Your home is your sanctuary. It’s likely also your biggest financial asset. Short-term rentals are a threat to both. Investors are increasingly buying homes in desirable locations with the sole intent of using them for rentals. RISE Association Management Group is launching a new high-tech and high-touch approach to keep uninvited guests out. We call our program Home Dome. Our clients call it peace of mind.
Protect your HOA and condo board from short-term rentals
According to research by The Economist, investor purchases of homes and condos may be underreported by as much as 20%. Meaning, there is a strong possibility your new neighbor may be an investor in disguise. Condominium and homeowner associations recognize many of the threats short-term rentals pose. And HOA and condominium management companies have been closely monitoring the proliferation of home-sharing platforms. However, the rental listing platforms have made it increasingly difficult to identify illicit listings on their platforms, making enforcement of HOA rules difficult or impossible. RISE is the first management company to tackle the issue head on with our proprietary Home Dome program.
HOA rental restrictions and the law
We help clients spot short-term rentals and capture the data necessary to levy fines and make rules enforcement possible. Before that, RISE works with HOA and condo associations to cover the basics: making your HOA rules crystal clear about rentals. The Supreme Court of Texas ruled homeowner and condo associations must have explicit provisions in governing documents that prohibit short-term rentals to uphold such restrictions. If rentals are allowed, all applicable conditions must be clearly spelled out. A property management company like RISE helps review and draft language for leasing restrictions. We also recommend consulting with a real estate attorney for the final word on governance documents.
Impacts of vacation and short-term rentals on communities
Allowing rentals of any kind is a common concern, and HOAs continue to look for new ways to balance the increased saturation of rental units within a community. However, as state and federal laws evolve to restrict an HOA’s ability to regulate rentals, homeowner associations need new and novel solutions. While some may protest the HOA or Condo Board’s ability to restrict leasing, it is critical to understand the real-world impacts of a highly transient population in a traditionally owner-occupied community. These include:
- Safety/security – unknown guests, with a lack of oversight, may be engaged in illegal or unsafe activities, putting the whole community at risk.
- Parking/traffic – more guests mean more traffic and unfamiliarity with parking limits and restrictions.
- Noise – transient visitors may be less respectful of community rules, leading to increased noise and disruption.
- Resource strain – renters can put more demand on resources like water, electricity, and waste management, impacting the overall functionality of the community.
- Value depreciation – a proliferation of short-term rentals and rental hosts who are not as accountable as homeowners to property maintenance and cleanliness lowers the appearance of the whole community.
- Increased cost of insurance – higher rates of non-owner occupied homes can substantially increase the cost or availability of HOA insurance. Many carriers limit exposures to those with less than 15% non-owner occupancy.
- Sense of community – with people always coming and going, it’s impossible to develop relationships and connections.
- Liability – if renters damage either homeowner property or community property, the homeowner and HOA are left to pay for repairs.
RISE HomeDome short-term rental defense
Enter the RISE Association Management Home Dome program. This innovative new service is a first among homeowner management companies and directly addresses rental concerns. The program is part of our HOA management process and does not result in any additional HOA fees. Home Dome harnesses the power of artificial intelligence and geofencing technology to create a virtual dome around your community. With this powerful technology, RISE is able to monitor rental activity 24/7 and enforce community regulations in real-time. In addition, it captures all rental listing information, including documented stays, to build a digital file of all activity. This helps the HOA/condo board build an enforceable case against violators, even when there is no on-site management or personnel on the property.
Most people have heard of AirBnB and VRBO. But there are more than 70 other sites used for advertising and booking short-term rentals. This is where RISE employs AI to continuously monitor rental sites. We also routinely adjust our search terms to stay ahead of the site bots regularly optimizing each site.
The geofencing functionality of Home Dome uses GPS to create a digital fence around a specific area. RISE monitors all activity occurring within the fenced area to determine if anything violates the HOA or condo board rules. The RISE on-site property manager is the eyes and ears to inspect and verify any activity not in line with the community regulations.
By combining high-tech tools with high-touch customer service support, RISE provides around-the-clock monitoring and support to our communities. HOA and condo board members have a direct line to their RISE property manager to manage the proliferation of short-term rentals and address violations. Programs like Home Dome are just one of the unique ways RISE helps communities stay safe, keep connected, and maintain long-term value.