Rental Rights Upheld
March 20, 2008
In most of America, the issue of whether or not
homeowners can lease residences as short term rental units may not
be the subject of sizzling debates. In Florida,
however, the use of beachfront and non-waterfront homes near major
tourist attractions as vacation rentals is commonplace and a vital
part of the Sunshine State's economy. Increasingly, local
governments are seeking to restrict short term rentals and these
property rights infringements are producing heated debates.
This week, Florida's 12th Judicial
Circuit Court issued an important pro-property rights ruling
overturning a municipal decision to limit short-term rentals to
three times per year. Judge Robert
Bennett's order in Stephen E. Milo, et al.
vs. the City of Venice, stated the City's decision was
"clearly erroneous." This ruling has
statewide implications.
In August 2006, the City's planning and zoning
director declared houses in single-family residential neighborhoods
could not be rented for 30 days or less in excess of three times
per year. Property owner Stephen Milo joined with
a group of owners in appealling this decision to the Planning &
Zoning Commission. The P&Z Commission sided unanimously with
Milo. In December 2007, the Council overturned the P&Z and
supported the zoning director's decision to limit rentals.
Mayor Ed Martin remarked, "The owners can accept
that fact or go to court."
Judge Bennett's ruling invalidates the City
Council decision and clarifies that temporary residences are
expressly allowed under City Code, without limitations.
"The mayor and the city
council told us we go had to go to court, and that's exactly
what we did,"said Milo's attorney
Rick Rumrell. "The homeowners were able to come
away with a significant victory for protection of their property
rights."
Municipalities across Florida
may now be forced to reconsider their policies and could be liable
for financial damages inflicted by ordinances restricting short
term rentals. The ruling may impact municipalities inappropriately
limiting rentals on the basis of duration or frequency of use and
may apply to the enactment of rental restrictions where owners are
not compensated for the impact of these regulations.
"This is a clear victory for property
owners," said Valerie Fernandez,
managing attorney with the Pacific Legal
Foundation, a non-profit, public-interest legal
organization which assisted in the case. "The court
ruled unambiguously that, when governments seek to take property or
even a portion of someone's property, the owners must be justly
compensated under the 5th
Amendment."
In light of Florida's current property tax and
insurance crises, denying non-homestead property owners the ability
to derive income from their property may effectively force some
owners to relinquish ownership.
Regulations which diminish usage rights and openly
discourage property investment are not healthy for property rights
or Florida's economy.
CONGRATULATIONS!
Congratulations to property owners Stephen Milo, Sara Milo,
Damaris Milo, Alan Evans, Cecilia Evans, Daniel
Cohen, Venice
Sunshine, Venice Real Estate Investors, Venice
HSD, Venice Beach Investors, and Vacation Rental
Pros Property Management on this great legal victory and
for your courage in fighting for your rights!
Kudos also go out to attorneys Rick
Rumrell and Alicia Curran of the
Rumrell, Costabel, Warrington & Brock law firm
in Jacksonvilleand
to Valerie Fernandez of the Pacific
Legal Foundation's Atlantic Center!
JOIN CPR!
To join or financially support CPR's work to
preserve property rights in Florida,
sign up today via our website at http://www.proprights.com/ or call us
at 407-481-2289
for information on corporate and individual membership.
