Short-Term Rental Would Not Be ‘Grandfathered’

Question: We have owned our Gilbert home for 30 years. In the last 2 years we have been the unfortunate neighbors of a short-term rental home. This short-term rental home has been a nightmare with parties every night, police being called, etc. If our community amends our CC&Rs to prohibit short-term rentals, is the neighboring short-term rental home “grandfathered” or will the short-term rentals have to stop? If the short-term rental home is not stopped, we want to sell our home. Will we have to disclose this short-term rental home?

Answer: First, if the CC&Rs are amended to prohibit short-term rentals, there is no “grandfathered” protection for the short-term rental home, which could no longer be leased as a short-term rental home. Second, any home (whether a short-term rental home or not) which is a “noisy” home with parties, police calls, etc., is a material and adverse defect which must be disclosed to buyers of your home.