Less than a decade ago, CAI began tracking rental legislation impacting community associations. At that time, only a handful of states were legislatively addressing the issue. Fast forward to 2019, CAI is tracking 79 rental related bills in 29 different states impacting community associations. New trends in short-term rentals are surfacing as community associations navigate how to handle them.
Online platforms that facilitate short-term rentals have exploded in popularity. Websites like Airbnb and VRBO connect homeowners or “hosts” with guests to arrange the listing and booking of homes for long weekends, summer breaks, and more.
Forbes reported on a new short-term rental over the summer. Miami-based condominium developer Newgard Development Group partnered with Powered by Airbnb to open high-rise condominium towers in Miami and Austin. Powered by Airbnb is the home-sharing platform’s consulting business for new buildings. Owners are encouraged to rent out their units and a subsidiary of the developer will receive a 25% cut of the rental income. The buildings will have hotel licenses allowing the owners to rent out their units as often as they like via Airbnb.
These high-rise buildings will operate like luxury condominiums andinclude amenities like co-working spaces, hotel-style food, and beverage programs. The developer’s partnership with Airbnb allows for the home-sharing service to be involved in design decisions and dedicate certain areas of the property to these renters or “guests.”
Some community associations’ governing documents have leasing restrictions prohibiting rentals for transient purposes —usually defined as less than 30 days. The nature of short-term rentals is not always intuitively harmonious with the community association housing model, which focuses on bringing people together, strengthening neighborhood bonds, and promoting a sense of community and belonging.
However, associations are incredibly diverse, and CAI recognizes there are some communities where short-term rentals are appropriate and desirable by residents. Short-term rentals can provide considerable income for some owners, particularly those in vacation destinations and resort areas. Regulations need to be consistent with the community association housing model of self-governance, where residents determine what is best for their community. Community associations should be allowed to tailor policies that meet the character, culture, and desire of their homeowners.
To learn more about CAI’s short-term rental policy, check out our public policy resources. Share this useful information with residents in your community who choose to make their home available on Airbnb and VRBO.
For the latest information on long-term rentals, click here.
