Santa Monica Beach Property Owners Association, Inc. v. Acord
Bay · FL · Florida First District Court of Appeal
Member win · rentals
What happened
Santa Monica Beach Property Owners Association and directors sued owners advertising transient vacation rentals online, claiming residential-use and no-business covenants barred STRs. The trial court dismissed for failure to state a claim. On April 28, 2017, the First DCA affirmed: short-term vacation rentals used as places of abode did not violate residential/business covenants silent on duration.
What the court (or agency) held
Short-term vacation rentals did not violate covenants requiring residential use and prohibiting business use where renters used the homes as places of abode (eating, sleeping, etc.). Income, advertising, licensure, and lodging taxes did not convert residential occupancy into forbidden business use when the covenants lacked an express short-term-rental ban. Ambiguity is resolved in favor of free use. Dismissal of the association's declaratory action was affirmed.
Why this matters for members
Without an express duration ban, residential-use covenants usually allow whole-house vacation rentals. Advertising and lodging-tax compliance do not by themselves prove forbidden 'business' use.
What the member did
Moved to dismiss, emphasizing the complaint alleged no nonresidential use by guests and that covenants were silent on rental duration.
Questions for the board
- Do the recorded covenants expressly restrict rental duration or platform listings?
- Is enforcement based on guest conduct (nuisance) rather than duration alone?
- Before suing, was a covenant amendment on STRs considered?
Questions for a lawyer
- Under Acord, does this complaint allege any nonresidential use by guests?
- What amendment language would be needed to ban STRs going forward?
- How do later Florida STR statutes interact with these covenants?
Citation
Santa Monica Beach Property Owners Association, Inc. v. Acord, 219 So. 3d 111; 1D16-4782 (Fla. 1st DCA 2017) (2017-04-28). Florida First District Court of Appeal. Outcome chip: member_win. Source: https://caselaw.findlaw.com/court/fl-district-court-of-appeal/1858562.html
_General information, not legal advice. Outcomes turn on facts and current law._
General information, not legal advice. Outcomes turn on facts and current law.