R. DAVID FRITSCHE
SAAA Legal Counsel
LEGAL UPDATE
DANGERS OF SHORT TERM RENTALS and MORE FAIR HOUSING:
A VIEW TOWARD THE HORIZON
By: R. David Fritsche
SHORT TERM RENTALS:
The Dangers:
Short term rentals (“STRs”) utilizing
platforms such as AirBnB and VRBO pose
serious challenges to owners and
management companies in Texas. First,
because STRs have exploded on the scene,
there is not yet any broad form statutory
framework that governs their operation;
municipalities like San Antonio currently
have minimal regulation for STR operators
within the city limits, but San Antonio is
considering a major overhaul of their STR
ordinance.
In addition, STRs on site
implicate statutory duties for the property
under the Americans with Disabilities Act
(“ADA”). The San Antonio area has a
unique problem as it is a desirable vacation
spot attracting tourists year round leading to
residents utilizing STRs.
The problems with STRs are
numerous; when you or one of your
residents utilize an STR platform, you must
be concerned about:
i.
ii.
iii.
Losing control over the back-
ground of the STR renter and
the attendant problems that
can arise if an unqualified
individual or individuals are
occupying your unit;
Losing control over the
number of persons using the
unit;
Creating noise and practical
nuisances for residents when
the unit is utilized for social
iv.
v.
vi.
vii.
events such as all night
“bachelor parties;”
Whether your financing
documents allow STRs, or,
do STRs create a default
under the deed of trust;
Whether
your
liability
insurance policy provides any
exclusions for perils that arise
from allowing or consenting
to STRs and the problems
that can arise from STRs;
Registration of an STR
usually requires a fee, the
city’s inspection of the STR
and the installation of safety
items such as exit signs and
fire extinguishers;
Who is responsible for
remitting STR hotel occu-
pancy taxes, compliance with
city ordinances governing
STRs and how is the risk and
responsibility for the STR
allocated
under
those
ordinances.
ADA Implications of STRs:
The most concerning aspect of STRs
is the application of the ADA. Once STRs
are introduced into the community, your
entire community becomes an “area of
public accommodation” that is subject to the
provisions of the ADA. For instance,
instead of only your office, the entire
community and all amenities must be
accessible to the entire public, including, but
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