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City files lawsuit against vacation rental owners

City files lawsuit against vacation rental owners

Written by Joe Hendricks on . Posted in Anna Maria, Community News, Featured.

ANNA MARIA – The city has filed a lawsuit against the owners of a vacation rental home whose guests received five noise ordinance violation citations in a nine-month period.

The vacation rental at 313 Magnolia Ave. is managed by Vacasa and owned by the Orlando-based Mangoes on Magnolia LLC that lists Mukesh Patel and three others with the same last name as the LLC’s principals.

The noise violations documented from June 2021 to March 2022 are in violation of the city code, according to the lawsuit.

During a code enforcement hearing on May 18, Special Magistrate Jerry Buhr declared the vacation rental to be a public nuisance. On May 26, the city commission authorized City Attorney Becky Vose to file a lawsuit seeking a one-year suspension of the LLC’s city-issued vacation rental license.

“The lawsuit was filed yesterday,” Mayor Dan Murphy said at the June 9 city commission meeting. “They’ve already assigned a judge to our case and we are moving forward with it. We are going to go to court looking for injunctive relief – looking for a one-year suspension of his ability to rent as a vacation rental. So fasten your seatbelts.”

City files lawsuit against vacation rental owners

The case has been assigned to Judge Edward Nicholas. – Joe Hendricks | SunJudge Edward Nicholas has been assigned to the case. In 2019, Nicholas ruled in favor of the city of Bradenton Beach in a Sunshine Law lawsuit that city filed against six former city advisory board members. He later ordered three of the defendants to pay the city $369,498 as partial reimbursement for the attorney fees the city incurred when prevailing in that case.

Lawsuit complaint

The lawsuit complaint was filed with the Circuit Court of the 12th Judicial Circuit in Manatee County on June 8, naming Mangoes on Magnolia LLC as the defendant.

The city seeks a court ruling that the rental property is a public nuisance and therefore can be prohibited from operating as a vacation rental for one year.

According to the complaint, “This is an action for injunctive relief, seeking to judicially declare the vacation rental property located at 313 Magnolia Avenue to be a public nuisance because of five egregious noise violations in the short period of nine months, and to close such public nuisance as a short-term rental for a period of one year. Such action is necessary to protect the public health, safety and welfare of the citizens of and visitors to the city of Anna Maria.”

The complaint cites city code regarding multiple noise violations: “Three or more violations occurring at the same premises within any rolling 12-month period shall be deemed prima facie evidence that the premises is a public nuisance and subject to being temporarily and/or permanently enjoined.”

According to the complaint, “The mere imposition of fines through the normal code enforcement process is not a sufficient mechanism to compel compliance with the Anna Maria code of ordinances, and the city of Anna Maria has no reasonable expectation of being able to abate the violation on the subject property now and into the future to prevent further violations which significantly negatively impact the quality of life of the affected residences in proximity to the subject property.”

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Noisy vacation rental home declared public nuisance

Vacation rental owner responds to public nuisance declaration

Vacation rental owner responds to public nuisance declaration

Written by Joe Hendricks on . Posted in Anna Maria, Community News, Featured.

ANNA MARIA – Property owner Mukesh Patel feels that city officials are overreaching in their efforts to declare his vacation rental home at 313 Magnolia Ave. a public nuisance because of repeat noise ordinance violations.

Patel is one of four people bearing the same last name who are listed as authorized persons for the Orlando-based Mangoes on Magnolia LLC that owns the vacation rental home where guests have received five noise ordinance violation citations in nine months, between June 2021 and March of this year.

During a code enforcement hearing on May 18, Special Magistrate Jerry Buhr ruled in favor of the city and declared the vacation rental home at 313 Magnolia to be a public nuisance.

On May 26, the Anna Maria City Commission authorized City Attorney Becky Vose to file a lawsuit against the Patel’s LLC seeking injunctive relief, which includes the potential suspension of the LLC’s city-issued vacation rental license for up to one year. If successful in court, the city’s lawsuit could result in the LLC temporarily losing its ability to use the residential property as a short-term vacation rental. The vacation rental is managed by Vacasa.

“Special magistrates in Florida don’t have jurisdiction to do anything but declare them a public nuisance,” Vose said during the May 26 meeting. “They don’t have the right to give injunctive relief. Our code does allow us to file suit in circuit court to ask the court to declare the public nuisance and give us injunctive relief to stop it going forward.”

“The injunctive relief that I recommend we go after in this particular case is a suspension of the owner’s right to use that property as a vacation rental for one year,” Mayor Dan Murphy said. “I feel very strongly that a one-year suspension should get the message across that this type of behavior in our city is not allowed.”

On May 29, Vose sent Patel an email that said, “Last Thursday evening, the Anna Maria City Commission authorized me to file suit in Circuit Court in Manatee County against your LLC as a public nuisance and request injunctive relief. Thank you for your attention to this matter.”

Patel response

On May 31, Patel responded to Vose’s email and copied Murphy and Code Enforcement Manager Sandy Olson in his response.

“I feel like this is an incredible overreach, especially as I have tried so hard to work with both the neighbor, as well as the city, to put forward mitigation efforts to prevent future issues,” Patel stated in his email.

Patel purchased the home in September 2013 and transferred its ownership to the Mangoes on Magnolia LLC that November.

“As you all know, the Island has become a vacation favorite for many and having five violations within a nine-year rental period with thousands and thousands of bookings doesn’t seem to merit this,” Patel wrote.

“I have worked, and will continue to work, collaboratively with the city on making Anna Maria a great place to live, work and vacation. However, I do feel very strongly that I’m being targeted for some reason. I will begin a search for an attorney who can represent me and will be back in touch once I retain one. It’s a real shame that this has gotten to this point, despite my good faith efforts to work diligently with the city,” Patel wrote.

As of June 3, the city had not yet filed its civil lawsuit. Vose recently said the lawsuit would be filed after the city receives the court reporter’s verbatim transcript of the May 18 code enforcement hearing.

Related coverage

 

Anna Maria taking vacation rental owners to court

 

Noisy vacation rental home declared public nuisance

Noisy vacation rental home declared public nuisance

Noisy vacation rental home declared public nuisance

Written by Joe Hendricks on . Posted in Anna Maria, Community News.

ANNA MARIA – Special Magistrate Jerry Buhr has declared a vacation rental home at 313 Magnolia Ave. to be a public nuisance due to repeated noise ordinance violations.

The city of Anna Maria now plans to file a lawsuit against the property owners, which could potentially result in the suspension of the property owners’ city-issued vacation rental license.

Code Enforcement Manager Sandy Olson presented the city’s case and its requested actions to Buhr during the May 18 code enforcement hearing at city hall. In addition to having the Magnolia property declared a nuisance, the city also sought $389 for administrative fees, court reporter fees and case-related postage.

The vacation rental home is owned by Mangoes on Magnolia LLC, registered to Orlando-based brothers Mukesh and Raju Patel, both of whom attended Wednesday’s hearing remotely on Zoom. According to Olson, the rental property is managed by Vacasa and the hearing agenda referenced the Vacasa office in Holmes Beach.

“This property has been cited for noise violations on five separate occasions within a period of nine months. Section 26-95 (of the city code of ordinances) states that three or more violations occurring at the same premises within any 12-month rolling period shall be deemed prima facie evidence that the premises is a public nuisance,” Olson said during her opening remarks. Manatee County Sheriff’s Office deputies issued noise violation citations to rental guests at 313 Magnolia Ave. on June 5, 2021, Aug. 28, 2021, Oct. 9, 2021, Oct. 22, 2021, and March 16 of this year.

Olson’s presentation included testimony given by deputies Paul Boos and Max Penberthy. Boos issued the first noise ordinance violation citation and Penberthy issued the next four. The deputies provided detailed accounts of each encounter that resulted in a citation being issued. Olson also presented body camera videos that documented the deputies’ encounters with those receiving citations.

Noisy vacation rental home declared public nuisance
Sandy Olson, left, presented the city case to Special Magistrate Jerry Buhr, which included testimony from Deputy Max Penberthy. – Joe Hendricks | Sun

All five citations were issued as a result of the loud music and/or talking the deputy heard when responding to a noise complaint. In each instance, the deputies explained to the rental guest that the first offense results in a $35 fine for the person renting the home, with the fines escalating to $250 for a second offense and $500 for a third offense during the same rental period.

Cindy McAnulty and her husband own the duplex at 311 Magnolia Ave. and made four of the five noise complaints that resulted in citations being issued. McAnulty said the couple lives in one unit and uses their other unit as a vacation rental that’s never been the subject of a noise complaint.

McAnulty said she’s a sound sleeper but has often been awakened by the noise coming from the house next door. She also said some of her vacation rental guests have mentioned the noise next door.

John Jarmon lives at 315 Magnolia Ave. and he also testified. He said he has not yet called the sheriff’s office, but there have been several occasions when the loud noise coming from 313 Magnolia woke him up.

Corrective actions

Patel said he notified Vacasa after the city made him aware of each noise violation. Patel also referenced a letter he sent to Olson on May 10 which detailed the efforts now being made to resolve the noise issues. Patel’s letter states he provided McAnulty with his direct contact information and asked her to share it with her neighbors. The letter states a face-to-face meeting was to be coordinated so McAnulty and Vacasa representatives can discuss these concerns in person.

According to the letter, a noise alert system was installed in the pool area and is programmed to set off an alarm when guests exceed the allowed noise threshold. Additional noise-related notices were posted inside the house and signs were placed on two pool gates and in the pool area.

