The Texas Supreme Court’s Opinion on Short-Term Rentals

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The Texas Supreme Court’s Opinion on Short-Term Rentals

Short-Term Rentals

In the last few years, short-term rentals have gained popularity following the creation of companies like VRBO and AirBnB.  These online leasing sites effectively replace the “for rent” signs in front yards because homeowners are now relying on leasing Apps that allow them to quickly rent their home with the click of a button.  Because renting one’s home is so easy, many homeowners are opting to rent their homes out as a way to bring in additional household income.

But many communities in Texas are deed restricted and governed by property owners’ associations tasked with enforcing those restrictions.  Typically, the property owners’ association becomes aware of an owner’s short-term rentals because the neighbors notice the activity and complain to the board of directors.  And, some property owners’ associations conclude that the short-term rentals are a violation of their community’s applicable restrictive covenants.  This was the case in Timberwood Park—a residential community in the San Antonio area.  And, a lawsuit filed by the homeowner followed.

Read the facts in the lawsuit and a summary of the opinion rendered by the Texas Supreme Court, which has far reaching implications for HOAs in Texas.  This article appears in the RMWBH Community Association Newsletter, July, 2018, and is used with permission.  

 by Mia Lorick and Frank Carroll

Mia is an associate with the RMWBH firm’s Litigation and Appellate sections.  Her practice focuses on general civil and complex commercial litigation as well as professional liability and labor and employment.

Frank is an associate with RMWBH who practices in the firms’ litigation and appellate groups and has represented individuals and corporations in a variety of legal disputes ranging from catastrophic injury to complex commercial litigation.

 

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CMA Management
36 Years of Community. Well Served. (www.cmamanagement.com) Headquartered in Plano, Texas, CMA has three regional offices and numerous onsite locations providing contract management services for more than 250 residential and commercial communities ranging from 100 to more than 9,000 homes. Residential Communities •Town Home Communities •Master Planned Communities •Active Adult Communities •Commercial Associations