With the rise of platforms like Airbnb and Vrbo, short-term rentals have become a contentious issue for Florida condominium associations. While many communities seek to ban or restrict these rentals to preserve residential character, others embrace them for the economic benefit they provide to owners. But can a condo board legally ban short-term rentals—and what happens when owners challenge those rules?
The Legal Framework in Florida
Florida law allows condominium associations to adopt reasonable rules and restrictions regarding the use of units. However, the enforceability of a short-term rental ban often depends on:
- Whether the restriction was included in the original declaration of condominium
- Whether the rule constitutes a material alteration of use rights
- Proper procedural adoption of new rules
If a restriction is added after an owner purchased their unit, courts may rule that applying the new rule retroactively violates the owner’s vested rights.
Recent Court Cases
Florida courts have issued mixed rulings on this issue, making it a hot area of legal activity:
- In Costa Del Sol Ass’n v. Schneider, the court upheld a short-term rental ban as a reasonable enforcement of residential use restrictions.
- In contrast, other rulings have sided with owners where associations failed to follow proper amendment procedures or attempted to apply new rules retroactively.
Common Pitfalls for Associations
- Failing to properly amend governing documents
- Adopting rules without a member vote when required
- Enforcing restrictions inconsistently
- Ignoring grandfathering provisions for existing owners
What Associations Should Do
- Consult with legal counsel before implementing or enforcing short-term rental rules
- Ensure that rules are properly adopted and recorded
- Clearly communicate policies to all owners
- Monitor compliance fairly and consistently
Associations seeking to limit short-term rentals must strike a careful balance between community preferences, market realities, and individual property rights. A well-crafted, legally vetted policy is essential.
