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Updated about 4 years ago on . Most recent reply

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Mike Cichy
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airBnB in subdivision HOA rule says for residential purpose only

Mike Cichy
Pro Member
Posted

Hello,

I am looking to buy a house in my subdivision and wonder if I can make it an airBnB?

The HOA rule states, that lots are for residential use only? Does someone have any experience with that?

Thank you for your feedback in advance.

  • Mike Cichy
  • Most Popular Reply

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    Steve K.
    • Realtor
    • Boulder, CO
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    Steve K.
    • Realtor
    • Boulder, CO
    Replied
    Originally posted by @Robert Gilstrap:

    @Steve K. SF STR's are nothing like hotels; they have no parking lots, they don't have hundreds of strangers staying together in different rooms, they don't have onsite 24/7 staff performing housekeeping, front desk or maintenance, they don't have bars, restaurants, common areas, public restrooms or meeting spaces located on site, hotels are commercial structures designed to house hundreds or even thousands of people under one roof.

    I'm actually a bit surprised that someone who is licensed thinks that something is "common knowledge among professionals" isn't more versed in the legal concepts and arguments for and against the topic but regardless my stance is still the same. Just because "they do it this way where I'm from" doesn't make it gospel for everyone, everywhere else.

    It's not my opinion that STR's are commercial activity, and I have no desire to debate the issue with you, I'm just bringing up the fact that it's the way hundreds of courts have ruled beginning with NYC vs. Airbnb in 2011. I'm not an expert or a lawyer but I believe that may have been the case which established a legal precedent which was repeated soon after in LA, Miami Beach, San Fran, Santa Barbara, Santa Monica, Las Vegas, Denver, Boston, Paris, Barcelona, Amsterdam, London, Berlin, etc., etc. etc. in the early 2010's then spreading form major to smaller cities and towns all over the world during the past decade. Anyone looking to purchase a property to operate an STR in 2021 absolutely needs to be aware of this background and research the laws in their area as a starting point. Municipalities have the right to create and enforce zoning laws and they often consider short term rentals business activities which are not allowed (or are severely restricted) in residentially zoned areas. Again, it's not my opinion so please don't shoot the messenger here, just stating what I thought was well-known. There have been so many famous court cases over the past decade that have established STRs can be deemed commercial activity and treated accordingly that I thought it was common knowledge by now, but I guess I was wrong and I apologize if I offended anybody.

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