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Short-Term Rental Project

Updated: May 30

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Community Short-Term Rental Project

Revision, May 2020

PROBLEM

The Civic Association of Palisades (CAP) Board of Governors (BOG) has been asked to study the issue of whether short-term renters (STR) should be allowed to use community facilities.

BACKGROUND

Why is there concern?

Community members are concerned that STR are transient and are not members of the community. They have no vested interest in maintaining community facilities in good condition, and therefore pose a potential threat to them.

Have problems with short-term renters been observed in the community?

To date, there has been no report of improper behavior by STR who have used the community facilities. Improper behavior has been observed, however, at property occupied by STR.

What is the difference between a short-term and long-term renter?

Anne Arundel County Council Bill 88:19 defines STR as transient guests who use all or part of a dwelling unit in exchange for rent for no more than 120 consecutive days in a calendar year.

Do CAP bylaws for Membership currently differentiate between short- and long-term renters?

No. According to CAP Bylaws, CIVIC ASSOCIATION OF THE PALISADES, INC. BY-LAW ARTICLE II, MEMBERSHIP – “Households renting properties or renting apartments in properties within the community are eligible for Associate Membership. The dues and fees are the same as for Full Membership and include the use of all community facilities, but Associate Membership is not a voting membership and does not provide the Associate Member with the right to serve on the Board of Governors.

Are there County laws affecting short-term renters?

Anne Arundel County Council Bill 89:19, which became effective April 9, 2020, states that STR may only occupy a rental unit that is hosted by an owner with an up-to-date, approved license and registration with the Department of Inspections and Permits.

What protection does Bill 89:19 provide with regard to short-term renters?

Short-term renters who occupy an illegal rental unit - defined as a rental unit whose owner/host has not obtained an up-to-date license and registration - would be considered trespassing if they used the community property. Additionally, if disruption occurred due to a STR, a complaint could be made with the Department of Inspections and Permits, where the host and dwelling are registered.

Should a short-term renter be considered a renter or a guest?

This is an important question to ask since the CAP bylaws and Community Property Guidelines treat a renter and guest differently. A renter may become a CAP Associate Member with full access to community facilities, whereas a guest may only use the community facilities when accompanied by a CAP member.

Distinguishing whether a STR is a renter and guest comes down to a problem of semantics. The dictionary defines renter as “a person who rents an apartment, a car, or other object.” Guest is defined as “a person who is invited to visit the home of or take part in a function organized by another.” STR web sites traditionally use the term guest/host to describe the relationship between the renter and the owner, while property management companies traditionally use the term tenant/landlord for long-term renters. When confronted with the dilemma of whether a person is a renter or a guest, property management companies, in the most basic of terms, define a renter as a person or people who pay rent to live on your property and who you have a contractual agreement with. A guest is not responsible for paying rent or upholding a contractual agreement.

OPTIONS FOR CONSIDERATION

CAP BOG has discussed various options for STR use of the community facilities. These options are presented below.

OPTION #1: STR are not allowed to use community facilities.

OPTION #2: The community considers STR to be renters and, therefore, requires them to become members and pay a membership fee in order to use the community facilities. (Price designations are considered examples only. Request for STR licence information assures that the STR host is licenced and registered with the County.)

Choice A: Short-term and long-term rental fees are equal, each with the privilege of Associate Membership.

$95 Full Membership (Households owning property within the boundaries of the Association).

$95 Associate Membership (Households renting properties or apartments within the boundaries of the Association).

Choose one:

Household renting a property within the boundaries of the Association.

Includes all short-term rental households hosted at the homeowners property (Dues paid by homeowner)

Short-term rental Licence # ______________________________________________

Choice B: Short-term and long-term rental fees differ, each with privilege of Associate Membership.

$95 Full Membership (Households owning property within the boundaries of the Association).

$95 Associate Membership (Households renting properties or apartments within the boundaries of the Association).

$125 Transferable Associate Membership

Includes all short-term rental households hosted at the homeowner’s property (Dues paid by homeowner)

Short-term rental Licence # ______________________________________________

Choice C: Short-term and long-term rental fees differ, each with privilege of Associate Membership.

$95 Full Membership (Households owning property within the boundaries of the Association).

$95 Associate Membership (Households renting properties or apartments within the boundaries of the Association).

$50 Household hosted at the homeowner’s property (Dues paid by homeowner for each STR hosted)

Short-term rental Licence # ______________________________________________

OPTION #3: The community considers STR to be guests and, therefore, STR would not be required to become members or pay a membership fee in order to use the community facilities. However, if they do use them they must be accompanied by a member.

FURTHER CONSIDERATIONS

To assure that everyone who uses the community facilities are aware of the Community Guidelines:

  1. Homeowners who offer STR through hosting platforms such as Airbnb, Vrbo, etc., could be encouraged to list CAP Community Guidelines on their hosting platform as part of their House Rules. Upon making the rental reservation, the renter agrees to the House Rules. Additionally, CAP Guidelines could be displayed within the rental unit.

  1. Homeowners that offer rentals through long-term lease agreements could be encouraged to list the CAP Community Guidelines in their rental agreement and display CAP Community Guidelines within the rental unit.

  1. For all applicants, a check box could be placed on the CAP Membership form that states that the applicant has read the Community Guidelines listed on the PalisadesontheSevern.com website.

ADDENDUM

Current CAP ByLaws for Membership

1. Any property owner or renter whose property lies within the boundaries of Palisades on the

Severn, Palisades Park, or Severn Landing will be eligible for membership.

2. Full Membership – Households owning property within the boundaries of the Association are

eligible for Full Membership. Upon payment of the designated dues and fees, Full Members may

use all community facilities, vote at community meetings, and request the Board to attend

Board meetings as observers. Full Members who are year-round residents of the community

may serve on the Board of Governors.

3. Associate Membership – Households renting properties or renting apartments in properties

within the community are eligible for Associate Membership. The dues and fees are the same as

for Full Membership and include the use of all community facilities, but Associate Membership is

not a voting membership and does not provide the Associate Member with the right to serve on

the Board of Governors.

4. Membership shall include all persons in a household. Each Full Membership (household) will be

entitled to only one vote. The eligibility for each membership will be verified

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