While lower courts supported the neighborhood association, upon appeal the Texas Supreme Court overturned those judgments, a huge blow to neighborhood associations in their efforts to limit use of short-term leasing. After initial run-ins with the neighborhood association, he sought a court declaration affirming that short-term leases do not violate the deed restriction regarding residential use, as the association claimed. He paid state and local hotel taxes since the rentals were short-term. Rather than sell his San Antonio home, Tarr used the leasing app, VRBO, in addition to forming his own leasing company to manage rentals. Kenneth Tarr purchased his home in San Antonio but was later transferred to Houston. LEXIS 442 (May 25, 2018), the Texas Supreme Court considered whether a homeowner could put her home up for short term leases, through services such as AirBNB and VRBO, even if there was a deed restriction in place in her community restricting use of the property to “residential use.” Is AirBNB’ing your Property Generally Allowed as A “Residential Use?” Windermere Lakes Homeowners Ass'n, Inc., No. And then, all of a sudden, you receive notice from your HOA that a recent vote has placed new rules restricting you from doing this any longer.Ĭan they do that? Well, a recent decision from a Texas Court of Appeals has shed some light on the appetite of Texas Courts to enforce new HOA rules of this type. You begin renting out your home while you’re away. You carefully review the existing CCR’s on your property, and make sure you can move forward. So, you become interested in renting out your home with services such as AirBNB and VRBO as a short-term lease option.
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