STR not allowed notice from HOA - Frisco, TX

Sharf3
Level 1
Oak Point, TX

STR not allowed notice from HOA - Frisco, TX

Hello Friends. I have a property in Frisco, TX (DFW metro) that I am hosting. The HOA recently sent a notice to all the homeowners stating that  Short Term Rentals (STRs) are a direct violation of the CC&R bylaws. The governing rules for Leases dictate that it be for a minimum of 1 year, include entire home and the lease be restricted to a single family - obviously STRs violate each of these. They've threatened the Owner with fines etc if this is not stopped right away.  Apparently, they were made aware that some of the homes in the community were being used for STRs and sent the notice to all homeowners, not just specifically to me - so can I ignore this until a notice is sent specifically to me? Also, what kind of fines are we talking about?

 

Does anyone have experience dealing with something similar around DFW area or TX in general? I was researching this and found out that the TX Supreme court addressed this a few years ago and basically ruled that HOAs can't prohibit homeowners from STR rentals. There are some caveats to this ruling though and I am planning to seek legal advice, but would really appreciate opinion from other hosts in similar situation. 

 

https://www.jdsupra.com/legalnews/court-addresses-hoa-attempt-to-restrict-22251/

 

Thank you so much!

4 Replies 4
Lorna170
Level 10
Swannanoa, NC

@Sharf3   If the HOA documents that were in effect when the property was purchased state no rentals of less than one year, then those are the rules that were agreed to at purchase.  If you intend to keep renting, you will need to speak to an attorney who specializes in rental law.  Fighting an HOA can be expensive.  Good luck.

Thanks @Lorna170 I am going to seek legal help.

Russell288
Level 2
Kingman, AZ

This is a question for a local attorney to issue an opinion.  I have answered the question for Arizona, as it also has statewide protections for short term rentals.  Our HOA recently sent a letter pointing out that short term rentals violate our CL&R's, pointing to some vague language about operating a business and residential purposes only.  However our attorney's position is that due to the state law the HOA would need specific unambiguous language prohibiting short term rentals for this to be enforceable.  Also I believe in your case there is a difference between leases and short term rentals.  Simply because the rental is less than 1 year means nothing because it is NOT a lease in the strict sense of the word.  In our case we are simply ignoring the letter and will fight if they decide to pursue the matter.

AnnMarie69
Level 1
Euless, TX

Hi, I have a home in Frisco and recently started my STR and received the same notice. Just curious if you're still running your STR and if HOA has backed down on their violations. TY!