HOA Short-term Rentals

 

Watts v. Oak Shores Community Association is a new case upholding an association's right to establish rules for short term rentals against a challenge from plaintiff homeowners.  The rules enacted by the Association included a minimum 7-day rental, an annual fee of $325 imposed on owners who rented their homes; a rule limiting the number of automobiles that renters were allowed to bring into the development, a garbage collection fee, and a property transfer fee.  The court upheld all of the Association's rules.  An expert testified at trial, that unlike guests, who are typically present with the owners, short-term renters are never present with the owner; guests tend to be less destructive and less burdensome than renters; short term renters require greater supervision and increase administrative expenses.  The Association had also done a study which supported the administration fee for rentals.

 

The court rejected owner's argument that Davis-Stirling prohibited such charges, because they (allegedly) exceeded the cost to the Association.  Experts testified the fees were in line with the cost to the Association.

 

The trial court awarded $1,180,646.50 to the Association in attorneys fees to defend the case.