It's my pleasure to welcome you to the Clark Howard show. Our mission is to serve you with information that empowers you to make better financial decisions in your life.

And today's show, Airbnb's legal battle going on with states, local governments, homeowners associations.

How that affects you as a landlord, how that affects you as a customer.

We're going to talk about that. And later, we're going to talk about that and later we're going to talk about lab created diamonds

that are taking over the jewelry business

So there are cases going on around the country about what

are the powers of homeowners associations, what are the powers that they have to retroactively change the rules,

or to restrict rentals that are short term at their properties.

The general tone of what's happening around the country

is a homeowner association can change the rules with a vote of the membership

and a place where prior you were able to rent out short term through Airbnb or

VRBO or whatever,

that you lose that ability to do so.

In some cases, depending on state law,

and this is what the courts keep hearing,

existing owners are able to continue the short-term

rentals. New owners cannot and then through attrition as people sell off you no longer have the short-term rentals.

So why is it that homeowners associations generally and condo associations are so hostile to Airbnb or the smaller VRBO.

It's really simple. You take a community where people are aware of each other, know each other, and you end up transient like a hotel.

There are a lot of people who buy a place just as an investor, no intention of ever living there,

just to rent it out with a business model and business plan that shows you can make a lot of money.

Well, the tide in the country has turned against short-term rentals. And it's funny because many of the people who use Airbnb at the same time would be horrified if there were Airbnb's next door or in a

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