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

Questions for a lawyer

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._

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.