What must private clubs demonstrate to restrict rental or occupancy of their units?

Private clubs must demonstrate a preference for members only in order to restrict rental or occupancy of their units. This means that the primary purpose of the club is to serve its members, and any restrictions on who can rent or occupy the club's facilities are justified by the need to maintain the exclusive nature of the membership experience. This exclusivity is a hallmark of private clubs, setting them apart from public accommodations, which are required to serve the general public without such restrictions.

When a club establishes its operations around the concept of member exclusivity, it can legally enforce rules that limit access to non-members. This is essential for maintaining the character and expectations of private organizations, ensuring that privileges and amenities are reserved solely for members. Therefore, the focus on members reinforces the private nature of the club, distinguishing it from other types of real estate or lodging accommodations.