SAAA November/December 2018 RESIDENCE Magazine NOV_DEC_2018_Magazine | Page 31

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 Page 1 www.saaaonline.org | November/December 2018 31