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I was part of a failed effort by an HOA to restrict investor-owned properties. Newer HOAs have incorporated language in their covenants to prevent investor-owned properties.
Typically this is done with a "owner occupancy" covenant, that is, requiring that the owner of the property reside in the property for the first year (or two). Worst case, they leave the place vacant for a year or two, but that conflicts with the business model, meaning they would have to "hold" the property for at least a year before they could use it to generate income.
It works, as I know another community that has this in their covenants and they've been succssful in keeping institutional and private investors out.
RM
Interesting. We are looking into updating our covenants as well. We had an investor buy a few months ago but they just ended up flipping the property and selling to a family.
Interesting. We are looking into updating our covenants as well. We had an investor buy a few months ago but they just ended up flipping the property and selling to a family.
This doesn't prevent flippers, and wasn't intended to. What it does do is make the neightborhood unattractive for institutional investors who are looking to buy properties and turn them into rentals. The community that I was in that tried to get convenants changed that was unsuccessful is now over 30% investor-owned rentals.
In fact, the property I sold in that area was purchased by a private individual, but they rented it out. 3-4 years later, it's still a rental.
This doesn't prevent flippers, and wasn't intended to. What it does do is make the neightborhood unattractive for institutional investors who are looking to buy properties and turn them into rentals. The community that I was in that tried to get convenants changed that was unsuccessful is now over 30% investor-owned rentals.
In fact, the property I sold in that area was purchased by a private individual, but they rented it out. 3-4 years later, it's still a rental.
RM
We were glad they were flippers, we were afraid they would turn it into short term rentals.
I'm pretty sure we can get enough votes to change the covenants. I'd like to see examples of what type of wording was used in communities that were able to get it through.
We were glad they were flippers, we were afraid they would turn it into short term rentals.
I'm pretty sure we can get enough votes to change the covenants. I'd like to see examples of what type of wording was used in communities that were able to get it through.
In my HOA it required 2/3 of the property owners to vote "Yes" to change or add to the CC&Rs. Sadly, many of the owners simply wouldn't sign because they were afraid to change anything. We even canvassed the owners who didn't turn in proxies door-to-door, without getting the results we needed.
Too bad - the apathy we experienced directly affected the community. It's not nearly as nice as it once was, mainly because of the poorly maintained rental properties. Getting the property managers to take care of things is a constant battle. I know, because I used to be one of the people charged with doing it.
On Monday, the city council had the first reading of a draft of a STVR ordinance. They voted for a 6 month moratorium on new STVR permits to give them time to taylor the ordinance.
Last night, Tuesday, over 100 people attended a town meeting, with the mayor and council listening to input from both homeowners against STRs in residential neighborhoods, to STR owners, who want to defend their businesses. Both sides were well represented, and it was very efficient and civil.
This whole issue started with one house on a residential street with covenants, but now it’s a citywide issue. My elderly neighbor who lives next door to the STR on my street was practically in tears last night, and the NY owner of the house in question, looked like he’d just rolled out of a dumpster. It’s taking a toll on everyone.
The more I think about this one local issue, the more I think that it is a symptom of something more sinister, like squatters having more rights than homeowners, homeless having more rights than taxpayers, and foreign countries buying up US farmland.
Home sellers need to please have a conscience when you sell your home. National companies with deep pockets are swooping into small town USA and they care nothing about your community.
Interesting. We are looking into updating our covenants as well. We had an investor buy a few months ago but they just ended up flipping the property and selling to a family.
If only ours would do that! I feel like flippers do a service in a neighborhood. As I think I mentioned, someone in my neighborhood would gladly buy this house, and sell it to a family.
On Monday, the city council had the first reading of a draft of a STVR ordinance. They voted for a 6 month moratorium on new STVR permits to give them time to taylor the ordinance.
Last night, Tuesday, over 100 people attended a town meeting, with the mayor and council listening to input from both homeowners against STRs in residential neighborhoods, to STR owners, who want to defend their businesses. Both sides were well represented, and it was very efficient and civil.
This whole issue started with one house on a residential street with covenants, but now it’s a citywide issue. My elderly neighbor who lives next door to the STR on my street was practically in tears last night, and the NY owner of the house in question, looked like he’d just rolled out of a dumpster. It’s taking a toll on everyone.
The more I think about this one local issue, the more I think that it is a symptom of something more sinister, like squatters having more rights than homeowners, homeless having more rights than taxpayers, and foreign countries buying up US farmland.
Home sellers need to please have a conscience when you sell your home. National companies with deep pockets are swooping into small town USA and they care nothing about your community.
Money will always win.
From what I read this morning they are looking closely at Savannah's ordinances regarding STVR. Good Luck
Yes, they are looking at both Savannah and Tybee right now.
I have a good friend who owns property on both Tybee and Kiawah islands. I was of the impression that Kiawah has some very restrictive convenants. Don't know about Tybee, I'll have to ask.
RM
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