Tag: Rentals

Here Come the Corporate Buyers: How to Prepare Your Clients Now, Part 1

Corporate investors are snatching up homes in community associations across the country and renting them out. Not surprisingly, “regular” homeowners in these communities aren’t too happy with the results. “If a board thinks this will never happen because of the price points of their homes or whatever, they’re gravely mistaken,” says Scott Weiss, of counsel…

State Supreme Court Has New Spin on “Residential Purpose”

We’ve covered several cases over the past couple of years where state courts found that an association’s residential use restriction prohibited short-term rentals. But now the South Dakota Supreme Court has held otherwise. That court concluded that the definition of the term “residential purpose” includes short-term rentals. “This is a different interpretation than I’ve seen…

Court Says Short-Term Rentals are “Residential Purpose”

We’ve covered several cases over the past couple of years where state courts found that an association’s residential use restriction prohibited short-term rentals. But now the South Dakota Supreme Court has held otherwise. That court concluded that the definition of the term “residential purpose” includes short-term rentals (Wilson v. Maynard). “This is a different interpretation…

Deconversion: Coming Soon to a Condo Near You?

Various parts of the country are seeing an uptick in condo deconversions, with multi-unit buildings that were converted from apartments years ago reverting back to that status. Owners may have dollar signs in their eyes and dreams of avoiding the costs of long deferred maintenance or modern upgrades, but they need to have the full…

Deconversions on the Rise: What You Need to Know

Various parts of the country are seeing an uptick in condo deconversions, with multi-unit buildings that were converted from apartments years ago reverting back to that status. Owners may have dollar signs in their eyes and dreams of avoiding the costs of long deferred maintenance or modern upgrades, but they need to have the full…

‘Residential Use’ Restriction Prohibits STRs

The Michigan Court of Appeals has ruled that regular weekly rentals violated an HOA’s residential use restriction, in a case we first covered in 2020 (Cherry Home Ass’n v. Baker). The decision is a potentially promising development in the ongoing battle against short-term rentals. Owners’ Arguments Shot Down — Twice The case involved a community…

California Court Exempts Current Owners From New Short-Term Rental Restrictions

A California Court of Appeal has left some associations and their lawyers reeling from its broad interpretation of a state law that exempts current owners from new rules blocking short-term rentals. “This is an expansion of what I think a lot of us expected Section 4740 to mean,” says Kelly Richardson, a partner in the…

City Can’t Require Association Units Remain in STR Market

The Colorado Court of Appeals has blocked a local ordinance that required a condo association’s units to stay in the short-term rental pool, limited the owner’s personal use during “high season,” and imposed fines for violations (Town of Vail v. Village Inn Plaza – Phase V Condominium Association). While the case focused a specific local…

Minimum Rental Period Rule Unenforceable Against Existing Owners Under California Law

A California Court of Appeal has left some associations and their lawyers reeling from its broad interpretation of a state law that exempts current owners from new rules blocking short-term rentals (Brown v. Montage at Mission Hills). “This is an expansion of what I think a lot of us expected Section 4740 to mean,” says…

Nuisance Provisions Can Help Curb Behaviors That Go Beyond Mere Annoyance

It’s one thing when a tenant occasionally doesn’t clean up after his dog. It’s another, says Scott Weiss, of counsel for the Nashville, Tenn., law firm Ortale Kelley, “when you have repetitive violations of the governing documents, drug dealing, loud parties, or damage to common elements or other owners’ property.” The natural step when a…