Presenting a live 90-minute webinar with interactive Q&A Airbnb and Short-Term Rentals: Practical Considerations for Landlords, Tenants, HOAs, and Other Stakeholders TUESDAY, APRIL 16, 2019 1pm Eastern | 12pm Central | 11am Mountain | 10am Pacific Today’s faculty features: Mark S. Einhorn, Partner, Marcus Errico Emmer Brooks , Braintree, Mass. Laura Lee Garrett, Partner, Hirschler , Richmond, Va. Jonathan L. Geballe, Attorney, Jonathan L. Geballe, Esq ., New York The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions emailed to registrants for additional information. If you have any questions, please contact Customer Service at 1-800-926-7926 ext. 1 .
Tips for Optimal Quality FOR LIVE EVENT ONLY Sound Quality If you are listening via your computer speakers, please note that the quality of your sound will vary depending on the speed and quality of your internet connection. If the sound quality is not satisfactory, you may listen via the phone: dial 1-866-873-1442 and enter your PIN when prompted. Otherwise, please send us a chat or e-mail sound@straffordpub.com immediately so we can address the problem. If you dialed in and have any difficulties during the call, press *0 for assistance. Viewing Quality To maximize your screen, press the F11 key on your keyboard. To exit full screen, press the F11 key again.
Continuing Education Credits FOR LIVE EVENT ONLY In order for us to process your continuing education credit, you must confirm your participation in this webinar by completing and submitting the Attendance Affirmation/Evaluation after the webinar. A link to the Attendance Affirmation/Evaluation will be in the thank you email that you will receive immediately following the program. For additional information about continuing education, call us at 1-800-926-7926 ext. 2.
Program Materials FOR LIVE EVENT ONLY If you have not printed the conference materials for this program, please complete the following steps: Click on the ^ symbol next to “Conference Materials” in the middle of the left - • hand column on your screen. • Click on the tab labeled “Handouts” that appears, and there you will see a PDF of the slides for today's program. • Double click on the PDF and a separate page will open. Print the slides by clicking on the printer icon. •
Airbnb and Short-Term Rentals: Practical Considerations for Landlords, Tenants, HOAs, and Other Stakeholders Laura Lee Garrett lgarrett@hirschlerlaw.com
AIRBNB AND SHORT-TERM RENTALS PRACTICAL CONSIDERATIONS FOR LANDLORDS, TENANTS, HOAS AND OTHER STAKEHOLDERS OVERVIEW, HISTORY AND TRENDS • Internet provides a platform for property to owners to easily rent out their homes and properties for via Airbnb, Vacation Rentals by Owners (VRBO), HomeAway, etc. directly to the consumer • Part of the Shared Economy • VRBO • VRBO first website of its kind, started in 1996 by a couple to help rent their ski condo • In 2006, VRBO was bought by HomeAway. It was then bought by Expedia in 2015 • VRBO’s website boasts “over 2 million house rentals in 190 cities worldwide” • AIRBNB • Airbnb was started in 2007 by Joe Gebbia and Brian Chesky. It started out as a website called airbedandbreakfast.com and then was shortened to its current name • DIRECT BOOKING (WEBSITE) 6
LEGAL DISTINCTION BETWEEN SHORT-TERM RENTALS AND LONG-TERM RENTALS • Vary in profitability, management, time commitment, location and legality • Short-term rentals are the rental of a furnished property that offers nightly or weekly rentals • Long-term rentals receive rent for an agreed length of time, usually a year or longer, but can be less • Both types of rentals have their advantages and disadvantages • Short-term rentals can achieve up to 30% higher rates and yields than long term rentals. They also offer more privacy and space for less cost than hotels. • They have great flexibility for real estate investing 7
