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I’m getting shafted by the City.

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T

tex2539

Guest
What is the name of your state? Texas

I have a home in a small resort community in Texas that I have been using for a Vacation Rental. I have rented it by the week or weekend since Jan. 1, 2004 with a 3-night minimum. I received the following letter from the Mayor, which was mailed to all property owners.
_______________________________________________
Dear Property Owner:

The City Council met in a Special Called Meeting to discuss the enclosed DRAFT policy, Rental of Residential Property for use as Commercial Vacation Rental Property. The City Council will be meeting in a Regular Meeting on July 6, 2004, to discuss and take action on this policy.

The Council welcomes your attendance at this meeting and your input on this important issue.

City POLICY
Rental of Residential Property For Use as Commercial Vacation Rental Property

Purpose- To preserve and enhance the privacy and quiet enjoyment of the community by restricting the uses to which the residential property may be used and to continue to insure uniformity and to maintain suitable standards for the use and occupancy as exclusive residential waterfront sites.

Policy-It shall be in violation of the City 0rdinances and Deed Restrictions for single-family residential property to be leased as commercial vacation rental property.

Definitions-Residential Rental is a residence leased for a time period of not less than 30 days.

Commercial Vacation Rental is a residence leased for a time period of less than 30 days.
______________________________________________
There is not a homeowners association. And the only thing the Deed Restrictions says in regards to residential uses is the following:

“No Lot or Lots shall be used for anything other than residential purposes, and shall not be used directory or indirectly for the conduct of any business whatsoever, commercial or otherwise.”

That’s it. There is nothing about renting and certainly nothing about the length of any rentals.

Can a municipal government past this “policy”? If anyone has any input on what I can do to reverse this “policy”, I would appreciate it.
Thanks
 


B

BeenAround

Member
I would think that "...shall not be used directly or indirectly for the conduct of any business whatsoever,......" to include the "renting" that you are doing right now.

Did you try to attend this meeting they had to voice your objection to this new policy ?
 
H

Happy Trails

Senior Member
tex2539 said:
What is the name of your state? Texas

I have a home in a small resort community in Texas that I have been using for a Vacation Rental. I have rented it by the week or weekend since Jan. 1, 2004 with a 3-night minimum. I received the following letter from the Mayor, which was mailed to all property owners.
_______________________________________________
Dear Property Owner:

The City Council met in a Special Called Meeting to discuss the enclosed DRAFT policy, Rental of Residential Property for use as Commercial Vacation Rental Property. The City Council will be meeting in a Regular Meeting on July 6, 2004, to discuss and take action on this policy.

The Council welcomes your attendance at this meeting and your input on this important issue.

**You needed to go to this meeting.

City POLICY
Rental of Residential Property For Use as Commercial Vacation Rental Property

Purpose- To preserve and enhance the privacy and quiet enjoyment of the community by restricting the uses to which the residential property may be used and to continue to insure uniformity and to maintain suitable standards for the use and occupancy as exclusive residential waterfront sites.

Policy-It shall be in violation of the City 0rdinances and Deed Restrictions for single-family residential property to be leased as commercial vacation rental property.

Definitions-Residential Rental is a residence leased for a time period of not less than 30 days.

Commercial Vacation Rental is a residence leased for a time period of less than 30 days.
______________________________________________
There is not a homeowners association. And the only thing the Deed Restrictions says in regards to residential uses is the following:

“No Lot or Lots shall be used for anything other than residential purposes, and shall not be used directory or indirectly for the conduct of any business whatsoever, commercial or otherwise.”

**Our city tried to make us commercial instead of residential, because we run two seasonal businesses from our home. The reason being they were trying to charge us more money for water/sewer/garbage. Even though it was our family that was employed and these two businesses did not cause us to use anymore (of these services) than we normally would use. We did our homework and found out that this is a gray area; since a lot of people do some sort of business from their home, (babysitting, computer sales, lawn mowing service, Avon, Amway.......) We asked who was going to police this as far as defining the line of who is just residential and who is a business.

That’s it. There is nothing about renting and certainly nothing about the length of any rentals.

Can a municipal government past this “policy”? If anyone has any input on what I can do to reverse this “policy”, I would appreciate it.
Thanks
Click to expand...
**Yes, they can. The city has the power to make laws within itself. It is unfortunate you missed this meeting. Because it looks like they covered all their bases and were specifically going after owners who were renting out their property for short-term durations.
There is always something that a person can try to do; whether you will be successful is uncertain. I would start with trying to find out just how many others do run some sort of business from their home. This would have been information that would have been valuable for you prior to them actually passing this policy. You can also hope that some day these same board members will not be on the board and the people that are voted in will consider reversing the actions this board has already taken.
 
