Home-sharing and short-term rentals have substantially increased over the last decade since websites like Airbnb.com have come of age. Short-term rental services work by connecting people looking for a place to stay for a one to three nights with homeowners who are willing to rent out their home or a section of their property. The phenomenon is proven to be successful and does not look to go away at all. It’s also important to note that since it’s a free market with no industry standards, there are no government or organizational regulations placed upon it at this time.
The question you may be asking is how short-term rentals could affect your HOA? You may need to revisit your association/rental policies to handle short-term rentals best. Gassen can help you put the right policies and procedures in place through our property management services. Below are some tips for managing short-term rentals in your HOA or condo association. If you have any further questions, give us a call.
Property Safety and Security
The purpose of a condo is for inhabitants to feel a sense of privacy and security. Condominiums and gated communities are popular for this very reason. Short-term rentals compromise both privacy and security by giving visitors partial or full access to property amenities (pool rooms, laundry rooms, workout facilities, etc.). Short-term renters aren’t responsible for fees or maintenance expenses on the property, so there is a chance they’ll take advantages of these privileges or damage property that homeowners or renters should have exclusive access to.
Who and What is Covered By Insurance?
We can go over your insurance paperwork with you to determine what your insurance policy covers in regards to short-term renters. Would these renters be covered the same as a guest in the condominium? Under what conditions would the renter NOT be included in the policy? Is there even a provision for this with your insurance company should you want to adjust your insurance coverage? Gassen can help you navigate through these questions so that you can prepare yourself for any emergencies that result from a short-term rental.
Since it’s apparent short-term rental services are not going away anytime soon, it’s smart to be proactive by adding protective language to your condominium guidelines. It’s also smart to implement the rule that owners must rent each unit as a whole instead of individual rooms. You may even want to require that all rental leases are in writing, then signed and submitted to trust before the rental happens. You can cover all of this with a Gassen property management professional to make sure everything is done right.
Gassen Can Draft Your HOA Rental Policies
As a condo association, you must make sure that members follow all rules given by the owners or board. A professional property management company like Gassen can help you develop your policies as well as enforce them, if necessary. We work with HOAs and property owners across Minneapolis and St. Paul, Minnesota to organize procedures, accounting, reserve studies, and other responsibilities of property management. To schedule an initial consultation, contact us at 952-922-5575, or you can message us on our contact page.