Heard a Karen story today

[deemus]

Was talking to a friend today who told me a Karen story.

Guy shows up to Karen's apartment in the Houston area. He tried to enter so she asked whats up. "Sorry, I rented an apartment from (insert organization here) and I forgot the number." She inquired further about that. Found out that a legal entity can rent a unit and sublease it out. Found out somehow the lessor of the unit. She dug further and felt that the entity was likely not paying hotel tax, so she turned them in to the state tax office.

Some people have too much time on their hands.

 

[Texasjack]

In grade school, there was always that one person - usually a girl - that when the teacher would say, "Well, looks like nobody got their homework completed", she'd raise her hand and say, "I got mine done, teacher!" In my youth, that girl actually was named, "Karen".

 

[pronstar]

I can’t imagine investing that much time for a random knock on the door…


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[dapakattack]

I can’t imagine investing that much time for a random knock on the door…


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Too much leisure time is part of the reason we are in the mess we find ourselves in as a society/nation.

 

[Sam7sf]

Was she hot?

 

[Axxe55]

I married to a Karen, but she doesn't act like a Karen!

 

[deemus]

I can’t imagine investing that much time for a random knock on the door…


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No joke. What turd to pull all that. She needs a hobby.

Was she hot?

Simon says, "hahahahahaha, hell no..,..."

 

[Grumps21]

No joke. What turd to pull all that. She needs a hobby.




Simon says, "hahahahahaha, hell no..,..."

Probably just needs to get a boyfriend....

 

[Colonel]

Probably just needs to get a boyfriend....

Karens aren’t worthy

 

[Renegade]

In for when we find out the actual property owner is the one responsible for any additional taxes.

 

[Eli]

Was talking to a friend today who told me a Karen story.

Guy shows up to Karen's apartment in the Houston area. He tried to enter so she asked whats up. "Sorry, I rented an apartment from (insert organization here) and I forgot the number." She inquired further about that. Found out that a legal entity can rent a unit and sublease it out. Found out somehow the lessor of the unit. She dug further and felt that the entity was likely not paying hotel tax, so she turned them in to the state tax office.

Some people have too much time on their hands.

Residential leases usually prohibited subleases.
It's worth noting the State of Texas has at least 3 different legal definitions of what is and is not a Hotel!
OCCUPATIONS CODE
TITLE 13. SPORTS, AMUSEMENTS, AND ENTERTAINMENT
SUBTITLE D. OTHER AMUSEMENTS AND ENTERTAINMENT
CHAPTER 2155. HOTELS AND BOARDINGHOUSES

DEFINITION. In this subchapter, "hotel" means a business, including an inn or rooming house, that furnishes food, lodging, or both food and lodging to a person applying and paying for the service.

HEALTH AND SAFETY CODE
TITLE 9. SAFETY
SUBTITLE C. FIRE
CHAPTER 792. SMOKE DETECTORS IN HOTELS

Sec. 792.001. DEFINITIONS. In this chapter:

(1) "Hotel" means a building in which members of the public obtain sleeping accommodations for consideration, including a hotel, motel, tourist home, tourist house, tourist court, hostel, lodging house, rooming house, or inn. The term does not include:

(A) a hospital, sanitarium, or nursing home; or

(B) a building in which all or substantially all of the occupants have the right to use or possess their sleeping accommodations for at least 28 consecutive days.

(2) "Person" has the meaning assigned by Section 1.07, Penal Code.

(3) "Smoke detector" means a device that is:

(A) designed to detect the presence of visible or invisible products of combustion in the air; and

(B) designed with an alarm audible throughout the room in which it is installed to alert the occupants of the room of the presence of visible or invisible products of combustion in the air of the room.

(4) "Smoke detector for hearing-impaired persons" means a smoke detector that, in addition to the sound alarm, uses a xenon design strobe light with a visible effective intensity of not less than 100 candela, as tested and labeled in accordance with ANSI/UL Standard 1638, and with a flash rate of not less than 60 nor more than 120 flashes per minute.

And, the section applicable here:
TAX CODE
TITLE 2. STATE TAXATION
SUBTITLE E. SALES, EXCISE, AND USE TAXES
CHAPTER 156. HOTEL OCCUPANCY TAX
SUBCHAPTER A. DEFINITIONS

Sec. 156.001. DEFINITIONS. (a) In this chapter, "hotel" means a building in which members of the public obtain sleeping accommodations for consideration. The term includes a hotel, motel, tourist home, tourist house, tourist court, lodging house, inn, rooming house, or bed and breakfast. The term does not include:

(1) a hospital, sanitarium, or nursing home;

(2) a dormitory or other housing facility owned or leased and operated by an institution of higher education or a private or independent institution of higher education as those terms are defined by Section 61.003, Education Code, used by the institution for the purpose of providing sleeping accommodations for persons engaged in an educational program or activity at the institution; or

(3) an oilfield portable unit, as defined by Section 152.001.

(b) For purposes of the imposition of a hotel occupancy tax under this chapter, Chapter 351 or 352, or other law, "hotel" includes a short-term rental. In this subsection, "short-term rental" means the rental of all or part of a residential property to a person who is not a permanent resident under Section 156.101.

Eli

 

[deemus]

It’s not uncommon for large companies to have an apartment for out of town employees or contractors to stay in for a week plus. Sounds like it may have been that situation. And they just decided instead to book short term stays via Airbnb or one of those, when it was not used by the company.

It’s actually a good business strategy. I found it ridiculous that Karen 1-cared in any way what was going on; 2-decided it was worthy of her time to investigate enough to find the name of the company, then call the state to narc on them; 3-assumed the worst that they were not paying occupancy tax on those rare days they rented it out.

FYI, some of those rentals get tax collected by Airbnb, etc so the owners don’t have to.

 

[Eli]

Oddly enough, a Realtor group I'm in also had a thread about this same subject yesterday. Seems it's one of the latest 'Real Estate Investment' schemes (scams), renting 'corporate housing' from unsuspecting landlords and using it for short-term rentals.
Great, more for landlords to worry about, as if the meth labs, grow ops, and regular deadbeat tenants and squatters weren't enough!

Eli

 

[deemus]

I think the original beef was that an individual cannot sublease, but the corporations / LLCs can sublease. So she wanted to make sure they "paid" in some fashion. But the subleasing the LLCs are doing is short term stuff.

 

[1911'S 4 Me]

Doesn't concern me, so I don't care.

 

[Eli]

I think the original beef was that an individual cannot sublease, but the corporations / LLCs can sublease.

They can't - it's the same lease forms, at least it is in my experience.

My guess is these 'corporate' guys are intentionally misinterpreting this rule.

Eli