Short-term rental

What is a Short-Term Rental?

In the homeowner association context, a short-term rental (STR) refers to the practice of renting out a furnished home, apartment, or condominium for a short period, typically less than six months. This is in contrast to traditional leasing agreements which usually last for at least one year.

STRs are commonly used for vacation rentals, temporary housing, or rental of investment properties. With the rise of platforms such as Airbnb, VRBO, and HomeAway, STRs have become an increasingly popular method for homeowners to generate additional income.

Regulation of Short-Term Rentals

However, the growing popularity of STRs has led to various issues, prompting homeowner associations (HOAs) to regulate or even prohibit them. Concerns often include increased noise, trash, parking problems, security issues, and the change of neighborhood character due to transient occupancy.

HOAs may set rules regarding the frequency and duration of STRs, require registration or permits, impose fines for violations, or completely ban STRs within the community. It is critical for homeowners to understand their HOA’s rules and regulations regarding STRs before engaging in this type of rental activity.

Benefits and Drawbacks of Short-Term Rentals

On the positive side, STRs can provide homeowners with supplemental income and allow them to make use of their property when they are away. For renters, STRs offer flexibility and a home-like setting compared to hotels.

On the negative side, STRs can cause disturbances and create wear and tear on common amenities. They may also potentially decrease property values if not managed properly.