declarations contain provisions that do not allow short term leasing, use for hotel/motel purposes, transient leasing/rental, or require leases to be for a minimum twelve-month term, or similar. Such provisions may be sufficient to prohibit owners from renting their units through Airbnb, and similar service providers. However, each association should always consult with its attorney to confirm that the actual language of the declaration or bylaws achieves the intended objective and authorizes the board to do what it wants to do.
In the event that your declaration or bylaws do not already prohibit short term leasing, then your association will have to amend its documents in light of the Stobe case mentioned above. Also, keep in mind that if your association presently prohibits short term leasing by rule, that rule is likely invalid and unenforceable under the Stobe case. Each association should consult with its attorney to determine how the Stobe case impacts them and what language should be included in the declaration or bylaws to effectively prohibit short term rentals.
Although I mentioned some benefits from short term leasing, I spent a majority of time discussing the negative aspects of short term rentals and comparing them to party crashers. It is important to note that it is up to each individual association to determine whether short term rentals gel with the kind of community they wish to create. But if short term rentals do feel like party crashers, then community associations would best be served to ensure that their declaration and bylaws contain appropriate provisions to prohibit short term rentals, whether by existing language or by a valid amendment.
20 | COMMON INTEREST®
A Publication of CAI-Illinois Chapter
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