HOA short term cat and mouse

[Michael1523]

I would love to know how many listings are violating HOA rules, probably any listing that has an HOA is in violation.  I don't know any HOA that allows short term rentals. So the big question is, how long can you get away with it, what are the tricks to keep it a secret, and what is the worst case scenario?  I have read about the 30 day trick where you rent it for 30 days even if they leave early, the contract still says 30 days which is compliant..

I guess it depends on how much of a dictatorship it is. There are some lax HOA's and some very strict. It also depends on the house or unit, is it in a quiet area? Do you have nosey neighbors? Does a board member live near by? Did you have a bad rental that got out of control, party, parking, police, etc. What if you just tell the HOA it's your family members? isn't it their burden of proof? many variables on if you will even get caught. 

Then what happens when you finally get your first letter - do you ignore it? I know with my HOA if you just keep ignoring eventually it goes to the Attorney, then if you ignore that, they can only fine you up to $1000 - then it just sits on your account and nothing else is done until you sell. I'm sure every HOA has different ways of dealing with it. And it also depends on how much money the HOA want's to spend on Attorney/Court fees. 

Any insights would be appreciated.. I'm sure there's thousands of listings that are in HOA violation but they just never get caught , not bothering anyone and no one will be any the wiser! lol

[Paul154]

You speak well of the capriciousness of housing laws.

The only guiding light is:

If it's a problem, its a problem.

If it's not a problem, its not a problem. 

My HOA is very loose and it doesn't prevent STR.

For those HOAs who prevent STR,

some are run by pragmatic boards who look the other way.

Some HOAs have nosey neighbors. 

Some HOAs have members who want Airbnb.

It's all very capricious and luck of the draw. It is so capricious, that one could willingly break the bylaws and not feel too guilty about it.

[Michael1523]

Paul,   Well Said!!

thanks for your response, I agree, it's the luck of the draw - I'm just going to try and see what happens.. maybe I'll get away with it for a month or a year - who knows - then if i'm caught I'll ask for forgiveness and give it a rest.. then just start it up again when the dust settles... the boards change, the management companies change.. your neighbors change.. laws change... Everything changes so it's just a matter of time and patience ...  

[Robin4]

@Michael1523

Michael, I can't categorically speak for your part of the world but in mine the situation is....

HOA's do not allow short term rental because STR's will void the developements insurance cover. The reason being you have altered the terms of cover which the insurer accepted when they offered their policy! 

Most insurers will cancel their insurance cover, or decline to renew it, the moment they become aware that STR is happening in their insured space! It is not just your property that gets 'blacklisted' it's the entire development!

All I can say is, you can try and run the gauntlet as long as you can and hope that the HOA don't get wind of what you are doing or, you can be pro-active! Approach the HOA and give them a list of insurers who will cover STR's. Explain that your insurer will be responbsible for any liability issues that may arrise and offer them a percentage of all hostings to be paid into the HOA management fund.

Michael, I have seen this work in the past and it is something I am eager to see promoted because once a few get accepted it will become like a tidal wave and all hosts in HOA developments will benefit. Insurers now no longer ignore the STR market because of it's massive size. Airbnb alone are now larger than the 5 largest hotel chains in the world combined....Insurers have realised that there is a massive pot of money here to be had....all it needs now is the cooperation of every one concerned to put it in place.

I am not saying you will meet with success but it may be worth a try, and you will be no worse off...sooner or later they are going to close you down anyway!

Cheers......Rob 

[Michael1523]

-Rob,  I disagree that it's a "gauntlet" or "they are going to close you down anyway" - as I stated here in the States we have alot of ancient draconian rules and regs that are just ridiculous. Worst case scenario is you get a slap on the wrist, if that.. And there's a good chance you'll never get caught if your not causing any trouble.  As Paul mentioned aboved some HOA's actually want it to avoid empty unkempt unmaintained units..

As the old saying goes, it's better to ask for forgiveness than permission. 

And while asking for forgiveness at that point maybe investigate insurers that support STR's and sharing funds with the HOA. I guarantee that's a losing battle here in the States! lol

[Robin560]

It is clearly illegal in our condo complex. We all enter our units thru a common area that you need a code to get into. It is a burden on our safety parking insurance etc .  There are several here.  How do we stop this?