Those of us involved in condominium management, whether as board members, officers, property managers or attorneys, know that VRBO and AirBnB have changed the way units are rented. Short term rentals are viewed by many associations as a problem that should be solved.  Specifically, these associations and managers would prefer that short rentals (most often defined as less than six months or one year, but I have seen it defined as less than 30 days) be prohibited.  The problem is getting enough people to agree on the various issues:
Continue Reading Can I Use the Prohibition on “Commercial Activity” to Preclude Short Term Rentals?

Yes! Thankfully, if the association has not been doing so, there is a way to reduce your back-tax liability, interest and penalties.

  • Do you have parking that is rented out by the Association?
  • Do you charge different monthly assessments for those with a parking spot?
  • Do you charge a fee for a boat dock or storage of a boat, canoe or similar water craft?

Of course you do. No worries, the Wisconsin Department of Revenue, like most states, would be happy to perform an audit for you.  Unfortunately, they will then also seek to collect all of the taxes due. 
Continue Reading Parking Spaces – Should Your Association be Charging and Collecting Sales Tax?

Governing Documents for Condominium and Homeowner Associations don’t age well. They are not like a fine wine.  They are more like cheap cheese.  Remember, they were likely written by a developer who really only cared about them until it had sold all of its units or lots (assume 10 years or less).  So if your documents were written before 2008, it is unlikely that they have anything in them to deal with:

  1. Emotional Support Animals;
  2. Drones;
  3. Short Term Rentals (AirBnB was founded in 2008 in San Francisco);
  4. Medical Marijuana; or
  5. Unit or Lot Owners buying insurance to cover a large insurance deductibles that could be assessed against them if their actions cause an insured loss.

Continue Reading Our Governing Documents Have Aged Nicely