establishment. The most delectable hors d’oeuvres are spread out across two round tables and appear to have been arranged by an artist; you’re afraid to disturb it. The lights are dim and the music thumping, but not too loudly. This is going to be the most perfect celebration. And then, like a needle abruptly scratched across a record, your reverie comes to a screeching halt. Two young guys who no one knows are pillaging the food and boisterously proclaiming that the party has started. What the #@%&!
All
Community associations, whether a condo, townhome, or single family home, are peoples’ homes. We invest time and money to make our homes a place of quietude and respite. Usually, by the time we have purchased our own home, we have no desire to live in a college-town apartment complex anymore. Rather, we have moved into the community association because the serene neighborly atmosphere is our party-style now, and a constant barrage of unknown people going in and out of our home can feel like a bunch of party crashers.
your friends and family are there. It’s a spacious yet intimate private room at a well-respected
SHORT TERM RENTALS DO NOT ONLY IMPACT CONDOS AND OTHER COMMUNITY ASSOCIATIONS LOCATED IN OR CLOSE TO THE CITY. SIMILAR ISSUES AND
The increasing popularity of shared or sharing economy, in which people can rent beds, cars, rooms, and anything else they may own, has presented new challenges to community associations; particularly with respect to short term rentals (also known as transient leasing, shared housing, etc.). One of the most prominent examples of this new sharing economy impacting community associations is Airbnb, but there are others such as VRBO, HomeAway, etc. I assume that by now, most if not all of you readers know what Airbnb is, so I will not take the time to explain it.
Are short term rentals necessarily or intrinsically bad? The Chicago Tribune has recently reported on how Airbnb has benefited various neighborhoods throughout the City by bringing people into those neighborhoods who would likely not have gone there. This means people (tourists) who will spend money at local neighborhood businesses. It also promotes the rich diversity of the City. So certainly there are benefits derived from short term rentals to the surrounding area, and not just to the owner renting the shared housing.
Of course, there are also Airbnb horror stories reported in the news. A quick Google search will reveal stories about renters causing property damage to the rented unit, stealing personal property from the host, using drugs, throwing parties and orgies, and even a stabbing. Although such horror stories seem to be the exception, and not the rule, such incidents have occurred.
Thus, just because there can be benefits to the greater community generally, not everyone in that community may like short term rentals; particularly in a private community
CONCERNS ARE FACED BY SUBURBAN COMMUNITY ASSOCIATIONS TOO.
such as a community association. Even Chicago recognizes that community associations may not want to take part in the shared housing economy. This past summer the Chicago City Council passed a new short term rental ordinance that, in part, creates a list of buildings that prohibit short term rentals. If a building is on that list, then it is unlawful for any owner or occupant of a unit in that building to list his or her unit on Airbnb (or similar service provider). However, to qualify to be on that list, a community association’s governing documents must prohibit short term rental. Note that in light of the Illinois Appellate court ruling in Stobe v. 842-848 West Bradley Place Condominium Association, it is very likely that the community association will have to amend its declaration or bylaws to prohibit short term rentals if their declaration or bylaws do not already contain such prohibition.
So, how do short term rentals impact a community association? Individual owners and long-term occupants may raise quality of life concerns. The association may be concerned about increased administrative, maintenance, and repair expenses. For example, while staying in a high-rise condominium, short term or transient renters may conduct themselves as if they are staying at a hotel, instead of someone’s home. Perhaps they are shouting and running up and down halls after a night on the town. Perhaps they discard food containers on
the floor of the lobby. Perhaps they knock over a decorative potted plant outside the main entrance, cracking the pot and spilling dirt everywhere. Such behavior will disrupt and disturb the permanent residents’ peaceful enjoyment of their homes. It will require extraordinary clean-up by maintenance. There will be expense incurred in replacing damaged common elements and association property. It may also require additional time on the part of the board and management to take enforcement action against the unit owner, which may also cause the association to incur legal fees.
Short term rentals do not only impact condos and other community associations (e.g. cooperatives) located in or close to the City. Similar issues and concerns are faced by suburban community associations too. A single family home in a community association can be used as a party house just as an urban condo unit.
Alright, the potential for a decline in quality of life, increased burden on association resources, and the horror stories splashed across the internet makes it imperative that your community association prohibit short term rentals. After all, we do not want those transient miscreants crashing our party. How is such prohibition accomplished?
The short term rental prohibition must be set forth in the community association’s governing documents. Many
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