J

JETX

Senior Member
In addition to 'Happy's response, you have a HUGE potential problem in the deed restrictions.

Your post says it states: "No Lot or Lots shall be used for anything other than residential purposes, and shall not be used directory or indirectly for the conduct of any business whatsoever, commercial or otherwise.”
As such, your using the property for commercial non-residential purposes would be a violation. And yes, the fact that you are not 'resident' to the property means it is not 'residential'. Texas takes their deed restriction violations REALLY seriously and I am somewhat surprised that the HOA hasn't pursued this (or maybe they are through the city). BTW, there IS a HOA (though they may not be active)... read your deed restrictions.
 
T

tex2539

Guest
**Yes, they can. The city has the power to make laws within itself. It is unfortunate you missed this meeting. Because it looks like they covered all their bases and were specifically going after owners who were renting out their property for short-term durations.
There is always something that a person can try to do; whether you will be successful is uncertain. I would start with trying to find out just how many others do run some sort of business from their home. This would have been information that would have been valuable for you prior to them actually passing this policy. You can also hope that some day these same board members will not be on the board and the people that are voted in will consider reversing the actions this board has already taken."

I did attend the meeting. Those that chose to vocal their opinions was about halve for the Vacation Rentals and about halve against. However the city council obviously had their mine made up to approve this policy regardless.

There have been people running business out of their homes here for 30 years. And, further more, the court has ruled that renting out your home is not a commercial business.

My question was does a municipal government have the authority to regulate how long or how many days you can rent your property?
 
H

Happy Trails

Senior Member
tex2539 said:
**Yes, they can. The city has the power to make laws within itself. It is unfortunate you missed this meeting. Because it looks like they covered all their bases and were specifically going after owners who were renting out their property for short-term durations.
There is always something that a person can try to do; whether you will be successful is uncertain. I would start with trying to find out just how many others do run some sort of business from their home. This would have been information that would have been valuable for you prior to them actually passing this policy. You can also hope that some day these same board members will not be on the board and the people that are voted in will consider reversing the actions this board has already taken."

I did attend the meeting. Those that chose to vocal their opinions was about halve for the Vacation Rentals and about halve against. However the city council obviously had their mine made up to approve this policy regardless.

There have been people running business out of their homes here for 30 years. And, further more, the court has ruled that renting out your home is not a commercial business.

My question was does a municipal government have the authority to regulate how long or how many days you can rent your property?
Click to expand...
**Yes, they can make laws within itself.
But a lawyer once told me you can always fight it. If you choose to. But the outcome, in my opinion doesn't look favorable. Maybe all you neighbors that are running businesses out of their home will get together and help you fight this. Or you may have to wait until the current government positions have changed. Then they may consider reversing it.
 
J

JETX

Senior Member
tex2539 said:
the court has ruled that renting out your home is not a commercial business.
Click to expand...
I am not aware of any such ruling in Texas. Please provide the authority for your claim.
 
T

tex2539

Guest
I am not aware of any such ruling in Texas. Please provide the authority for your claim.
__________________
I’ll have to go back to the Law Library to find some citations specifically that show Renting a House is not a commerical business nor a violation of the deed restrictions in which the use of the property is to be used for residential purposes only. However I found one that is close.

The use of the property is that it be used only for residential purposes. In that case, the restrictions are not violated by a non family group of people, such as a number of unrelated, mentally-retarded individuals and their houseparents, residing on the property in a single-family dwelling. [Permian Basin Centers v. Alsobrook, 723 S.W.2d 774,777(Tex. App.--El Paso 1986, ref.n.r.e.)]
 
J

JETX

Senior Member
tex2539 said:
I’ll have to go back to the Law Library to find some citations specifically that show Renting a House is not a commerical business nor a violation of the deed restrictions in which the use of the property is to be used for residential purposes only. However I found one that is close.
Click to expand...
The issue in the case you site wasn't one of commercial vs. residential (as this issue), but was a 'single family dwelling' interpretation of a community's deed restrictions:
"'Permian Basin Centers for Mental Health and Mental Retardation' leased a home in a restricted subdivision for use as a residential family home for six mentally retarded adults. The Alsobrooks, owners of property in the subdivision, filed suit to enjoin the proposed home based on a restriction which permitted only single family dwellings used for residential purposes. The trial court found that the proposed use of the home would violate the restrictions. The court of appeals reversed and rendered judgment in favor of Permian Basin, holding that the term, "single family dwelling" referred to only the character of the structure of the residence, not the use of it. The court noted that the paragraph which contained this term dealt with the character of structures, not occupancy requirements or use."
 
