(Google Florida condo special assessments)  And, you are correct, the HOA can impose numerous limitations that prevent it from being a good investment.

If we need clear definition I do think it will involve legal process which will be expensive and even more unnecessary.

(A) For an accessory dwelling unit described in subparagraph (A) of paragraph (1) of subdivision (e), a local agency, special district, or water corporation shall not require the applicant to install a new or separate utility connection directly between the accessory dwelling unit and the utility or impose a related connection fee or capacity charge, unless the accessory dwelling unit was constructed with a new single-family dwelling. home."

That's exactly how HMLs are avoiding the licensing requirements in some States as imposed by Dodd Frank.

If you want to have one, fine, but they are unnecessary for a small business model like yours, just another expense as far as I'm concerned.

Companies typically have business models which of course are not set in stone, however, changing the way a company operates should not be imposed by a single client simply because it works better for them and not the management company.  

Where the Code or the Regulations do not specifically impose a requirement, we should not apply it.

State Taxes: Some states also impose state income taxes on rental income and capital gains from the sale of property.

While Palm Springs does have an established STR market, the city runs a tight ship and imposes strict regulations and fees on hosts.

In fact  there's a company that markets quite heavily on this BP that sells uneducated investors formation packages that are completely impractical and unnecessary but there are plenty of accountants out there who do the same.