In an economy where digitization rules, it’s become easier than ever for homeowners to make additional money and rent out of their units for short periods of time. The explosion in popularity from sites like Home Away and Airbnb have made this trend a booming one. However, in an HOA, this becomes tricky to manage. Handling these types of services can be complex, which is why we’ve dedicated an article to navigate the process. In addition to securing your operation with an LA HOA Insurance policy, heed the following advice.
Who is responsible?
First and foremost, it’s imperative that homeowners understand that any violation by their short-term guests- small or large – is their responsibility. While these risks are relatively minor, it still opens up the homeowner, and their neighbors, for dealing with uncomfortable situations. From parking violations to noise complaints and even illegal activity, homeowners should understand that they are liable for the tenant’s actions.
Ask for opinions.
A short survey on how homeowners feel about having short-term rentals in the association can give you a good gauge on where they stand. Your association still has power, but consider your resident’s opinions.
According to HOA Management, if your local law allows short-term rentals in your HOA, the association might be able to add text to your CC&Rs for rules on these types of rentals. You might also be able to add language that completely prohibits them. Speak with your attorney to be sure any of these amendments are in line with your federal, state, and local laws.
Speak with your management company.
If your HOA has a management company, ask them for advice on how to handle short-term rentals, and how to train your board members to manage any complaints that might arise as a result of them.
About Scott Litman Insurance Agency
At Scott Litman Insurance Agency, we are dedicated to protecting HOAs like yours. We have a unique understanding of the industry and the common risk exposures that you face in your daily operations. In fact, we find that 90% of the policies we review are missing coverages that violate the Covenants, Conditions, and Restrictions (CC&R), exposing the board, HOA and management to lawsuits – which is why our comprehensive policies are tailored to meet your specific needs at competitive prices. For more information about our products, contact our experts today at (818) 879-5980 ext. 201, or fill out our online form.