Miami Beach Bans Vacation Condo Rentals Just in Time to Stop Summer Travelers

The City Commission voted Wednesday June 9th, 2010 to codify rental restrictions adopted by the Flamingo Park Neighborhood Association:

* No rentals allowed for less than six months.

* Rental restriction supersedes condominium association rules.

* Several properties in the Flamingo Park area may be eligible for grandfathering.

The City will apply the ban city-wide, and grandfathering will not apply in other zones unless approved by neighborhood groups.

In 2009, planning officials had recommended allowing weekly rentals in Flamingo Park and other multi-family areas, following a vote by the Land Use Committee in 2008 recommending that weekly rentals be allowed.

This new law sets a precedent that neighborhood associations should be given deference by the City Commission when passing zoning laws, rather than planning officials.

Complaints about short-term rentals by leaders of the Palm-Hibiscus-Star Islands Homeowners Association also led to the adoption of a 6 month rental ban in single-family neighborhoods in 2009.

Short-term rentals have continued there despite the ban, leading some to claim preferential treatment is given to celebrity property owners.

It is expected this property rights issue will continue to gather attention as litigation continues and ensues in both residential zones, as well as throughout the State of Florida.

Miami Beach to Vote Again on Condo Rental Ban

Due to a postponed meeting last month, today, Wednesday June 9, 2010, at 5PM, the City Commission will hold a public hearing and debate whether or not to ban rentals less than six months in multi-family areas of South Beach, Middle Beach, and North Beach.

The current legislative strategy seeks to avoid re-hearing the Special Master's ruling that short-term rentals are presently legal in multi-family areas, and instead codifies rental restrictions adopted by the Flamingo Park Neighborhood Association:

* No rentals allowed for less than six months

* Rental restriction supersedes condominium association rules.

* Several properties in the Flamingo Park area may be eligible for grandfathering based on criteria adopted by the Flamingo Park Neighborhood Association.

The City will apply the ban city-wide, and grandfathering will not apply in other zones unless approved by neighborhood groups.

More information can be found in the Commission Agenda at: www.miamibeachfl.gov

A complete history of this issue, beginning with the short-term rental of single-family homes in Miami Beach, can be found on this website.

Florida Community Votes to allow Short-Term Rentals (less than 30 days)

GAINESVILLE - If you have a dwelling in the Vacation Cottage zoning district on Lake Lanier you may now rent it out to vacationers for less than 30 days, and with a recommendation from the Hall County Planning Commission Monday night, that could extend to single family residential subdivision homes near the lake.

A month ago county commissioners approved permitting short term rentals of less than 30 days in the Vacation Cottage zoning district and asked planning staff for direction on possibly allowing (R-1) homeowners the same arrangement, but there would be conditions, according to Planning Director Randy Knighton.

Home owners under a private covenant that prohibits less than 30 day vacation rentals in their subdivision would not be able to rent their dwellings short term.

The Lake Lanier Convention and Visitors Bureau advocated the short term rental move as a way to open up the lakeside rental market and promote tourism.

For more info CLICK HERE

UPDATE: Commission to Decide Fate of Miami Beach Rental Market and Tourism Economy

On Wednesday, May 12th, 2010, the Miami Beach commission will vote on an ordinance set to ban weekly and monthly rentals of condos and apartments in most of South Beach, as well as large areas of North Beach.

The ordinance would "grandfather" some short-term apartment rentals, as other Florida cities have done in single-family neighborhoods, but would exempt others who failed to obtain certain licensing or bought outside of South Beach's Flamingo Park area.

When the City's zoning code was passed in 1989, Commissioners failed to ban "the decades-old tourism niche" of short-term and seasonal apartment rentals.

As a result, these short-term rentals continued to operate and gain in popularity, drawing investors and new residents who purchased with the understanding they could rent to Miami Beach's seasonal rental market.

Currently, the City collects resort tax on short-term apartment rentals, and even senior City Officials have sanctioned the rentals in condos.

On January 21, 2007, as the super-bowl headed for Miami, the Miami Herald reported:

"Some cities, such as Miami Beach, forbid owners from renting a single-family home for less than six months. The rule doesn't apply to condos, said Hilda Fernandez, Miami Beach's assistant city manager."

Now it might apply, if this new law passes, but David Kelsey, president of the South Beach Hotel and Restaurant Association, said cracking down on short-term rentals could hurt the city's tourist industry.

"One size doesn't fit all,'' he said. "Hotel rooms are fine for most people but not everyone."

The city could also be headed for more litigation if it enforces the new law.

Christian Jagodzinski, who sued in 2007 challenging the planning department's short-term rental policy, sued again after the city passed a law last year banning the rentals in single-family homes, calling it unconstitutional. The lawsuit is ongoing in federal court.

A ban on apartment and condo rentals is expected to be even more complicated, as such properties are generally purchased and zoned as rental property.

For more information, click here to read Miami Herald Article

Indiana Town Loses Short-term Rental Lawsuit

March 17, 2010

The town of Ogden Dunes cannot stop homeowners who want to rent out their property for periods of less than a month, the Indiana Court of Appeals ruled Tuesday.

