{"id":401,"date":"2018-07-10T21:33:00","date_gmt":"2018-07-10T21:33:00","guid":{"rendered":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/?p=401"},"modified":"2023-12-15T21:57:41","modified_gmt":"2023-12-15T21:57:41","slug":"short-term-rentals-such-as-airbnb-held-not-to-violate-a-covenant-prohibiting-commercial-use-contrary-to-rulings-of-some-other-courts","status":"publish","type":"post","link":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/2018\/07\/10\/short-term-rentals-such-as-airbnb-held-not-to-violate-a-covenant-prohibiting-commercial-use-contrary-to-rulings-of-some-other-courts\/","title":{"rendered":"Short term rentals (such as Airbnb) held not to violate a covenant prohibiting &#8220;commercial use&#8221; contrary to rulings of some other courts"},"content":{"rendered":"\n<p>Courts disagree about whether covenants prohibiting &#8220;commercial use&#8221; of real property apply to short term rentals like Airbnb. While some courts have said that such rentals do constitute commercial use, see, others have found the use not to be commercial but residential in nature. The Arkansas Supreme Court joined the courts that find Airbnb to be a residential rather than a commercial use of property.&nbsp;<a href=\"https:\/\/cases.justia.com\/arkansas\/supreme-court\/2018-cv-16-1041.pdf?ts=1518105997\">Vera Lee Revocable Trust v. O&#8217;Bryant,&nbsp;<\/a>537 S.W.3d 254 (Ark. 2018).&nbsp;<em>Accord,&nbsp;<\/em><a href=\"https:\/\/casetext.com\/case\/slaby-v-mountain-river-estates-residential-assn-1\">Slaby v. Mountain River Estates Residential Ass&#8217;n, Inc.,<\/a>100 So. 3d 569 (Ala. Ct. Civ. App. 2012).<\/p>\n\n\n\n<p>This is an ongoing debate among courts:<\/p>\n\n\n\n<p>Some courts hold that short term rentals (such as Airbnb rentals) violate covenants that restrict the property to \u201cresidential use,\u201d finding short-terms rentals to be closer to hotel use and thus commercial in nature.&nbsp;<a href=\"http:\/\/162.114.92.72\/COA\/2012-CA-002193.pdf#xml=http:\/\/162.114.92.72\/dtSearch\/dtisapi6.dll?cmd=getpdfhits&amp;u=27b7770b&amp;DocId=31907&amp;Index=D%3a%5cContent%5cop%2ekycourts%2enet%5cIndex%5cBoth%5fCourts&amp;HitCount=3&amp;hits=19+1b+47+&amp;SearchForm=%2fdtsearch%5fform%2ehtml&amp;.pdf\" class=\"mtli_attachment mtli_pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Vonderhaar v. Lakeside Place Homeowners Ass\u2019n<\/a>, 2014 WL 3887913 (Ky. Ct. App. 2014).<\/p>\n\n\n\n<p>Other courts find short term rentals to be compatible with \u201cresidential use\u201d and not a violation of such restrictive covenants at all.\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.courts.wa.gov\/opinions\/pdf\/868701.pdf\" class=\"mtli_attachment mtli_pdf\" target=\"_blank\">Wilkinson v. Chiwawa Communities Ass\u2019n,<\/a>\u00a0327 P.3d 614 (Wash. 2014);\u00a0<a rel=\"noreferrer noopener\" href=\"http:\/\/caselaw.findlaw.com\/fl-district-court-of-appeal\/1858562.html\" target=\"_blank\">Santa Monica Beach Property Owners Ass\u2019n v. Acord,<\/a>\u00a0219 So.3d 111 (Fla. Dist. Ct. App. 2017).<\/p>\n\n\n<div class=\"taxonomy-category wp-block-post-terms\"><a href=\"https:\/\/faculty.law.harvard.edu\/joseph-singer\/category\/leaseholds\/\" rel=\"tag\">Leaseholds<\/a><span class=\"wp-block-post-terms__separator\">, <\/span><a href=\"https:\/\/faculty.law.harvard.edu\/joseph-singer\/category\/servitudes\/\" rel=\"tag\">Servitudes<\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Courts disagree about whether covenants prohibiting &#8220;commercial use&#8221; of real property apply to short term rentals like Airbnb. While some courts have said that such rentals do constitute commercial use, see, others have found the use not to be commercial but residential in nature. The Arkansas Supreme Court joined the courts that find Airbnb to be a residential rather than a commercial use of property.&nbsp;Vera Lee Revocable Trust v. O&#8217;Bryant,&nbsp;537 S.W.3d 254 (Ark. 2018).&nbsp;Accord,&nbsp;Slaby v. Mountain River Estates Residential Ass&#8217;n, Inc.,100 So. 3d 569 (Ala. Ct. Civ. App. 2012). This is an ongoing debate among courts: Some courts hold that short term rentals (such as Airbnb rentals) violate covenants that restrict the property to \u201cresidential use,\u201d finding short-terms rentals to be closer to hotel use and thus commercial in nature.&nbsp;Vonderhaar v. Lakeside Place Homeowners Ass\u2019n, 2014 WL 3887913 (Ky. Ct. App. 2014). Other courts find short term rentals to be &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/faculty.law.harvard.edu\/joseph-singer\/2018\/07\/10\/short-term-rentals-such-as-airbnb-held-not-to-violate-a-covenant-prohibiting-commercial-use-contrary-to-rulings-of-some-other-courts\/\"> <span class=\"screen-reader-text\">Short term rentals (such as Airbnb) held not to violate a covenant prohibiting &#8220;commercial use&#8221; contrary to rulings of some other courts<\/span> Read More &raquo;<\/a><\/p>\n","protected":false},"author":17,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","footnotes":""},"categories":[33,35],"tags":[],"class_list":["post-401","post","type-post","status-publish","format-standard","hentry","category-leaseholds","category-servitudes"],"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"jsinger","author_link":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/author\/jsinger\/"},"_links":{"self":[{"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/posts\/401","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/users\/17"}],"replies":[{"embeddable":true,"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/comments?post=401"}],"version-history":[{"count":0,"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/posts\/401\/revisions"}],"wp:attachment":[{"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/media?parent=401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/categories?post=401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/faculty.law.harvard.edu\/joseph-singer\/wp-json\/wp\/v2\/tags?post=401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}