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Cabin Incidental Rental
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10/7/2019 at 4:38:35 AM GMT
Posts: 4
Cabin Incidental Rental

Our tract is working toward becoming a Non-profit organization and establishing bylaws.  One topic that has come up is the ability to rent the cabins.  Some owners would like to put a "No Rental" clause in the bylaws.  As I understand it, our permit allows rental of our cabin if prior approval from the FS is obtained.  I've seen many references in articles about the RRP stating we cannot rent them out, but there is verbiage in the permit to the contrary.

I.C. AUTHORIZED USE. This permit authorizes only noncommercial recreational use by the holder's immediate family and the holder's non-paying guests, other than incidental rental that has prior written approval from the authorized officer pursuant to clause VII.A.

VII.A. INCIDENTAL RENTAL. With prior written approval from the authorized officer, the holder may rent the recreation residence covered by this permit for a limited number of short, specific periods for recreational purposes, provided the rental does not change the character or use of the authorized improvements from noncommercial to commercial. The rental agreement must be in writing and must provide that the holder remains responsible for compliance with all the terms of this permit. A copy of the rental agreement shall be provided to the authorized officer.

This leads me to a few questions:

- Is rental actually allowed under our permits?  If so, does the FS actually approve such requests?

- Would it be appropriate to put a "No Rental" clause in our bylaws, or would this be more appropriate under a set of covenants?  Do some tracts have covenants?

Any information would be appreciated.  Thanks!



10/7/2019 at 2:40:00 PM GMT
Posts: 11
Incidental Rental of Cabins
Thanks for the question. While not all regions of the National Forests enforce rental policies in the same ways, the general rule of thumb is that it is allowed but only non-commercially. That means a) no more than 14 days (more than that is considered commercial by the IRS b) only with permission in advance from the FS and c) you cannot advertise on any website or with a rental agency, etc. Generally, you can rent as a means to get some compensation for maintenance expenses (excluding taxes and permit fees).

Some tracts are concerned that renters can be less responsible and courteous than permit holder families. We recommend you establish a rules document that all renters must read and sign, so they know they can't cut wood from the trees, can't park a party of cars up and down the tract road and other rules that apply both to the permit and to your area.

The main concern is that the Forest Service (and most permit holders) don't want to see these turned into profit-making properties. They were designed for low-impact recreation of those who hold the permit and should never be bought with the purpose of making money and renting it out or even running a commercial business of any kind (though I'm certain working remotely from the cabin is allowed).

Hope this answers your questions. 

 

 



10/10/2019 at 8:02:51 PM GMT
Posts: 4
Yes it does, thanks for the information.