In 2007, the Porter County town of 1,300 people decided to stringently enforce its residential zoning code, which the town claimed prohibited short-term home rentals. The goal was to prevent the lakefront community from becoming a resort area.

Later that year, the town accused Steven and Lauren Siwinski of renting out their beachfront home five times that summer, essentially using their residence for a commercial purpose, which is prohibited. The town sought a $2,500 fine for each day the home was rented.

Porter Superior Court Judge Mary Harper ruled in favor of the town in June.

However, the appeals court found that -- because the zoning ordinance does not specifically prohibit short-term rentals and because the rented home is being used in a residential manner -- short-term rentals do not violate the zoning ordinance.

"Nothing in the designated evidence established that any commerce or other activities not associated with a residence were ever conducted on the Siwinskis' property," wrote Judge James S. Kirsch in the court's 3-0 decision.

The decision reversed a fine of $40,000 the town imposed on Steven and Lauren Siwinski for offering their $1 million home in the small beachfront community for short-term rentals.

"We are pleased that the Court of Appeals has clarified what always appeared clear to my family: If the town wants to ban short-term rentals, then the town should pass an ordinance that specifically bans them," Steven Siwinski said.

Siwinski, a mortgage broker, sued the town in federal court in 2008, claiming that the town allowed short-term rentals for years. Siwinski said he and his wife were targeted by the town because they were part-time residents.

Click here to read the full account: CLICK HERE

Commission Continues Debate on Fate of Condo Rentals

On Thursday, February 25th, at 4 PM, the City of Miami Beach Land Use Committee will continue discussion of a ban on condominium, single-family home, and apartment leases 6 months or less in the following areas:

RM1, CD1, RO, RO3, RPS1, RPS2, TH, RMPRD, and RPMRD2:

Last month's meeting reportedly involved heated debated between Commissioner Wolfson who said such rentals are presently "legal" and should be banned, and City Staff who contend they already outlawed such rentals years ago using their own administrative interpretation.

Avon, CO approves Short-term Rentals

Avon, Colorado, home to the Vail resorts ski area, has approved an ordinance allowing short-term rentals less than 30 days in most areas of the town center.

Previously, renting out homes for 30 days or fewer was forbidden in town.

Avon, Colorado, resident Judy Neuharth, who rents out her home on weekends to cover her mortgage, said she would lose her home if she could not rent it out on a short-term basis. She applauded the council's decision.

“I'm psyched,” she said. “I can see that I can keep it (my home). Really I bought it as an investment in the first place.”

A recurring debate focused on whether short-term renters cause noise and parking troubles.

One resident said allowing short-term rentals could attract party types such as fraternity brothers, but several other people argued short-term renters tend to be family types who spend money at local shops and restaurants.

Councilwoman Kristi Ferraro argued that short-term renters are no more likely than other residents to cause problems. She said a lot of people are already renting out their homes short term and would continue to do so even if the council didn't approve the change — in the same way people drank during Prohibition.

“I think it's a right people think they should have,” she said.

In a number of neighborhoods, short-term rentals remain forbidden, due to deed restrictions. These include planned unit developments where customized laws do not allow short-term rentals. In those neighborhoods, an amendment to those customized laws would be required to allow short-term rentals.

Miami Beach to Consider Ban on Condo Rentals

On Thursday, January 28th, at 4 PM, the City of Miami Beach Land Use Committee will consider expanding the recently adopted ban on single family home rentals of 6 months or less in RS1-4 zones to include the following areas:

RM1, CD1, RO, RO3, RPS1, RPS2, TH, RMPRD, and RPMRD2:

This ordinance would "codify" the former Planning Director's opinion that any rental of residential property in multi-family zones subject to the City's resort tax on apartment rentals should be construed as an illegal "hotel use".

This opinion was nullified by Special Master Kaplan's ruling in July, 2008.

This ordinance, if adopted, would effect all single family homes, condominiums, apartments, and town-homes and will supercede any condominium association rules, restrictive covenants, and/or other regulations permitting such rentals.

On a bright note, the Staff Report mentions the possibility of allowing 1 single-family home South of Fifth to operate short-term rentals, and grants approval to several properties in Flamingo Park areas to continue renting short-term.

Pacific Grove, CA Legalizes Short-term Rentals to Reap Tax Benefits

The Pacific Grove City Council voted unanimously this week to modify a 12-year old restriction on rentals for less than 30 days. The modification would permit rentals of residential property with registration, licenses, and payment of transient occupancy tax. This move will not only legitimize activity that has been going on in the City, but will bring in some much-needed cash flow to this town.

After twelve years of short-term rentals occurring throughout the city, despite an ordinance against such rentals, the City of Pacific Grove decided to take a different approach. The City’s current ordinance, enacted by the City Council in 1997, disallows rentals of single-family residences for less than 30 days. The City has now taken the position that these rentals should be licensed, inspected and taxed. The City missed out on over a million dollars in revenue that could have been generated since the original ordinance was passed.

The advent of legalization of rentals less than 30 days is reportedly joyous news to visitors, property managers, owners of second homes in PG, and PG business persons, all of whom will benefit from having visitors to the area.

See Link HERE