Patel’s letter says guests will now be evicted if cited for a noise ordinance violation, that the rental home is now being offered at a five-night minimum and the person renting the home has to be at least 25 years old.

Noisy vacation rental home declared public nuisance
The hearing agenda references the Vacasa office in Holmes Beach. – Google Maps | Submitted

During her closing arguments, Olson said, “One of the respondents, Vacasa LLC, has actually failed to appear at today’s proceeding. They were noticed, just as Mangroves on Magnolia was. It’s important to recognize that Vacasa is the property manager of 313 Magnolia Ave. and therefore they address the day-to-day operations.”

Olson impressed upon Buhr that Vacasa’s failure to appear at the hearing or oppose the city’s actions was “extremely telling.”

She said the property owners’ recent efforts have no bearing on the noise violations that already occurred, which she noted were most ever issued for a property in Anna Maria.

Buhr declared 313 Magnolia Ave. to be a public nuisance and ordered the owners to pay the city $389 in fees and costs.

“I’ve to tell you Mr. Patel, this is pretty appalling treatment of your neighbors. I believe you should have done something after the first citation. You then received four additional citations on top of that,” Buhr said.

Noisy vacation rental home declared a public nuisance
Special Magistrate Jerry Buhr declared the vacation rental home to be a public nuisance. – Joe Hendricks | Sun

City Attorney Becky Vose said, “The next step will be in court.”

Vose declined to provide any additional details on the city’s pending legal action, but the agenda for the Thursday, May 26 city commission meeting includes an item that references litigation, a declared nuisance and noise violations at 313 Magnolia Ave.

During past noise ordinance discussions, Vose stated a rental property declared a public nuisance could result in the suspension of its city-issued vacation rental license and the loss of the right to operate as a vacation rental.

Bradenton Anna Maria Island Longboat Key

Tourism board meets Vacasa

Written by Cindy Lane on . Posted in Business, Featured, Tourism.

Updated Feb. 13, 2018

BRADENTON – A local vacation rental agent told the Manatee County Tourist Development Council (TDC) today that his company has gone international.

John Lefner, of Island Real Estate, explained that the company has sold the vacation rental portion of its business to Portland, Oregon-based Vacasa, which manages 7,000 rentals with 1,800 employees worldwide.

Vacasa’s Anna Maria Island branch will have a strong, local presence at 419 Pine Ave. in Anna Maria, important for guests who want to do business face to face, not on the Internet, Lefner said.

The Anna Maria City Commission is reviewing the Pine Avenue office’s compliance with the city’s formula retail and formula commercial establishments ordinance.

Vacasa will produce more bookings for rental owners and will have a wider reach than Island Real Estate did in the European market, Lefner said, adding that Island Real Estate will continue to offer real estate sales services in Holmes Beach.

Lefner said Vacasa is sensitive to local residents and will enforce the rules in a five-page guest agreement that covers parking, noise, quiet enjoyment and other issues.

“We want to be a good neighbor because we don’t want to kill the golden goose,” he said. “We want to keep that livability.”

Vacasa also wants to keep the Island’s quaintness, he said, adding, “They don’t want to change it, they don’t want to turn it into spring break, they don’t want to turn it into a wedding destination.”

The sale to Vacasa reflects a growing trend of real estate companies selling off their vacation rental business, which is going digital, Lefner said.

“We’re in a new learning curve when it comes to how people travel,” he said, adding that while he plans his vacations two years in advance, more and more people use their phone to book instant travel.

About 84 percent of Manatee County’s vacation rentals are condos, single-family homes, duplexes and triplexes, with about 16 percent hotels and motels, Bradenton Area Convention and Visitors Bureau Director Elliott Falcione said.

Vacation rental legislation

The TDC voted Monday to recommend that Manatee County commissioners formally oppose Florida Sen. Greg Steube’s proposed vacation rental legislation, SB 1400.

The vote came after Bharat Patel, a representative from the Asian American Hotel Owners Association, representing a large contingency of its members from about 20 hotels in Manatee County, said the bill would kill tourism jobs and harm the economy.

TDC Chair and Manatee County Commissioner Carol Whitmore said the county has opposed the bill on its 2018 legislative platform because it would replace local government regulation of vacation rentals with state regulation.

“The state is going to usurp that, and if you believe that the state will inspect these rentals for safety, I think you’re foolish,” TDC member and Anna Maria Commissioner Doug Copeland said.

“We’ve watched many investors buy homes that were owned long term because there’s so much money to be made,” he said. “It’s destroying the fabric of the Island communities.”

Tourism up in first quarter

Visitation was up in the first quarter of Manatee County’s fiscal year, October through December 2017, said Walter Klages, of Tampa-based Research Data Services, the county’s tourism consultant.

