Great thread here. Looks like most are not in favor of this approach. Our city recently issued an urgent ordinance restricting STRs and I missed the boat (for a number of reasons)to gain proper licensing and it was capped within 30-60 days.
After consultation with my lawyer, the approach of membership/association was recommended. Based on the law of memberships and associations setting up your residence in this way would change the way the business is structured. Hence, LLC rents to the membership/association. All members pay a nominal membership fee and agree to a membership agreement.
While I can appreciate the resistance to standing up to municipalities I also appreciate the opportunity to stand up to them to reaffirm your rights as a business owner.
Also, let's not forget that the rationale for these ordinances is poor STR operators and LTR accessibility. There may be some lobbying from hotels corps and real estate groups as well. The bottom line there are many operators out there that run a tight ship and have zero complaints and great ratings that are now being pushed around by these municipalities. Yes, we could easily transition to an MTR or LTR but Im not sure I want to bow down and lose out on a great business venture because the city wants to impose new regulations. At the end of the day, I agree that this is a risk/liability/profitability decision.
Appreciate the conversation.
