Last week, in a huge blow to Homeowner’s Associations across the state, the Texas Supreme Court issued a ruling that strongly favors a homeowner’s right to use their property for Short Term rentals. “So long as the occupants to whom Tarr rents his single-family residence use the home for a ‘residential purpose,’ no matter how short-lived, neither their on-property use nor Tarr’s off- property use violates the restrictive covenants in the Timberwood deeds,” Justice Jeff Brown wrote for a unanimous court.
This opinion is specific to HOA ordinances that attempt to ban short term rentals but is a signal of how the same court might rule should the lawsuit against the City of Austin be appealed to the state’s Supreme Court level.
A number of cities around the country are debating how to regulate short term rental (STR) properties. The infographic below contains a sample of some of the country’s more recently filed litigation relating to STR regulation. The actions are varied, including states vs. cities, cities vs. homeowners’ associations, individual property owners vs. governmental bodies and government vs. corporations, illustrating that there are no clear lines in this debate.
Click here to read our recent story on the Debate Surrounding Short-Term Rentals.