AHN NJ.Iss. 1, 2018 (w)

www.AssociationHelpNow.com Issue 1, 2018 Association Help Now Resources for Community Associations and the Businesses & Professionals who serve them. ™ NEW JERSEY Read by New Jersey HOA Board Members and Managers

Maintaining Community Law and Order Amid Homegrown B&Bs By Michelle Tomko

HOA QUALIFIED MANAGEMENT COMPANIES

“...it’s not fun for

community members

who are now dealing with strangers — safety issues, noise and extra traffic — all because their neighbor has decided to make some extra money...”

Somerset Management Group

Issues with Short-Term Rentals and Lodging Websites in Associations — From an Insurance Perspective By Alyssa Gautieri

ACCOUNTANTS: Wilkin & Guttenplan, P.C.......................6 ATTORNEYS: Ansell Grimm & Aaron, PC...................5 Becker & Poliakoff.............................. 11 Griffin Alexander, PC............................8 Stark & Stark........................................3 BUILDERS/CONSTRUCTION: Add-Ventures Building Services...........8 CONDOMINIUM PROJECT APPROVAL CONSULTANTS: Project Support Services...................... 7 ENGINEERS: DW Smith Associates, LLC................ 18 The Falcon Group.............................. 12 FWH Associates, PA.......................... 17 O&S Associates...................................4 I recently discovered the money-saving option of booking a vacation rental di- rectly from the owner of a con- do on an online market place. It was a fantastic experience. I had a more personal experi- ence than if I had stayed in a hotel. Most importantly, I saved a bunch of money. But one thing I didn’t consider as an end-user

L odging websites are popping up all over the place, and many associations are finding their units and homes advertised on them, many times against the association’s bylaws which may restrict short-term rentals. Residents may ask why they can’t do this, and “what’s the big deal?,” but from an insur- ance perspective, they are put- ting the both association and themselves at risk. We spoke to Robert A. Travis, the Director of Marketing at Community Association Underwriters of America, Inc., to explore the potential risks of short-term rentals and lodging websites in associations. More and more residents of associations are beginning to use lodging websites such as Airbnb and VRBO, however associations are often unaware that its residents are doing so. According to Travis, this poses a major problem. When an insurance company puts together a program to insure Community Associations, it is

FINANCIAL ADVISORS/ INVESTMENT FIRMS: Morgan Stanley.................................. 15 GUTTERS & GUTTER CLEANING: Gutter Master..................................... 13 INSURANCE: USI Insurance Services.........................19 Community Association Underwriters.....3 Mackoul & Associates, Inc.....................14 NFP Property & Casualty.........................7 LAKE & POND MANAGEMENT: SOLitude Lake Management.............. 19 LENDERS: Mutual of Omaha Bank, Community Association Banking/CondoCerts...... 18 National Cooperative Bank.....................16 PROPERTY MANAGEMENT: ABDM Property Management............... 4 Associa................................................. 9 Cervelli Management...........................11 was “What will the neighbors think?” I honestly didn’t give them a second thought. But I can assume it’s not fun for community members who are now dealing with strangers — safety issues, noise and extra traffic — all because their neigh- bor has decided to make some extra money at home…well re- ally, with their home. 

Diversified Property Management, Inc...14 Executive Property Management........ 13 Homestead Management Services, Inc., AAMC.......................... 10 mem property management................. 2 Premier Management Associates....... 15 Prime Management, Inc., AAMC.......... 8 Somerset Management Group........... 19 RCP Management Company, AAMC, AMO...................................................... 6 RMG - Regency Management Group, AAMC......................................................18 Taylor Management Company............ 17 Towne & Country Management............ 5 Wilkin Management Group, Inc........... 19 RECONSTRUCTION/ RESTORATION: Accurate Reconstruction..........................9 Regal Restoration.....................................6 ROOFING/SIDING/WINDOWS: Add-Ventures Building Services..............8 In fact, isn’t that why resi- dential areas were invented in the first place? Business should be taking place in a whole other district, no? Or, should this new business op- portunity trump the quiet enjoyment that is expected by everyone in every com- munity? For a legal perspec- tive on this new hot-button CONTINUES ON PAGE 18.

CONTINUES ON PAGE 17. According to Travis, short- term renters are more likely to be or to cause a liability be- cause “short-term renters may not have the same care and concern about the community association that a year-round resident may have.” For ex- ample, if a short-term renter notices a spill on the floor in the lobby, they are likely go- ing to walk around it with little concern. Meanwhile a year-round resident will like- ly express concern and will likely report the slippery spot considering that year-round residents will occupy the con- dominium, which means that rates and premiums do not contemplate the increased risk of short-term renters. “...from an insurance perspective, they are putting the both association and themselves at risk.”

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