Florida Community Associations Versus Airbnb and VRBO in Florida

The internet has created a new way for people to rent out their homes, but it’s causing conflicts with the rules that communities have in place to control how properties are used. In Florida, there are laws that support these community rules, which can limit how often and for how long someone can rent out their home. Many communities are trying to make these rules even stricter, either through their governing boards or by changing their official documents. This is causing tension between residents and property owners who don’t live in the community. There are rules in place in some communities that restrict how units can be rented out. This is to protect the community and its residents. However, companies like Airbnb and VRBO are causing problems because they allow people to rent out their units for short periods of time. Some people are trying to use laws and rules to stop these companies from operating, but there are also laws that say local governments can’t ban or limit vacation rentals. However, there was a court case that might change things for these companies in the future. Airbnb and VRBO both help people rent out their properties for short periods of time. Airbnb collects a fee for matching property owners and renters, while VRBO charges a flat fee for property owners to advertise on its site. Both companies make money by acting as middlemen between property owners and renters. The Bennett v. Walton County case involved a family renting out their property for weddings and events in a residential area where it wasn’t allowed. The court ruled that the frequency and intensity of the events made it a violation of zoning laws. This could impact companies like Airbnb and VRBO, which rely on property owners renting out their homes frequently. The ruling suggests that renting out properties for events may not be allowed in certain residential areas. The court looked at a case involving renting out a property for events, which is different from how Airbnb and VRBO operate. Another court in Florida also ruled against a county trying to ban short-term rentals in residential areas. There’s a chance that courts could start using a frequency-based test to determine if a property is being used for residential purposes. This could cause issues for Airbnb, VRBO, and other similar businesses, as well as rental property owners who don’t use these platforms. There’s also a possibility that courts will follow the decision of the Florida court and not let counties use zoning laws to go against state laws. Airbnb and VRBO need to follow rules from community associations about renting homes. If properties are rented too often or for nonresidential use, it may violate the rules. Courts have looked at similar cases before, and their decisions may affect how Airbnb and VRBO rentals are regulated in the future. In two court cases in Kentucky and Colorado, property owners were sued by their community associations for renting their homes on VRBO. In both cases, the courts ruled in favor of the property owners, saying that the rental activity did not violate the rules of the community associations. The courts said that the rules were not clear enough to prohibit short-term rentals, and that as long as the renters were using the properties for living purposes, it was allowed. This is similar to how Florida courts have also interpreted property rules. So, if Florida community associations want to ban short-term rentals, they need to be very clear about it in their rules. Florida courts have not directly addressed how Airbnb and VRBO rentals should be regulated. Some courts have suggested using a frequency-based test to determine if a property is being used commercially or residentially, but others disagree. The Florida Legislature has made laws to protect property owners from these kinds of restrictions. Local governments are also trying to regulate Airbnb and similar businesses by imposing taxes and restrictions on short-term rentals. Basically, a law in Florida says that local governments can’t make rules to stop people from renting out their homes for vacations, unless those rules were made before June 1, 2011. The law used to be stricter, but it was changed in 2014. Now, local governments can’t totally ban short-term rentals, or make rules about how often or how long people can rent out their homes. For example, they can’t say that people can only rent their homes 10 times a year, or that rentals have to be for at least seven days. Local governments in Florida have been finding ways to regulate short-term rentals despite state laws. Some cities have banned short-term rentals in certain areas or required property owners to register and pass inspections. Property owners have challenged these rules in court, but so far the ordinances have been upheld. Additionally, companies like Airbnb have to pay taxes on their rentals, just like traditional hotels. In the future, there may be big changes to the laws about vacation rentals in Florida. The courts will have to decide what counts as a residential use of property. Some people want to make it harder for companies like Airbnb and VRBO to operate in Florida. But there are laws that say local governments and community associations can’t regulate vacation rentals too much. It’s likely better for the legislature to decide on big changes to these laws, rather than the courts. In a court case, Judge Makar disagreed with the majority opinion but agreed with some parts. The case was about short-term rentals in Escambia County, Florida. The court ruled against the county, allowing short-term rentals. The Florida Attorney General also issued an opinion supporting short-term rentals. In another case, the court allowed a facility for elderly residents in a residential area, even though the restrictive covenant prohibited commercial use of the property. The court case discussed restrictive covenants related to renting property for short-term stays. The court ruled that these covenants should be narrowly interpreted in favor of property owners. Some cities have passed laws limiting short-term rentals, and Florida has a statute on this issue. Several cities in Florida have different rules for renting out homes on Airbnb. For example, Miami Beach only allows rentals of six months or more in single-family homes, but Fort Lauderdale has its own set of rules. In Flagler County, there was a legal challenge to the rules, but the county’s ordinance was ultimately upheld. Additionally, Airbnb now collects tourist taxes in Florida. This article discusses the ongoing struggle in Florida to regulate vacation rentals in the sharing economy. It was written by a lawyer and a law student, and is endorsed by a section of the Florida Bar.

 

Source: https://www.floridabar.org/the-florida-bar-journal/florida-community-associations-versus-airbnb-and-vrbo-in-florida/


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