California's housing crisis has made short term rental regulations an even more urgent concern for leaders across the state, and some cities have already set their own regulations. These regulations and internal homeowner association rules and CC&Rs provisions sometimes collide. Here is an update based on recent case law and local ordinances.
On the one side of the issue are residents who say the short-term are like mini-hotels that bring problems such as loud parties, trash strewn on yards and sidewalks, and a shortage of parking on their streets. On the other side are those who earn money through vacation rentals of homes and condos. This is because short-term rental sites like Airbnb, VRBO and Homeaway have facilitated a lucrative way for homeowners to earn income by renting out their spare bedrooms or living room space to transient occupants for a short stay. But that industry has also attracted critics who say short-term rentals erode the quality of life in their neighborhoods.
As a result, several California cities have tried to impose a ban on short term rentals. What motivates them? Preservation of a neighborhood's residential character; minimization of inadequate maintenance (from non-resident owners); generation of tax revenue; assuring fair competition with properly licensed hotel and similar facilities; promoting the safety of renters and facilities; controlling traffic and adequacy of parking; noise; dealing with trash; and more.
We hope to see you at this year's CAI NorCal Legal Forum. Both Steve Weil and Andrea O'Toole will be presenting!
Come see Steve along with John Gill, Esq. and Lisa Dial Triplett speak on 'Don't Screw it Up - What Managers Need to Know to Protect Themselves and Their Association Clients Facing Construction Defect Problems' on Thursday, September 20th at 1:45 PM.
Then be sure to check out Andrea with Morgan Hurlbutt and Zer Iyer covering 'Elections Jeopardy - I'll Take Secret Ballots for $500' on Friday, September 21st at 9:30 AM.
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