tear.
- Higher Costs: More visitors can lead to increased maintenance and administrative expenses.
- Disruption: Frequent new faces can be unsettling for permanent residents.
- Insurance Issues: More guests may complicate property insurance matters.
- Parking Problems: More visitors can lead to parking shortages for unit owners and long-term residents.
Your association may consider exceptions for unit owners who can address these concerns. For example, they could offer higher maintenance contributions, limit amenity use for short-term guests or conduct a thorough guest vetting process.
Making the right choice for your community
If you’re part of a condo association, remember that you have the legal right to set rules about short-term rentals. The key is ensuring the terms are clear in your official documents. When creating or updating these rules, focus on making them clear and fair. Consider working with a legal professional to ensure the rules comply with Texas laws.