HOA issue- short term rentals

HOA issue- short term rentals

Member since 2022 · 23 posts · 2 votes

Hello community,

We have several short-mid term rentals in NC. In one of our units, the HOA started pressing - asking that we stop doing that since their rules say no short-term rentals (there is no minimum set of days, just a generic no short-term, AirBnB, VRBO etc..). We usually start our contract levels from one month going up to a year, so we call it mid-term, and we usually have between 4-8 tenants a year in each unit. In any case, in the past couple of months, one of the neighbors decided he did not like that and started to investigate our tenants when they moved in, and once they told him that they are there for less than a year, he reported it to the HOA, and I get a warning email from them. It's very annoying, and it's not like we host parties or anything like that. Just helping families who are moving to the area. He just does not like the fact that tenants might move there for less than a year. My first solution was to have my current tenant sign a contract for a full year with an option to leave early without fees. I submitted it to the Management Company, and they approved it, but I just got another notice telling me that someone talked to the tenants, and they said they would leave when their house is finished. So they consider it as short-term, and that's another warning. Not sure what they (HOA) can really do at this point as I submitted a contract that goes under their guidelines.

Trying to see if I should just say- well, they have a contract for a full year- just like your guidelines say. There is nothing I can do if they want to leave early.

Or should I add that this feels like harassment, and the next time I get a note like that, the response will come from my lawyer. 

I know it's an uphill battle with HOA's on this subject, so trying to navigate this correctly.

Happy to consult with a lawyer as well. 

Tanks everyone!

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  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    3y

    Find out the penalties you'll start to pay and find out if it's still worth it. You read the cc&r's and saw that STR rentals weren't allowed and bought it anyway. I would assume around $50-100 a day if they're strict.

    If the cc&rs are old you can sometimes get away with monthly rentals but many are updating to specify a minimum number of months. 

    You've already set a pattern of STR so you won't be granted much leeway if suddenly you have a couple more tenants that never intended to stay a year. Don't forget, they'll be paying a lawyer with your Hoa fees to beat you in court, you can't outspend them.

    If you're new to investing your realtor really let you down not telling you how important cc&rs are, especially if you told them you planned to do STR. If you've bought a few properties before it's on you. You already say you know they aren't allowed. Conform or sell.

  • Member since 2022 · 23 posts · 2 votes
    3y

    Thanks!

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