Short-term rental operator sues Mondrian South Beach condo association

Mondrian South Beach and Jack Melki (via Facebook)
Mondrian South Beach and Jack Melki (via Facebook)

A short-term rental operator has filed suit against the condo association at the Mondrian South Beach after it was allegedly blocked from renting out units on behalf of owners. 

Miami World Rental LLC and Mondrian 1026 LLC filed the lawsuit in Miami-Dade County Circuit Court in mid-July against 1100 West Condominium Association Inc.

Miami World Rental, led by Jack Melki, is seeking to have its renting privileges reinstated on behalf of unit owners after the condo association terminated the privileges. Short-term rentals are defined as less than six months.

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On June 1, the association approved Miami World Rental to act as the rental agent on behalf of unit owners at the Mondrian South Beach after following the required conditions for a rental agency, according to the lawsuit. On July 6, the condo association denied the application claiming that it was violating the association’s rules and regulations, but did not specify which rules Miami World had broken.

On June 10, Menin Hospitality took over management of the Mondrian South Beach, the 335-key bayfront condo hotel. Menin, which helped develop the property in 2008, entered into a licensing agreement to run the hotel under the same name, taking over a role previously held by Morgans Hotel Group, Menin’s managing principal Jared Galbut told The Real Deal at the time.

According to an amendment to the condo docs included in the lawsuit: “leases of residential units for a term of less than six months or for transient and/or hotel rentals are permitted only if they have been arranged by a rental agency or management company” which followed a series of conditions. Abraham Galbut, president of 1100 West Properties LLC, signed the amendment effective July 16, 2014. Galbut, a senior partner at Galbut Walters & Associations, could not be reached for comment last week.

To date, the rental agency has been banned from conducting business at the Mondrian South Beach, according to the suit.