At the March 2025 Poconos STR Conference, attorney Eric Smith delivered a powerful session dissecting the legal complexities surrounding short-term rentals (STRs) in community associations and municipalities in Pennsylvania, and particularly the Poconos. He emphasized that many STR restrictions enforced by HOAs, or community association boards are invalid unless explicitly grounded in a community’s founding declarations (usually called covenants). Smith highlighted the legal hierarchy: declarations take precedence over bylaws and rules, and many communities wrongly rely on the latter to enforce limitations like rental caps, amenity restrictions, or additional fees—often without proper legal authority.
Smith shared a detailed case study involving The Hideout, a Pennsylvania community that attempted to limit STRs to just 10 stays per year via a bylaw. Smith represented the interests of those who were already renting and had restrictions imposed on them by the community association. He argued that the regulation should have been a declaration amendment, requiring a 67% owner vote—a far more difficult threshold. While the Wayne County court initially denied his request for an injunction, Smith pressed forward with litigation, citing improper voting procedures and lack of legal authority under the community’s founding documents.
Smith won at the Commonwealth Court level. The court ruled that The Hideout’s declaration only imposed a building restriction, not a use restriction, making their STR limitations invalid. Smith emphasized the community’s mistaken reliance on the Slice of Life case, a ruling that applied strictly to zoning—not private declarations or covenants. The court agreed, never even referencing Slice of Life in its decision, further discrediting its misuse by HOAs. You can read more about Two STR victories in Commonwealth Court.
Smith educated attendees on the difference between zoning regulations and private association rules. He explained that the Slice of Life ruling dealt exclusively with zoning definitions of a ‘single housekeeping unit’ and had no relevance to deed restrictions or planned community declarations. He warned that HOA attorneys often misapply this case as justification for restrictions, but such applications do not hold up under legal scrutiny.
The session also addressed overreach by municipalities, particularly in Pennsylvania’s second-class townships. Smith exposed common constitutional flaws in local ordinances, such as labeling STR violations as ‘nuisances per se,’ which can improperly justify enforcement actions. He advised STR owners to act quickly when receiving violation notices, ensuring the municipality clearly identifies the issue and how to correct it—otherwise, the notice may be unconstitutional.
Eric Smith concluded by encouraging STR owners to stand up for their property rights. He reminded the audience that associations are nonprofit corporations with fiduciary duties to their members. When community rules or ordinances overstep, owners can and should challenge them. Armed with legal knowledge and a willingness to assert their rights, STR owners can push back against improper regulation and protect their investments. If they act in a group, their efforts will have much more impact.
Eric Smith is an attorney who focuses on protecting property rights. He has been a friend of the STR industry in the Poconos and has been called on by individuals and groups alike when regulations become too restrictive. Poconos Association of Vacation Rental Owners (Poconos VRO) is a trade association that serves as the voice of the STR industry in the Poconos. If you own a STR, or are even thinking about it, I highly recommend that you join the group and take advantage of the networking, membership and growing resources.
Watch the full session here:
