Lake Serene Property Owners Association Inc. v. Esplin

Lamar County · MS · Supreme Court of Mississippi

Member win · rentals

What happened

Clyde Esplin listed his Lake Serene home on Airbnb for stays of one to thirty days. After notice letters, the association board amended bylaws to ban short-term rentals and pursued enforcement/fines. Esplin defended under covenants limiting lots to residential purposes and barring trade/business but not expressly banning short-term leases. The chancery court found his use residential, invalidated amended bylaws restricting rentals, and wiped related fines/assessments. The Mississippi Supreme Court affirmed (Mar. 10, 2022) as a matter of first impression on short-term rentals as residential use.

What the court (or agency) held

Short-term rentals through platforms such as Airbnb, VRBO, and HomeAway were residential uses under Lake Serene covenants that limited lots to residential purposes and barred trade/business but did not expressly prohibit short-term leasing. The Supreme Court of Mississippi affirmed that Esplin's use was residential, that amended bylaws restricting rentals were invalid, and that fines/assessments levied against him on that theory were properly invalidated.

Why this matters for members

Without express short-term rental bans in the covenants, "residential purposes" language may allow Airbnb-style stays. Bylaw amendments that conflict with covenant use rights (and related fines) can fall with the invalid restriction.

What the member did

Defended the covenant reading that tenants' residential use is allowed without a minimum term; counterclaimed to invalidate fines and the bylaw rental ban.

Questions for the board

Questions for a lawyer

Citation

Lake Serene Property Owners Association Inc. v. Esplin, 334 So. 3d 1139; 2020-CA-00689-SCT (Miss. 2022) (2022-03-10). Supreme Court of Mississippi. Outcome chip: member_win. Source: https://law.justia.com/cases/mississippi/supreme-court/2022/2020-ca-00689-sct.html

_General information, not legal advice. Outcomes turn on facts and current law._

Source opinion

General information, not legal advice. Outcomes turn on facts and current law.

Not a law firm. Not legal advice. Confirm this against your documents and your state’s law.