Article Courtesy of The Miami Herald
By Alex Martin and Paul Sanchez
Published September 26, 2019
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The proliferation of
vacation rental operators in Miami-Dade
County’s popular tourist destinations has
been making headlines lately. The ongoing
battle against illegal short-term rentals
that are in clear violation of condominium
association regulations is playing out in
high-rise communities along Miami Beach and
throughout the downtown corridor.
The result is a
tremendous problem that impacts both
visitors and, even more profoundly,
condominium owners. As the situation grows,
associations are forced to find ways to
police the problem, often with inadequate
expertise and resources at their disposal.
It is understandable how Airbnb, VRBO,
HomeAway and other vacation rental sites
have grown in popularity among visitors to
Miami. Whether they’re coming for major
events like Ultra Music Festival and Art
Basel, or, simply seeking to escape the
winter chill for some South Florida
sunshine, the ease and affordable rates of
vacation sharing makes it an attractive
option. Unfortunately, these travelers are
often blissfully unaware that many
associations governing Miami’s condominium
towers specifically prohibit short-term
rentals in their charters. Just imagine
arriving at your long-awaited beach escape
only to be turned away at the gate by
security. Now what?
The problem is even more alarming for
condominium owners. When residents or
tenants participate in any of these vacation
sharing services, it puts the entire
building at risk. There are critical
concerns that come with “strangers” suddenly
showing up at the community you call home
with the intention of using it as their
vacation hot spot. It might be public
intoxication by the pool, music blaring late
into the night, misuse of building
amenities, unsafe behavior, unauthorized
parties – and more. |
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Airbnb filed a lawsuit against the city of Miami
Beach on Jan. 4, 2019, alleging that new restrictions on short-term
rental platforms violate the federal Communications Decency Act.
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Beyond these lifestyle
and safety concerns, owners face serious
financial repercussions should their
building become known for allowing
short-term rentals. It might become more
difficult to refinance a unit or obtain
lines of credit. Resale values – and the
ability to sell units in general – take a
major hit. After all, Realtors are inclined
to steer prospective buyers away from
buildings that have the reputation of a frat
house. Make no mistake, short-term rentals
can tarnish a community’s reputation and
negatively impact property values.
To avoid such instances, condo associations
are retaining legal counsel to review or
amend their bylaws to ensure the illegality
of short-term rentals is explicitly detailed
and expressly addressed. They are also
counting on reliable association management
companies to step in and police violations.
Their property managers and building staff,
along with association members, become de
facto detectives that root out violators and
initiate the proper resolutions. Policing
measures might include:
Aggressive monitoring.
Management teams monitor short-term rental
websites, looking for advertisements with
images that show unique tiling, balcony
railings or views specific to their
building.
Staff training.
Run through scenarios with staffers so they
can identify key signs of violations. These
might include the aforementioned visitors
with suitcases, or groups walking around
aimlessly because they are unfamiliar with
the building. It is also important to ensure
anyone who enters the lobby is asked who
they intend to visit.
Legal action. A strongly worded cease
and desist letter can have a chilling
effect. For operators who turn to these
rental platforms to grind out a profit or
cover expenses, the threat of legal action,
requiring costly counsel, could be enough to
get them to stop or take their short-term
renting elsewhere.
Reputation repair. Publicize
successful efforts to eliminate short-term
renting to the point that your building
becomes known for being particularly
unfriendly to Airbnb and its peers.
One condo community we oversee in Greater
Downtown Miami had a major problem with
short-term rental violations. Numerous units
were violating association rules. However,
through a combination of monitoring and
training, nearly all violations were
eliminated in just a few months.
As long as Miami Beach, Brickell and
downtown Miami remain internationally known
destinations, the sharing economy will be
prevalent. But there is some good news.
Developers, recognizing the demand for
short-term rentals, are specifically
tailoring new projects for such uses in
neighborhoods where they are allowed. This,
combined with the continued efforts of
municipalities and associations to get rid
of illegal short-term rentals, bodes well
for a future where no visitors find
themselves stranded with their suitcases and
a ruined vacation. |