A 5.8 percent growth in visitation to 155,100 people from the same quarter the previous year is “significant,” he said, with the 9.7 percent increase in economic impact to $152 million even more significant.

While occupancy was slightly down from 65.3 percent to 64.9 percent because inventory has grown, Klages said the market absorbed most of the new inventory, all but .6 percent.

The average daily rate increased 3.4 percent to $155 a night, he said. The Florida market grew by 3.8 percent and the European market increased by 6.8 percent. Average party size stayed stable at 2.5 people per party, as did the length of stay, 6.1 days. The length of stay is desirable, Falcione said, explaining that the state average is 4 days, but at 7 days, visitors begin spending less money each day.

The couples market decreased from 58 to 54 percent, but there were increases in other markets – the family market increased from 32 to 34 percent, the single market increased from 13 to 14 percent and the extended family market grew from 9 to 10 percent.

Business travel grew from 8 to 9 percent while vacation travel decreased from 73 to 70 percent.

The average age of visitors is up from age 49 to 51, and the average income of visitors grew from $115,000 to $120,000.

Tampa International Airport is still the primary airport for tourists coming to Manatee County, with 59 percent of local visitors arriving in Tampa.

County tourism officials must pay attention to a decrease in first-time visitation from 37 to 34 percent by targeting marketing and promotions to attract first-time visitors, Klages said.

Klages predicts strong tourism growth this year in the 2.6-2.7 percent range, slightly above national projected growth, he said.

In other business:

  • Sarasota-Bradenton International Airport announced new services: Elite Airways to Portland, ME and White Plains, NY, and Allegiant Airlines to Indianapolis, IN, Cincinnati, OH and Pittsburgh, PA.
  • Manatee County Administrator Ed Hunzeker reported that negotiations have stalled on getting a hotel at the Bradenton Area Convention Center in Palmetto.
  • The TDC board met Judith Tilton, the CVB’s first Director of Cultural Affairs, who will work to promote arts and heritage organizations in the county to enhance tourism.
  • Board member and Anna Maria Island vacation rental owner David Teitelbaum was re-elected vice chair.
Island Real Estate sale

Island Real Estate sells vacation rental operation

Written by Joe Hendricks on . Posted in Business, Real estate | Development.

HOLMES BEACH – Island Real Estate owner Larry Chatt has sold the vacation rental portion of his Island Real Estate business operation to Vacasa, an Oregon-based vacation rental management company.

“Vacasa will take over operations of Island Real Estate’s vacation rentals, adding nearly 300 Florida properties to the company’s growing portfolio. All real estate sales and property and condominium management will continue to be overseen by Island Real Estate. Vacasa plans to retain Island Real Estate’s current staff,” according to a Nov. 20 press release.

“I’ve owned and operated Island Real Estate for almost a decade and each year I drive the organization to adapt and improve to the fast-changing vacation rental industry,” Chatt said in the press release. “Vacasa continues my crusade to lead advancements in the southwest Florida market that provides unmatched value to our vacation rental business, increased revenue for homeowners, world-class service for guests and industry-leading benefits for employees,” he added.

When contacted, Chatt said he will lease his blue, multi-story building in Holmes Beach to Vacasa, which will retain the use of the building as a headquarters for laundry and housekeeping operations.

“We’re thrilled to be entering into this partnership with Island Real Estate and look forward to being part of the community in Anna Maria Island,” said Gerard Lester, director of Homeowner Experience at Vacasa.

Vacasa is a full-service vacation rental property management company that utilizes algorithm-based analytics to help determine rental rates and optimize revenue for its clients.

When contacted by email last week, Lester provided additional comments on the purchase.

“Larry saw an opportunity to bring in an operational and marketing expert to help manage the vacation rental side of his business. Larry has been working closely with Vacasa’s partnership and acquisitions team and will continue to be a resource to us as we transition all of Island Real Estate’s vacation rental business operations over to Vacasa,” Lester’s email said.

Lester also provided additional insight on Vacasa’s use of analytics.

“For a long time, the vacation rental industry lacked dynamic pricing, leaving money on the table for homeowners,” Lester said of the rental rate optimization algorithm Vacasa began utilizing in 2009.

“In April, we launched Yield Management 2.0, a machine learning-driven algorithm that optimizes rental rates throughout the day by automatically adapting to a variety of factors. Yield Management 2.0 is constantly evaluating and making real-time changes to rental rates based on millions of data points such as weather forecasts, location-specific events, holidays, occupancy, competitor prices, etc. Vacasa’s technology not only benefits the homeowner by revenue optimization, but also ensures guests are getting the best rates,” Lester said.

Vacasa currently manages more than 900 vacation properties throughout the state of Florida, including homes in Sarasota and Bradenton. Founded in 2009 and based in Portland, Vacasa and its subsidiaries manage more than 7,000 vacation homes in the U.S., Europe, South Africa and Central and South America.