A Guide to HOA Bylaws and Homeshare Hosting

Homeshare and Your HOA

Regardless of your stance on home-sharing, we’ve all seen the prices of hotels begin to skyrocket over the last few years. This upcharge in hotel rates has led to a boom in the use of services like Airbnb, and many Association boards have begun to ask lots of questions about the trend.

If your association has seen a surge in Airbnb hosts or received calls from tenants about unruly “renters,” we invite you to take a look at your association management’s guide to Airbnb and how your Board can handle the situations that come with them.

What Is a Homeshare Rental?

A homeshare rental is a situation where a host receives money from a guest in return for short-term vacation lodging. Arrangements for the rental are made through an application where both parties agree on a date and price. 

The average length of a stay is 4 days and the rental can include the entire home, a bedroom, or an available couch.

Vacation rentals are an affordable alternative for families on-the-go, so, the affordability, combined with the profit owners receive, makes a temporary homeshare arrangement an enticing option on both ends of the deal.

Why Would an Association Disapprove of Short-Term Hosting?

An association Board is responsible for ensuring community members abide by the rules and regulations that maintain order. While most homeowners understand the general laws of the land, there is no guarantee that vacation renters will possess the same knowledge.

Some tenants who rent short-term rentals may treat the quarters and community areas like their own homes. However, there is always the exception that ruins the party for everyone. These properties can create horrendous situations for association management, neighbors, and anyone in the area.

Your planned community is expected to maintain a standard of living and neighborly etiquette. Unfortunately, visitors ready to party away from home can create issues in not only the home but common areas like the community pool and parks.

How Can the Board Prevent Problems?

If short-term rentals have become a headache in your community, take action as a Board and implement a ban if one doesn’t already exist within the bylaws. Most Associations have regulations within CC&Rs that prohibit rental agreements that last less than 6 months. If these provisions are already in place, your Board has the information necessary to keep the community free of partying vacationers.

Keep in mind that if there is no official language preventing rentals in your community, the Board is not allowed to pursue corrective action against owners acting as hosts until the documents have been amended.

Additionally, rules can also be put in place to govern longer, less transient rentals.  Associations can make rules outlining how many homes in their community can be rented at a given time and can even require rental applications and fees for renting.  

Let Excel Association Management Help Navigate the Rental Waters

Rules regarding rentals are a hot topic right now, and the state laws governing them are changing frequently.  At Excel Association Management, we are well-versed in implementing and managing rental restrictions in community associations.  Reach out and find out more about our services we’ve provided to communities like yours.

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