Whether it is a short-term rental dispute, tenant screening issue, or lease term requirement, many homeowners question whether their HOA has the legal authority to issue penalties for how they rent their property.
If you are dealing with fines or disputes over rental restrictions, reviewing the association’s governing documents and the Davis-Stirling Common Interest Development Act may help you evaluate whether a particular fine is enforceable.

Does an HOA Have the Power to Fine Homeowners Over Rentals?

While HOAs can adopt and enforce rules that affect rentals, that authority is not unlimited. California law and an HOA’s governing documents generally determine whether a rental-related fine is permitted and whether it was imposed properly.
Examining HOA Bylaws and Regulations: The HOA’s Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and operating rules should describe any rental restrictions and the association’s authority to impose monetary penalties.
Compliance with California Law: In California, HOA enforcement (including monetary penalties) must comply with applicable provisions of the Davis-Stirling Act and other laws, and associations generally may not impose penalties beyond what their governing documents and California law allow.
Required Procedures for Issuing Fines: California HOAs must generally follow required procedures before imposing a monetary penalty, including providing written notice and an opportunity to be heard (see, e.g., California Civil Code sections 5850–5855).

Common Reasons HOAs Penalize Homeowners for Rentals

HOAs impose fines for a variety of leasing-related issues. The most common violations that result in fines include:
Unauthorized Short-Term Rentals: Many HOAs restrict or prohibit homeowners from using Airbnb, VRBO, or similar services.
Failure to Submit Tenant Information: Some HOAs require owners to provide tenant-related information or forms before or after leasing, consistent with the governing documents and applicable law.
Exceeding Maximum Occupancy Rules: HOAs may adopt occupancy-related rules, though enforceability can depend on the governing documents and applicable law.
Leasing Without Required Documentation: Some associations require certain lease provisions or require owners to provide a copy of the lease or other documentation.
Violating Rental Cap Limits: Homeowners who lease their property beyond the HOA’s established rental percentage limit may face penalties, depending on the CC&Rs and applicable California law.

Can Homeowners Challenge Rental Fines from Their HOA?

Not all HOA-imposed rental fines are enforceable. Homeowners may be able to contest fines if the association:
Fails to Follow the Proper Legal Process: California HOAs generally must provide adequate notice and an opportunity for a hearing before imposing monetary penalties.
Issues Rules That Conflict with California Law: Rental restrictions or enforcement practices that conflict with applicable law may be unenforceable.
Applies Fines Inconsistently: Inconsistent enforcement can raise concerns and may affect whether a particular enforcement action is appropriate or enforceable.
Lacks the Authority to Enforce the Fine: Some HOA governing documents may not authorize certain rental fines or may limit how penalties can be imposed.

Special Assessments and Rental Restrictions: What Homeowners Need to Know

In addition to fines for rental violations, some Homeowner Associations attempt to impose assessments or charges that are tied to rental activity.
These charges may be described as covering additional costs the HOA claims are associated with rental properties, such as increased maintenance or security concerns.
However, not all assessments or charges are permitted, and whether they are enforceable typically depends on the association’s governing documents and California law.
Legitimate vs. Potentially Improper Assessments – In California, associations must follow statutory and governing-document requirements when imposing assessments and generally must levy them in accordance with the allocation method in the CC&Rs.
Equal Treatment of Homeowners – Association rules and enforcement should be applied consistently to members, and targeted charges may raise legal issues depending on how they are structured and justified.
Challenging Unreasonable Charges – If an individual homeowner believes a charge is not authorized or is otherwise improper, it may be helpful to review the governing documents and applicable provisions of California law.

How to Dispute an HOA Fine for Rental Violations

If your HOA has issued a fine for violating rental restrictions, here are the key steps to take:
Request a Detailed Explanation from the HOA: Obtain a formal notice outlining the rule violation and fine amount.
Check the HOA’s Governing Documents: Review the CC&Rs and bylaws to confirm whether the rule and penalty process were properly adopted and described.
Request a Hearing as Provided by the HOA’s Procedures: Homeowners often have the ability to request a hearing with the board (or a designated committee) before a monetary penalty is imposed.
Consider Getting Legal Information: An attorney can help explain how California law and the governing documents may apply to a particular situation.
Consider Available Dispute-Resolution Options if Needed: Depending on the issue, this may include internal dispute resolution, alternative dispute resolution, or court proceedings.

Why Homeowners May Seek Legal Information for Rental Disputes

If an HOA is imposing fines related to rental restrictions, some homeowners choose to consult an attorney to better understand their rights and obligations under California law. Depending on the circumstances, an attorney may be able to:
Evaluate whether a fine appears authorized under the governing documents and consistent with California law.
Communicate with the HOA regarding disputed enforcement actions.
Assist a homeowner in preparing for a hearing or dispute-resolution process.
Explain potential legal options and risks based on the specific facts.

When to Consider Legal Guidance About Rental Fines

If your HOA is imposing fines or charges related to rental activities, it may be helpful to seek legal information to better understand the governing documents, the association’s procedures, and how California law may apply to your situation.