Deed restrictions that could restrict property use as a Short Term Rental

[Cullen Eckert]

All,

I have a short term rental in the Texas Hill Country that is in a neighborhood that has deed restrictions. I recently got a letter from a group of neighbors notifying me that the deed restrictions restrict use of the properties in the neighborhood to "single family residential use and that no part ccan be used for commercial or business purposes". I replied to this letter quoting relevant Texas case law (JBrice Holdings, L.L.C v. Wilcrest Walk Townhomes Association, Inc. (No. 20-0857) and others) showing that STR use is not considered business or commercial.

The next letter I got was only from one neighbor (the leader of the pack...) and said I was in violation of deed restrictions since some guests appeared to be "unrelated individuals" and the deed restrictions demand single family use. I am curious to see what everyone thinks of this argument. 

For a little more background we have a valid STR permit from the city we are operating in and the R1 zoning (single family residential) allows for STR use if you have a permit. My deed restrictions do not define "single family" or "single family residential" and this term is only mentioned once (as shown above) in the 7 page document. I think I know what my response may be, but would be, but I would like to hear your opinions.

Thank you!