The topic of Airbnb and similar short-term rental sites is on most boards’ minds these days as more and more owners look to monetize their condominium and cooperative units as well as their single family homes.

Recently, the First District Court of Appeal issued a ruling last month in the case of Santa Monica Beach P.O.A. v. Acord, which held that residential use restrictions in a community’s covenants were not sufficient to curb short-term rental activity. The homeowners, David and Virginia Acord, listed their homes on the VRBO website, obtained transient rental licenses in a corporate name and collected and remitted state sales and local bed taxes. The association asserted that such activity violated the Santa Monica Beach subdivision restrictive covenants which stated: Said land shall be used only for residential purposes, and not more than one detached single family dwelling house and the usual outhouses thereof, such as garage, servants’ house and the like, shall be allowed to occupy any residential lot as platted at any one time; nor shall any building on said land be used as a hospital, tenement house, sanitarium, charitable institution, or for business or manufacturing purposes nor as a dance hall or other place of public assemblage.

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