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Short Term Rentals and HOAs

By
Services for Real Estate Pros with National Event Rental

A lot of condo and townhouse communities state in their HOA rules that if a property is leased, it must be for a minimum time period (usually 12 months) and approved by the HOA board. The most common reason given for disallowing short term rentals is that they will lower property values through a neglect of maintenance of the property. They also believe that anyone staying only a short time is there only to party and will create a huge, loud, late night nuisance to all of the neighbors. Both of these reasons are highly faulty and rarely happen.

Most of the people that rent short term are families on vacation that are looking for more space than the average hotel room. This allows them to stretch out and not cram a Mom, Dad, and 2 or 3 kids into one small room. It also gives them the comforts of a kitchen, separate bedrooms and bathrooms, and other household rooms. A family isn't likely to make late night noise, and the noise that is produced would be the same as any other family living there. The other type of renter tends to be groups of friends that rent a house for an event. This could be a music festival, sporting event, wedding or reunion. These types of renters choose a house for many of the same reasons that families do, but contrary to most thinking, these groups will be at the event for most of the vacation, not in the house. Therefore, the noise and disturbance that may be created is produced at the venue of the event. Also, if the city or neighborhood is close to the event but restricts short term rentals, the fallout of the event will produce just as much as a disturbance.

The other reason most often cited is the lowering of property values through lack of upkeep. HOAs state that renters and investors will not have the same pride of ownership and therefore will not provide maintenance to the property. This could not be farther from the truth. If an investor is halfway serious about renting their property, they need to have the best upkeep in the neighborhood to keep a steady flow of renters. Most investors put the time and money into finding great housekeepers who come in after every tenant leaves. They also find reliable lawn care companies. A lot of their business is based off of reviews and recommendations from previous guests. If a guest found the place filthy, an unkempt yard, or dilapidated structures, they would make sure others knew about it. An investor knows that they need to keep their tenants happy, for both repeat business and referrals, so their property might end up being the model home of the neighborhood.

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Jim & Maria Hart
Brand Name Real Estate - Charleston, SC
Charleston, SC Real Estate
Hey Bill, I agree with you on some points but would like to share a little on the short term rentals. As part of a condo community (on-site sales agent/investor) I feel that by placing stipulations on week to week or month to month is  a great thing. I feel that you are giving the full time resident a "peace of mind" knowing who their neighbor is. If you have someone moving in and out every few months, there is no bond established with the community. I appreciate your blog and wish you a great week, Jim
May 05, 2008 04:27 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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