HOA Trying to Stop You From Renting Your Home?
They May Not Have That Power.
HOAs increasingly try to ban or restrict rentals to protect "community character." But the law in many states strictly limits an HOA's ability to restrict an owner's right to lease their own property.
The Translation
“You rented your home without HOA approval, or the rental violates our cap on the number of rentals in the community. Stop renting or pay fines.”
That a valid, enforceable rental restriction exists in the CC&Rs, that it was properly adopted, and that it does not conflict with state laws protecting an owner's right to lease.
Top 3 Procedural Loopholes
Retroactive Rental Bans Are Often Unenforceable
If you purchased your home with the right to rent it, and the HOA later voted to restrict rentals, many states prohibit applying that new restriction to existing owners. You may be grandfathered under the rules that existed when you bought.
The "Reasonable Restriction" Standard
Courts in many states have ruled that HOA rental restrictions must be "reasonable." A complete ban on all rentals has been struck down in several jurisdictions as an unreasonable restraint on the alienation of property.
Approval Process Failures
If the HOA requires rental approval, they must have a defined, objective process for granting or denying it. If they denied your rental application without a stated reason, or failed to respond within the required timeframe, the denial is often void.
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