Short Term Rentals: Both Sides

Short Term Rentals: Both Sides

Hello Mr. Richardson, We have a guest house on our half acre lot that we have rented out (using a short-term rental service). We are always home in the main house when guests are present, therefore, there has never been any issue with noise or nuisances over the many times we have rented it out. It has been a nice source of income that has allowed us to pay our utilities, some college tuition for our children and HOA dues. The HOA sent a letter to us stating that we were running a commercial business from our home which is forbidden. Is there anything that protects the ability of a homeowner to rent out a room or, in our case, a spare guest house short of changing our listing to a monthly only rental? Thanks for any help on this! K.A., San Diego Dear Mr. Richardson, Is it legal for one of the other owners in my association to use a unit as a short-term rental without input from the other owners? Privately it was discussed among those of us who vehemently oppose this callous disregard for our concerns. Is this owner acting within legal parameters?  Your input will be greatly appreciated. Thank you. I anxiously await your reply. L.H., South Pasadena Dear K.A. and L.H., While you are on opposite sides of this issue, the basic response is the same. Short-term rentals are considered by many as a commercial and therefore non-residential use of the property. While many web-based companies offer convenient advertising of such rentals, it is closer to a hotel-type operation than a tenancy. An increasing...
A Proactive Approach to Controlling Short-Term Rentals in Your Community

A Proactive Approach to Controlling Short-Term Rentals in Your Community

Whether through the Courts, the Legislature or human nature, from drought restrictions to email prohibitions, community associations are often forced to adapt quickly to change in order to govern effectively. In the case of the short-term rental craze, this change seems harder to tackle. Indeed, the short-term rental market is having an increasing impact on community associations. Residents often complain that short-term renters – who are transient by definition – do not treat association common areas with the same regard as resident owners. Most are unaware of association rules and contribute to mounting security, trash removal, parking, and noise related concerns, not to mention the increased common area expenses that come with the increased burden of handling short-term renters. On an emotional level, residents are often uncomfortable with the fact that their neighborhoods are filled with unfamiliar faces, many of whom are on-site for only a few days at a time. The idea of transient rentals in our communities seems at odds with the objective of maintaining the residential character of our neighborhoods. We all have seen provisions in our communities’ documents that prohibit “non-residential” use of a unit, or that restrict use of property for “private single-family residential purposes.” While many associations have adjusted to an increase in tenant occupied residences in their communities, this “business” use of a residence, where unfamiliar groups of people share the common area and facilities for brief periods of time, never to be seen again, is incompatible with everything we’ve come to know and understand about community associations. The short-term use of a residence only adds to the resentment towards tenants who...
Boards Elections [Part 1]

Boards Elections [Part 1]

Mr. Richardson, What recourse does a member have if the board refuses to abide by the governing documents or state law? Our president refuses to hold the annual election in an apparent attempt to stay in power. C.S., Poway Dear C.S., 5% of the members may under Corporations Code 7511(c) send a written petition demanding a membership meeting. However, most likely the board will ignore it. I have seen members announce their own membership meeting, but this is a bad idea because it is too easy to make an error in the very technical election procedures required by Civil Code 5100-5135. A better option may be to file a court petition under Corporations Code 7510(c) for an order compelling an election. This involves legal expense, and is a last resort, but judges are normally sympathetic to these petitions and are willing to order an election. Before going to all the effort and expense of filing a court petition, make sure you have member support (and a few candidates). Best regards,Kelly Dear Kelly, Our association did not make quorum, so our election was postponed a month. Each homeowner gets 1 vote, but there were couples at this meeting so some homeowners got 2 votes. Some homeowners returned a handful of ballots they had collected. I was told each homeowner must mail or bring their ballot in themselves. Is this legal? D.P., Aliso Viejo Dear D.P., Civil Code 5115(a)(2) says that ballots may be mailed or delivered by hand to a location specified by the inspector of elections but does not specify who does that. Election rules could avoid a dispute...
Boards Barking About Dogs

Boards Barking About Dogs

Dear Mr. Richardson, Our CC&R’s limit the number of pets a homeowner can have to a “reasonable” number. City law states a resident outside of an HOA can have up to 4 dogs. Our association manager insists we have to abide by city law. Is that right? Thanks, F.D., San Pedro Dear F.D., Per Civil Code Section 4205, governing documents cannot conflict with state law. Unless your city in its ordinance exempts HOA residents, your association must, like any homeowner in that city, follow the law. The association could adopt a stricter standard, but it cannot be less strict than the city, as the public law sets the floor below which associations may not go. Also, it is the city’s job to enforce ordinances, so the board might not have to become involved (except for a call to the animal control department). Most homeowners do not research city ordinances, so if a pet limitation is important to your community, it is better to state it clearly in the governing documents. Pet limits are probably best placed in CC&Rs, so they are more permanent and cannot be changed from one board to the next. Thanks,Kelly Dear Kelly, Several residents used to take our dogs to an enclosed common area to play. The area was not designated for any specific purpose. One day the HOA president announced that dogs would no longer be allowed in that area. The board then invited residents with grandchildren to take advantage of that common area for play. Wouldn’t each resident who takes their dog to the area be covered through each individual homeowners insurance? D.S., Cherry...