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Court decisions hold that short-term rentals are not a "business or commercial use" under typical, basic HOA declaration wording

Two very recent cases bolster the other extant cases in holding, uniformly, that a homeowner's engaging in short-term rentals with a residential dwelling house is not a "business or commercial use" under typical, basic HOA wording that grants express leasing rights but does not otherwise regulate leasing. Typically, the only restriction found in declarations -- especially older ones that HOA's haven't amended -- is for "business or commercial uses." That's a common municipal ordinance restriction too. With the rise of HomeAway, VRBO, and other rental and home-sharing sites, short-term renting is a contentious issue. The problem in the HOA context is that many declarations are simply silent as to any leasing restrictions, leading the average homeowner to believe he or she has an untrammeled right to lease out a home for whatever term, short or long, so long as the renters aren't causing problems. If an HOA declaration is silent, an HOA needs to amend its declarations to address the issue. A silent declaration does not allow an HOA to take away rental rights. Read More...
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BPOA v. Hays Short-Term Rental Lawsuit

I have posted the chief pleadings and briefs in Briarcliff Property Owners Association, Inc. v. Marvin William Hays, Jr., Cause No. D-1-GN-11-002233 (Travis County 98th Judicial District) so that others interested in the short-term rental issue may benefit from all the arguments made in that case.

The court invalidated the Briarcliff HOA's short-term rental ban on March 14, 2012, but the HOA continues in its lawsuit against one homeowner. Read More...
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