Oklahoma Supreme Court Rules Short-Term Rental as Business Activity, Siding with HOA
The Oklahoma Supreme Court, in a 5-4 decision, has ruled that operating a short-term rental constitutes 'business' activity, upholding a homeowners association's (HOA) prohibition against such use. The case involved homeowner Adewale 'Wale' Tawose in the SilverHawk neighborhood of Oklahoma City, who had been renting his property through platforms like Airbnb and Vrbo since 2019. The SilverHawk HOA's covenants prevent homeowners from operating a 'store or business' from their properties, though they do not explicitly mention short-term rentals. Tawose argued that short-term rentals fall under residential use, as lessees use the home for living purposes. However, Justice James Edmondson's majority opinion stated that Tawose's activity was akin to a motel or hotel, which are recognized commercial relationships. The court affirmed an earlier district court ruling that Tawose is subject to fines and must cease short-term rentals, noting he had earned over $81,000 and paid lodging taxes, which were presented as ...
