- December 2, 2020
- Posted by: CCM
- Category: Uncategorized
As AirBNB and VRBO have changed the landscape of travel accommodations, short-term vacation rentals have become increasingly popular. Ideal for families, vacation rentals provide more space at a lower cost than many hotels.
Homeowners living in well-known travel destinations have realized that they can use their homes as vacation rentals to provide solid revenue streams.
In many Homeowner Association (HOA) communities, homeowners are divided on the issue of whether to accept or prohibit short-term vacation rentals.
Concerns about short-term renters include increased noise, traffic, and careless renter behavior that may go as far as harming the community.
On the other hand, some homeowners are eager to rent out their properties to bring in extra income when they are not using the properties. In fact, some HOAs that had strictly prohibited rentals reversed course. They reconsidered their policies as property vacancies increased and potential homeowners looked elsewhere for communities with more relaxed rental policies.
HOAs need to find the balance between the interests of the owners who oppose vacation rentals in their communities and those who value higher occupancy rates and another revenue stream.
If the decision to permit, prohibit, or limit short-term vacation rentals is on the table in your HOA or community, it is time to talk with community management experts like CCM.
In the meantime, here are a few key considerations:
- Assess local and state laws to ensure your organization complies with all laws and regulations. In addition to specific protocols, permits and taxes may also apply.
- Review all HOA or association governing documents to determine if there are any restrictions preventing rentals. If the wording is vague, it is time to proactively amend the documents based on the decision of the community.
- Assess opinions of current homeowners.
- Evaluate any potential risks or consequences including increased insurance costs, elevator traffic increases, and increased use of amenities.
If the Board of the community officially decides to permit short-term rentals, the Board will need to issue specific policies detailing how long property owners may rent out their units, the types of accepted agreements, which, if any, amenities may be used by vacation renters, maximum occupancy limits, and potential fines or fees, etc.
If the Board of the community officially declines to allow short-term rentals, the Board will need to proactively issue clear communications detailing the policy. In addition, the Board will need to determine and enforce consequences if the policy is violated.
Do you need additional help handling this decision and implementation? A professional management company such as CCM can manage this process as well as provide an array of benefits to your Board and homeowners.
Our team at Consolidated Community Management provides expert property management services at competitive prices. Contact us today by calling (954) 718-9903 for Broward, (561) 465-7639 for Boynton Beach, or clicking on ccmfla.com.
Consolidated Community Management (CCM) is a full-service property management company specializing in condominium and homeowner association management in Broward and southern Palm Beach Counties. We are committed to working together with community Boards of Directors to develop management plans tailored to the unique requirements of each community and their residents.
CCM provides a quality of service that is unique to our industry and consistently delivers a distinct competitive advantage. Our concentrated, extensive local presence and knowledge of community associations results in lasting partnerships and superior service. We have built our industry reputation on employing the best in the business and assigning only a limited number of properties to each Property Manager Team.
To learn more about CCM and our services, contact us at (954) 718-9903 for Broward, (561) 465-7639 for Boynton Beach, or visit us at ccmfla.com.