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Updated almost 7 years ago on . Most recent reply

Account Closed
  • Investor
  • Princeton, TX
1,080
Votes |
1,900
Posts

Texas Supreme Court AirBnB Decision.

Account Closed
  • Investor
  • Princeton, TX
Posted

The Texas Supreme Court gave a major win to short term renters in Texas today.  Here is a great article about it.

https://www.texastribune.org/2018/05/25/airbnb-hom...

In short, Texas HOAs will find it basically impossible to restrict rentals of any length.

That includes AirBnB, Homeaway, sober living, transitional housing, habilitation services and so on.

PS Yes that means a person can rent a home in an HOA for one day and use the pool, golf course, ski lake, or whatever other amenities the owners get.

Most Popular Reply

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413
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Bob H.
  • Rental Property Investor
  • Cedar Park, TX
272
Votes |
413
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Bob H.
  • Rental Property Investor
  • Cedar Park, TX
Replied

@Account Closed, this decision turns on the narrow question of what constitutes residential use of the property, as opposed to business use. HOA rules and ordinary leases often require residential use, and the HOA had a weak argument in stating that renting a place to stay for a short time is not a residential use.

Many HOAs have deed restrictions that say homes may not be rented for terms shorter than a minimum, such as 30 days or six months. The HOA in this case did not have a minimum rental duration and therefore had to rely on the residential use argument.

Nothing in this case is going to allow short-term rentals in communities that require all leases to have long terms. 

The court's opinion is at http://www.txcourts.gov/media/1441730/161005.pdf 

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