Can am HOA decide to fully restrict short term rentals and then enforce immediately?

I don't rent out my house, but my HOA just voted to Ban STR and I have a hard time believing they can enforce considering a few homes in my hood have been STR for years. It's near Houston (in city limits)

I have found court cases in Florida and California, but not in Texas.

Interesting debate bc my house would rent over 1k per night and this is a home value issue as well as cash flow.

Wouldn't they simply have to have a vote to amend the bylaws, and as soon as that was done its a new rule?

Why are they doing that? One ofbthe board members live next to a STR home?

Within the last 18 months the Texas Supreme Court has ruled on this and HOAs can restrict this. There are some limitations. Cannot remember the case name but can probably find the 2 cases with some effort on line.

It depends on the CC&R's. If they define a minimum rental period and it was ratified correctly by the community in terms defined by the CC&R's (i.e voted on at the yearly meeting with an appropriate quorum), then there's little you can do.

If the board decided to restrict it on its own, or they are using the "residential" use provision to knock out STR's, they are in the wrong legally.

Biggest way around this would have been if you could be grandfathered into the rule given you were already renting to STR in the first place before it was voted. If not, I suspect you'll have a hard time. Cause as others have saidHOAs love to be PITA.

Pirates Cove on the west end of Galveston did this recently ... they basically collected the required signatures to hold a vote and then the homeowners approved it. Made the minimal rental period 90 days.

I didn't think there was any grandfathering but I still see a couple of houses on VRBO. Might be folks just flaunting the rules.

Bayou Vista also has this rule, which kind of annoys me honestly.

EclipseAg said:

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Pirates Cove on the west end of Galveston did this recently ... they basically collected the required signatures to hold a vote and then the homeowners approved it. Made the minimal rental period 90 days.

I didn't think there was any grandfathering but I still see a couple of houses on VRBO. Might be folks just flaunting the rules.

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Seems crazy to me. Has to be part of the value of owning a home in that type of community.

I Have Spoken said:

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EclipseAg said:

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Pirates Cove on the west end of Galveston did this recently ... they basically collected the required signatures to hold a vote and then the homeowners approved it. Made the minimal rental period 90 days.

I didn't think there was any grandfathering but I still see a couple of houses on VRBO. Might be folks just flaunting the rules.

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Seems crazy to me. Has to be part of the value of owning a home in that type of community.

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Wow. We'd have to sell immediately into a limited buyer pool with no renter potential. We are incorporated, so I wonder if I could get business interruption insurance in that case. Can't really see Crystal Beach doing that, but there are always a few permanent residents who are either really wealthy, or who can't grasp that tourists are the only source of income for the community.

I Have Spoken said:

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EclipseAg said:

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Pirates Cove on the west end of Galveston did this recently ... they basically collected the required signatures to hold a vote and then the homeowners approved it. Made the minimal rental period 90 days.

I didn't think there was any grandfathering but I still see a couple of houses on VRBO. Might be folks just flaunting the rules.

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Seems crazy to me. Has to be part of the value of owning a home in that type of community.

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Lots of full-time residents on the bay side and folks who really don't need the income. Plus they've got their expensive toys sitting right there in the dock and don't want goobers messing with them.

Beach side probably not as wealthy overall with a lot more houses on VRBO/AirBnB.

There seemed to be a lot of sensitivities about renters in Pirates Cove ... we tried to rent one house via VRBO and the homeowner wanted to have a phone call to discuss our plans and her rules, because, as she explained, her neighbors were quick to complain. Small neighborhood, big houses close together, and with everyone facing the canals, you have a lot of contact with neighbors. If renters are obnoxious, it's a lot more disruptive on the bay than on the beach side.

I know there was a lot of talk about Pirates Beach doing the same, but it never came to vote because I think the guy organizing it couldn't get the required number of petition signatures. Although they've installed one of those license plate readers to scan everyone who comes in and out of the neighborhood, so they seem to be moving in a direction that is less friendly to renters.

tl/dr: Rich retired folks with lots of time on their hands and legal/business knowledge can be dangerous when they get focused on an issue. I bet we see a lot more of these vacation areas implement short-term rental bans via HOA/community bylaws.

94chem said:

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We'd have to sell immediately into a limited buyer pool with no renter potential. We are incorporated, so I wonder if I could get business interruption insurance in that case.

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Yeah, that kind of talk has to send a chill up the spines of people who rely on rental income. If the HOA bylines are changed, and there's no grandfathering, you're forced to make a move -- fast. Seems unfair.