short-term rental
It only gets worse: Texas Appeals Court Bans Leasing
July 10, 2025 11:25
As I've been blogging for some time, decisions allowing HOA's and subdivisions to ban short-term leasing by amending covenants were harbingers of much worse to come.
Much worse has come. On May 29, 2025, the Corpus Christi Court of Appeals held in Swan Point Landing v. Martin that my clients, who invested in rental homes in a subdivision, had no vested right to lease based on the covenants in force at the time of purchase. In that case, the original developer, who still owned about 1/2 of the lots, along with about 20 other owners, voted to amend the covenants to completely ban leasing unless the HOA board granted permission — which it didn't. The trial court struck the amendment, but the court of appeals held that banning leasing furthers a developer's "residential scheme of development."
It's a stunning result. DO NOT BUY INVESTMENT RENTAL PROPERTY IN TEXAS WITHOUT TALKING TO A LAWYER WHO HAS READ AND DIGESTED THE SWAN POINT V. MARTIN CASE.
The Martins are seeking review in the Texas Supreme Court. But in the meantime, any notion that Texas is a property-rights state is a sad illusion. Read on . . .
Much worse has come. On May 29, 2025, the Corpus Christi Court of Appeals held in Swan Point Landing v. Martin that my clients, who invested in rental homes in a subdivision, had no vested right to lease based on the covenants in force at the time of purchase. In that case, the original developer, who still owned about 1/2 of the lots, along with about 20 other owners, voted to amend the covenants to completely ban leasing unless the HOA board granted permission — which it didn't. The trial court struck the amendment, but the court of appeals held that banning leasing furthers a developer's "residential scheme of development."
It's a stunning result. DO NOT BUY INVESTMENT RENTAL PROPERTY IN TEXAS WITHOUT TALKING TO A LAWYER WHO HAS READ AND DIGESTED THE SWAN POINT V. MARTIN CASE.
The Martins are seeking review in the Texas Supreme Court. But in the meantime, any notion that Texas is a property-rights state is a sad illusion. Read on . . .
Short-term rental ban rejected by Travis County court
March 14, 2012 10:10 Filed in: Real Estate | hoa
In a clear victory for homeowners and property rights, a Travis County court has rejected an HOA ban on short-term rentals. Briarcliff Property Owners Association, Inc. v. Marvin William Hays, Jr., Cause No. D-1-GN-11-002233 (Order of March 14, 2012).Read on . . .