VACATION RENTALS AND PROPERTY VALUES
QUESTION: Our board discussed eliminating vacation rentals. The board is aware neighboring properties show a decline in property values as high as 30% for developments adopting this exclusion. I feel our board has an obligation to share this information with property owners prior to residents voting. My fellow board members do not share my views. Your thoughts?
ANSWER: I have to side with your fellow directors. Short-term rentals bring large numbers of tourists into places that were not designed to accommodate them. Your board’s obligation is to preserve the development for its intended purpose–a residential development, not turn it into a cash cow for investors.
Problems. Allowing vacation rentals to flourish in your development will turn it into a condo hotel with a steady stream of people flowing into and out of the development. This creates security issues, trash, rules enforcement problems, nuisance noise from parties, parking problems, higher maintenance costs and increased administrative expenses.
Existing Owners. Members who bought into the development to have a home to live in, raise kids, and retire in will not be in favor of crowds of suitcase toting vacationers invading their association. If, however, your association consists almost entirely of offsite owners, short-term vacation rentals may be appropriate.
RECOMMENDATION: Your board will need to determine the nature and purpose of your existing development and make decisions accordingly. For more information, see Short-Term Rentals.
For more knowledgeable information regarding the business of HOA’s, visit: The Davis-Stirling.com Newsletter