CONSIDERATIONS OF LANDLORDS AND TENANTS WHEN ENTERING INTO SHORT TERM RENTALS REMEDIES AVAILABLE FOR DAMAGES TO THE RENTAL UNIT • The Airbnb “Host Guarantee” • By posting a listing or otherwise using the Airbnb platform as a host, you agree to comply with and be bound by the Host Guarantee Terms. • Airbnb agrees to pay you to repair or replace your Covered Property damaged or destroyed as a result of a Covered Loss, subject to the limitations, exclusions and conditions in the Host Guarantee Terms. • Host must communicate with the responsible guest as soon as possible after discovery of any physical loss or damage to your Covered Property and notify Airbnb; within the earlier of (i) 14 days of the check-out date; or (ii) before the next guest checks in . Host may satisfy this requirement by submitting a claim with the Airbnb Resolution Center. • “Covered Property” • “Excluded Property” • “Excluded Losses” • “Covered Loss” 8
VRBO PROPERTY DAMAGE PROTECTION • Host can include Property Damage Protection in the quote which will protect the rental from accidental damage. • Property Damage Protection provides up to $5,000 in coverage for accidental damage to the vacation rental. • Plans are $59 (for $1,500 in coverage) $79 (for $3,000 in coverage) and $99 (for $5,000 in coverage) and with no deductible and a quick online claims process • Protects against accidental damages including broken lamps and windows, damaged doors, walls and furniture, stained bedding, towels, or linens, and lost or stolen keys including re-keying costs. 9
THE HOMEOWNER’S INSURANCE POLICY • Most traditional homeowner’s policies do not cover STRs • Will cancel coverage upon becoming aware of STRs • Different risk than residential living • Shop insurance companies that will cover STRs • Losses that are likely NOT covered by homeowners insurance: • A paying guest’s belongings • If a paying guest steals host property during their stay • If a guest injures somebody or causes damage to a neighbor’s property • If a guest damages host property SECURITY DEPOSITS • VRBO will collect a refundable damage deposit in an amount set by the host • VRBO manages the collection and return of the refundable damage deposit with communication to the host • System for management with Direct Rentals 10
SHORT TERM RENTAL AGREEMENT BASICS • Airbnb and VRBO • Terms, conditions and policies on website • Section to add separate written agreement • Direct booking • Written agreement governs • Hosts must disclose the actual contract terms to them prior to booking. Mention the contract in the listing’s description and include the terms in the message thread with the guest. • Airbnb/VRBO will not help enforce any special policies in your contract • Rental agreement should address • Any extra fees • Cleanliness • Specify the expectations the guest may have for your rental’s cleanliness and your expectations for how the guest should leave the rental upon departure. • Maintenance • Host Access 11
REGULATION OF SHORT-TERM RENTALS • Short term rental market booming but laws pertaining to it have had little time to catch up with the growth • No overarching federal law that regulates the market • Individual states and local counties, cities and towns must pass laws reflective of their communities and prevailing views on and capacity to accommodate short term rentals • Regulations vary from complete prohibition to limited requirements 12
TYPICAL ELEMENTS OF REGULATIONS • Regulations should address: • Registration/permitting • Zoning control • Where can an STR operate • Who can operate an STR • Number of nights of operation • Number of Renters; Hosted vs. Non-Hosted stays • Parking requirements • Events • Collection and Remittance of Local Taxes 13
Airbnb and Short-Term Rentals: Practical Considerations for Landlords, Tenants, HOAs, and Other Stakeholders Mark S. Einhorn meinhorn@meeb.com
CONDOMINIUM CONCERNS FOR SHORT-TERM RENTALS I. Quality of Life Intense Use/Nuisance: Short-term rentals are a more intense use of property and the use is outside of typical life cycles of resident/family unit. (i) Multiple groups; Move-in/Move-out; Safety (physical and mental) (ii) Airbnb Mentality – the world (and temporary home) is your oyster (iii) On average renters do not care for the property to the same degree as resident owners 15
II. What Type of Use is it? Short-term use is neither strictly a home use nor a hotel use as those terms have historically been defined. Courts are grappling with this issue especially in the HOA/Condominium context. Courts are trying to determine if the use constitutes a commercial/business use OR whether the use is merely a residential use, albeit more intensive. 16
Recommend
More recommend