H

Happy Trails

Senior Member
[/QUOTE=tex2539]I did attend the meeting. Those that chose to vocal their opinions was about halve for the Vacation Rentals and about halve against. However the city council obviously had their mine made up to approve this policy regardless.

There have been people running business out of their homes here for 30 years. And, further more, the court has ruled that renting out your home is not a commercial business.

My question was does a municipal government have the authority to regulate how long or how many days you can rent your property?[/QUOTE]



**The meeting they had defined your question.

[/QUOTE=tex2539]
Policy-It shall be in violation of the City 0rdinances and Deed Restrictions for single-family residential property to be leased as commercial vacation rental property.

Definitions-Residential Rental is a residence leased for a time period of not less than 30 days.

Commercial Vacation Rental is a residence leased for a time period of less than 30 days.[/QUOTE]



**You would be in violation of this new policy if you rent out the house for less then 30 days because the city would define you as "Commercial Vacation Rental".
 
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I

insider

Guest
rental agreement

Couldn't you generate 31 day rentals, have the paperwork such that if the renter leaves early, you keep the total 31 day rental fee (whatever rate you set), and have the option to re-rent the place within 3 days? You can't help it if people bail out early, the contract is rental for 31 days? If they leave after a week, have them fill out a form stating they left on such & such a date, then within 3 days, you can write up another agreement with the next rental. You would obviously charge something competitive to fit your needs. I'm no lawyer, but a contract is a contract, even if you determine the exit strategy??? Is this not practical?...maybe not???.
 
T

Texas3140

Guest
A few points

I believe, Texas law does not permit cities to enforce private deed restrictions such as those mentioned, only the HOA or a member of the deed restriction class may have a cause of action. Deed restrictions are a private contract, not governmental in nature, and only have credence in civil actions.

You understandably do not identify the municipality, but unless it is a Home Rule City under Texas law, with a charter which establishes specifc powers covering this area embraced by the City, it probably does not have the power to enact such a policy.

If it is a Home Rules city get a copy of the charter.

In general conditions of use inTexas, are a zoning matter governed by Texas State Law and local entities, including Home Rule cities may only enact regulations governing consistant with Texas law concerning the use of real property, by following very specifc proceedures, including a zoning commission, public hearing, etc. which does not seem to be the case here.

You might write to the City Attorney requesting he/she provide the basis in Texas law for the policy, and be sure to CC: the Texas Attorney General.

You are entitled to the peaceful and quiet enjoyment of your property, and residential does not mean you the owner has to be the resident, the term idescribes a use, not a condition of ownership.

A good an responsive source of imformation might be the Texas Attorney General's Office with whom ioften converse satisfactoily on such matters as a Texas citizen.
Their website is easy to find

Finally, a municipal corporation is a creature of the public, and its officerr appointed or elected are the publics agents, The public is not therefore bound by the acts of a few of its servants which may be wrongful and should object by lawful means when wronged an require rectification of impropoer acts.




:)
 
J

JETX

Senior Member
Texas3140 said:
I believe, Texas law does not permit cities to enforce private deed restrictions such as those mentioned, only the HOA or a member of the deed restriction class may have a cause of action.
Click to expand...
Wrong. Cities can enforce HOA restrictions.

Deed restrictions are a private contract, not governmental in nature, and only have credence in civil actions.
Click to expand...
Correct.... but then that was never an issue or relevant to this thread.

and be sure to CC: the Texas Attorney General.
Click to expand...
Why?? The Texas Attorney General has nothing to do with this. In fact the AG's office has no standing on a civil matter such as this.

You are entitled to the peaceful and quiet enjoyment of your property, and residential does not mean you the owner has to be the resident, the term idescribes a use, not a condition of ownership.
Not relevant to the issue.

A good an responsive source of imformation might be the Texas Attorney General's Office with whom ioften converse satisfactoily on such matters as a Texas citizen.
Click to expand...
Again, wrong. The Attorney Generals office is restricted in what it can do. And this does NOT include involvement in an individuals legal issues. This is from the Texas Attorney Generals statement of 'Duties and Responsibility's':
"Although the Attorney General is prohibited from offering legal advice or representing private individuals, he serves and protects the rights of all citizens of Texas through the activities of the various divisions of the agencies. Actions that benefit all citizens of this state include enforcement of health, safety and consumer regulations; educational outreach programs and protection of the rights of the elderly and disabled. The Attorney General is also charged with the collection of court-ordered child support and the administration of the Crime Victims' Compensation Fund."
Click to expand...
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