Can an HOA Prevent You From Renting Your Home

Are you considering renting out your home but worried about the restrictions imposed by your Homeowners’ Association (HOA)? You’re not alone. Many homeowners find themselves in a similar situation, unsure of their rights and options.

Let’s discuss the world of HOAs and what rules they can impose upon owners.

We will address questions like can an HOA prevent you from renting your home? 

Or can I turn my house into an Airbnb? Many of your neighbors probably don’t want you turning your place into vacation rentals.

• What forms of rental restrictions can an association adopt?
• Can associations screen prospective tenants?
• And much more. You will have a clear understanding of the legalities surrounding HOA rental restrictions and why they matter.

So, let’s get started and discover how to navigate the complex world of HOAs when it comes to renting your home.

What is an HOA

HOA, also known as a Homeowners Association, possesses the authority to regulate rental activity within their communities. 

HOAs are most common in the South (25.6%) and West (24.8%) regions of the US.

Homeowners are often required to obtain permission or approval from the HOA before renting out their homes.

Furthermore, these associations may impose restrictions on the number of rental units permissible within the community.

Therefore, it becomes paramount for homeowners to thoroughly review their HOA’s governing documents and bylaws to understand any rental restrictions.

Effectively communicating with the HOA and adhering to the necessary procedures for members to consider when contemplating the rental of their home.

Can an HOA restrict a member’s right to rent his or her property

Yes, it is within the rights of an HOA to place restrictions on a member’s ability to rent out their property. 

For example, the average HOA rental restriction policy allows for no more than 10-20% of the total units in the community to be rented

These are often outlined in the HOA’s bylaws or governing documents and may include limitations on the number of rentals permitted or require approval from the HOA board.

Carefully review the HOA’s rules and regulations before proceeding with renting your property.

What forms of rental restrictions can an association adopt

Approximately 70% of HOAs have a rental restriction policy.

An association can impose rental restrictions like limiting the number of rentals in the community and setting requirements on lease duration.

They may also ask for rental applications and conduct background checks. To know the exact rules, review the association’s governing documents.

Can an association screen prospective tenants

Yes, an HOA has the authority to screen prospective tenants. This may include background checks, credit checks, and reference checks.

The association may have specific criteria or restrictions regarding renting within the community. The screening process helps uphold the community’s standards and integrity.

Do associations have to disclose restrictions

Associations are usually obligated to inform homeowners about rental restrictions.

They are typically outlined in the association’s governing documents, such as the bylaws or covenants. Homeowners must thoroughly review these documents before buying a home in an HOA community.

If they are not disclosed, homeowners may have legal options to contest them.

Who can be a board member

An HOA board member is typically a homeowner within the association’s community.

The exact qualifications to be an HOA board member can vary according to the association’s bylaws.

• Ownership: Candidates must usually be homeowners in the community represented by the HOA.
•  Good standing: Candidates are generally required to be in good financial standing with the HOA. This means they should not owe any outstanding dues or fees.
• Resident: Some HOAs require board members to reside in the community.
• Legal Age: This is usually a requirement, and the person should have legal capacity to enter into a contract.

Contractual and Statutory Protections

Reviewing the governing documents and bylaws when it comes to evaluating anything imposed by an HOA.

Here is an example of HOA rules. 

These documents set out any limitations on renting a home within the community. Comprehend the legal rights and protections offered to homeowners under state and local laws.

Seeking advice from a real estate attorney specializing in HOA matters can provide valuable insights into the enforceability of rules and potential avenues for negotiation.

Homeowners may explore the possibility of amending the governing documents to allow for rental options, such as long-term leasing or renting out specific sections of their property that are not subject to HOA restrictions.

How does an association enforce anything 

Associations enforce rental restrictions by implementing fines or legal measures, requiring proof of occupancy and updated information from homeowners.

Regular inspections and property management companies may be utilized. These efforts preserve community integrity and safeguard property values.

Discover More

In order to gain a comprehensive understanding of HOA rental restrictions, grasp the role of HOAs and their authority over rental properties.

By thoroughly reviewing your HOA’s governing documents, you can identify anything that may be applicable to you.

Additionally, exploring potential workarounds or alternative solutions can help you navigate them.

Are HOA Laws Enforceable

Yes, HOA rental restrictions are typically legal and enforceable, but their validity may differ based on state laws.

Homeowners who violate them may face penalties from the HOA.

It’s important to consult an attorney and review the governing documents to understand the enforceability before renting your home.

What happens if I don’t comply with the HOA’s rules and regulations

Violating HOA rules can have serious consequences for homeowners who attempt to rent out their properties against the restrictions set by the association. 

If you don’t comply with the Home Owner’s Association (HOA) rules and regulations, the HOA can take action against you.

This could involve issuing a warning, imposing a fine, or taking legal action.

Depending on the violation, charges and additional fines can stack up if the action is not addressed right away.

The specific consequences may vary depending on the HOA’s governing documents and local laws, there may even be the possibility of losing the ability to use or occupy the property.

For example, repeated violations of rental restrictions could result in revocation of HOA privileges, such as access to amenities or voting rights within the community

Did you know that not paying your dues is a clear violation and will result in fees and even evictions. 

Why HOA Rental Restrictions Matter

HOA rental restrictions matter because they can greatly impact your ability to generate income from renting out your home.

These are outlined in the HOA’s governing documents (CC&R), can place limitations on both the number of rental units within the community and the ability to rent out your property.

This means that even if you have a property that would make for a lucrative rental opportunity, you may be prevented from doing so due to rental caps or other restrictions imposed by the HOA. 

Furthermore, these restrictions are in place to preserve property values and maintain the overall quality of life within the community.

By limiting rentals, the HOA aims to uphold a certain aesthetic and ensure homeowners’ enjoyment of a peaceful environment.

Types of Restrictions in an HOA

Rental restrictions in an HOA can take various forms, affecting homeowners who intend to rent out their properties.

 These restrictions are typically stated in the HOA’s governing documents, such as the covenants, conditions, and restrictions (CC&Rs) or bylaws.

• One prevalent type of rental restriction is lease restrictions, which govern the length of leases or mandate approval before signing.
• Another common limitation involves occupancy, where the HOA imposes rules on the number of occupants allowed in rental units.

• HOAs may also enforce rental caps, restricting the percentage of units available for rent at any given time.
• Parking is also an issue at many communities. Residents may only have access to a limited number of spaces for their vehicles, and must park in their garage. 

Final Thoughts

While HOAs do have the authority to impose rental restrictions, it is important to carefully review the governing documents and bylaws of your specific association to understand the extent of these restrictions. Be aware of any limitations on renting your property before making a decision.

Have rental tenants and want to sell your house fast, we can help. 

Additionally, familiarize yourself with the contractual and statutory protections available to you as a homeowner.