In recent years, short-term rentals, facilitated by platforms like Airbnb and Vrbo, have surged in popularity. While these rentals offer homeowners an opportunity to generate additional income, they have also introduced a range of challenges for homeowners associations As a result, it is important to understand the association's options in enforcing its rental restrictions.
Short-term rentals typically refer to property rentals for a period of less than 30 days. These rentals are often appealing to tourists and business travelers looking for more personalized or affordable accommodation options compared to hotels. Despite these benefits, short-term rentals present several challenges for HOAs:
- Increased Wear and Tear: Frequent turnover of guests can lead to increased wear and tear on common areas and shared facilities, leading to higher maintenance costs.
- Noise and Disturbances: Short-term renters may not adhere to the community's noise and behavior standards, leading to complaints from permanent residents.
- Security Concerns: A constant influx of strangers can raise security concerns among residents who are not familiar with the short-term renters.
- Parking Issues: Short-term renters often bring multiple vehicles, which can strain limited parking resources and inconvenience permanent residents.
- Insurance and Liability: Short-term rentals can complicate insurance policies and increase liability risks for community association, especially if renters cause damage or engage in illegal activities.
A.R.S. § 9-500.39 restricts the ability of cities and towns to prohibit or regulate short-term rentals. However, Arizona law does not preclude a homeowners association from enforcing the recorded rental restrictions that govern the property. Moreover, cities are towns remain authorized to regulate and limit occupancy to prevent a public nuisance, require contact information for the owner or manager to be available to respond to complaints or emergencies, and enforce existing laws on noise, parking, and waste disposal. Moreover, property owners are statutorily required to register their rentals with the city or town where the property is located (A.R.S. § 33-1902) and additional taxes are imposed on this use (A.R.S. § 42-5001 et seq.).
If your community association regulates the use of a property for short-term rental purposes, our Short-Term Rental Program may assist you in reviewing, monitoring, and enforcing non-compliant rentals within the community.
Monitor– CHDB Law routinely checks popular short-term rental sites to locate non-compliant listings at no charge.
Enforce– If a non-compliant listing is identified, CHDB will send the Owner of the property a demand for a flat fee of $325.00, setting forth the actions required to bring the property into compliance and explaining the consequences of non-compliance.
Litigation– If litigation becomes necessary to address the non-compliance, the Board of Directors will be given the opportunity to evaluate whether to proceed with seeking injunctive relief against the Owner.
Short-term rentals present both opportunities and challenges for homeowners associations. However, by adopting thoughtful and balanced strategies, CHDB Law believes we can manage the impact of short-term rentals and maintain a peaceful and cohesive living environment for all residents.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
