How do you know if your city or subdivision allow STR

Question

If there is not something in the HOA bylaws against short term rentals is it safe to do a short term rental in that subdivision or I should I called the HOA and ask? I've known one particular HOA where the person that was over the HOA was death against short term rentals, but there was nothing in the HOA bylaws stating that they were disallowed. They went so far as to hold special meetings trying to get the other residents to past new HOA rules. A person like that if asked if HOA was was allowed might say no even If it wasn't disallowed in the bylaws. Your thoughts on that please.

Also I am looking to do a short term rental in a town called Converse Texas at the moment. Does anyone know the process of dealing with Converse Texas? Am I supposed to call a certain department of the city etc.?

Nathan Gesner · Answer

The Planning and Zoning office should be able to tell you. However, you also need to check for any homeowner's association or covenants that may be even more restrictive.

If there are no existing HOA rules, then you can legally do it. However, the HOA could institute new rules to ban it and then you'll have a fight on your hands. It's best to avoid anything in an HOA because they can make your life hell or your renters could make your life hell by ignoring HOA rules.

Robert Gilstrap · Answer

@John Underwood The renting of property for residential use has been upheld in multiple courts as a noncommercial activity which makes complete sense if you think about it. People who go to an Airbnb sleep, take showers, watch TV, etc. All non commercial activities. On the other hand if you had business signage up at the house, a front desk manned by employees, a restaurant on site that served food, etc. that would be commercial activity. Don't fall for the ******** that city planners try in redefining zoning issues.

You have to have commercial insurance on a STR rental property to be covered.

@Joe S. The first thing you should do is read Tarr vs. Timberwood Park Owners Association where the Texas Supreme Court ruled in favor of a homeowner who tried to rent his unit out in an HOA and he won. VERY important case for you.

Do not assume that any HOA automatically can restrict you; I have found almost no HOA has the right language in their covenants to stop you from doing short term rentals.

For instance you said:

"The city said they are fine with short term rentals the home owners association of that particular property said no rentals less than 90 days."

So my response is NEVER go with what ANYBODY says. READ it for yourself, don't assume anything. Do the covenants say no leases shorter than 90 days or does it say renting. How is renting/leasing defined? The reason I say this is people have a very big misconception that allowing a guest stay at a home is somehow a sublease when it is not at all.

Leasing confers legal rights in the form of a leasehold interest and gives occupants certain rights under law.

When you do an Airbnb you are giving a "license" to occupy. Sounds minor but it's a MAJOR legal distinction. Persons granted a license can have that license revoked at will by the grantor for any or no reason. Hotel/Motel stays, campground stays, bed and breakfast, Airbnb, vacation home stays, having your sister stay at your house during thanksgiving; these are all examples of licenses being granted.

I agree with others that HOA's are not my first choice but don't be automatically dissuaded just because someone says you cant do that.

David M Trapani · Answer

1. Enter the name of the city and state of interest into your search engine;

2. Type in ABC City, XYZ State followed by the words: "Short term rental ordinance";

3. This should bring up the local laws (if any) plus any news articles on STR rules in the area, which are often hot topics;

4. If nothing comes up, it's possible (especially in outlying areas or smaller towns) there are no regulations - which if that's the case you have Uber private property rights and can STR to your hearts content - zero regulation;

5. If the City and / or County has a permit application process read carefully (before investing) as to whats required; some are flexible (easy) others such as San Francisco or Nashville are extremely tough;

6. Read all news articles to see status of the STR laws - As Nathan points out, this can be a moving target and rules and laws can change;

7. If you're in an HOA or your sub-division has C, C & R's read all governing documents and C, C & R's; Generally prefer to avoid STR's in HOA's because they tend to outlaw them or over regulate them; exception may be an extremely high demand vacation or tourist destinations;

8. Last but not least - buy in a high demand / tourist destination with lots of community amenities; during Covid esp within 2-3 hours driving distance to major cities i.e. Palm Springs vis a vis Los Angeles or Pigeon Forge, Gatlinburg, Sieverville vis a vis Knoxville, Nashville, etc. Always have an exit strategy and viable alternative use such as LTR; moving in yourself; make quality desirable "hard" improvements (if within budget, due respect to reserves, pay extra principal on any mortgage each month) to force appreciation; be prepared to have the best, most desirable property in the hottest location in case you need to sell or 1031 out due to changes in laws or political climate.

Best wishes & good luck Joe!

Kenneth Garrett · Answer

@Joe S.

Here is the difficulty with STR in a city or suburb. Contact them and ask for the ordinance. The rules could change at any time. Most ordinances will say any occupancies of 30 days or less fall under the hotel requirements. This would mean in a subdivision it would not be allowed. Be very careful confirming it is allowed and if so what the rules are. I’ve spent a career reading zoning ordinances. Be careful. To add to the difficulty if you have an HOA read the bylaws. Be aware of percentages allowed within a subdivision. HOA and city requirements are two different sets of rules, but each applies independently.

This is why vacation areas are easier to run a STR. The economy is driven by the hotel business and STR business. There economy thrives on vacationers ready to spend money.

Good Luck.

Scott K. · Answer

Call the township. Call the HOA. You're about to spend potentially hundreds of thousands of dollars and you aren't going to simply call them to inquire? The more information you can get the better. There are always upset community people who will fight and scream against any sort of change, but it's irrelevant to their bylaws as you stated. It's usually safer to find a community that already allows them, as it's unlikely they're going to backtrack on all the new income sources they're loving.

Nathan Gesner · Answer

Always read the fine print. More and more places are cracking down. I know one HOA in my area that restricts short-term rentals to only properties that are owner-occupied 51% of the time. If the owner leaves for the winter, then they can rent it out short-term for up to half the year.

Michael Elefante · Answer

@Joe S. The best route to go would be to check out the gov't website and see if they have anything specific on short term rental laws. Many cities now require STR permits. These often have guidelines around zoning and what qualifies for a STR own-occupied permit, STR non-owner occupied permit, or if it is not allowed at all. If still no resources available online, it would be in your best interest to call zoning / codes office to ensure you aware of any potential local laws. Another thing to be aware of is what is required to obtain a permit. Nashville, for example, you need to pass a fire marshal exam. Many of these type of exams require a certain amount of fire alarms that are interconnected, window size for emergency egress, etc. Just something to be aware of. Most of these types of permits cost money in the form of annual permit fee.

Additionally, I would check with the HOA. If the HOA is hard to find contacts for, go through your RE agent or the selling agent to provide that info. Some HOAs drastically increase the amount you have to pay per year in order to operate as STR. I've ran into this in Nashville. Some HOAs don't allow it at all..

John Underwood · Answer

Check the HOA covenants and restrictions. Look for running a business or any commercial activities. This would ban a commercial STR business.

I think it would be safest to not try and do this in any HOA community.

They call your county code enforcement office to see if it is allowed.

Collin Hays · Answer

I think it's even safer to find a community that embraces them. Because a short term rental is technically allowed by ordinance doesn't translate into a happy life for you. If you go into a primarily residential neighborhood and open up a hotel, you are going to be chased out by the "hounds of Baskerville", guaranteed.

How do you know if your city or subdivision allow STR

How do you know if your city or subdivision allow STR

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