Homeowners often invest in properties with the intent to rent them out, whether for long-term tenants or short-term vacation stays. However, Homeowners Associations (HOAs) frequently enforce rules that can limit or even prohibit renting within the community.

This raises an important legal question: Do HOAs have the authority to regulate rental properties, and what are a homeowner's rights in these situations?

If you’re facing restrictions on renting your home due to HOA rules, it can be helpful to review the association’s governing documents and the California laws that apply to common interest developments.

HOA Rental Restrictions

HOAs set and enforce Covenants, Conditions, and Restrictions (CC&Rs) that homeowners must follow. Rental restrictions typically fall into the following categories:

Total Rental Bans: Some HOAs prohibit homeowners from renting their properties entirely (subject to applicable California law and the governing documents).
Lease Term Minimums: Many HOAs restrict short-term rentals. In California, associations generally may not prohibit rentals of 30 days or longer, although restrictions on rentals shorter than 30 days may be permitted in many communities.
Approval Requirements: Some HOAs require certain notices or documentation before a unit is rented. Any screening or approval process should be consistent with the governing documents and applicable law.
Occupancy Limits: Some associations impose limits on the number of occupants, which may need to be reasonable and consistent with fair housing laws.

While HOAs do have authority to regulate rentals, that authority is not unlimited and can depend on how the restriction was adopted and applied.

When Are HOA Rental Restrictions Illegal?

In some cases, HOA rules that restrict rentals may conflict with California law or be unenforceable as written or applied. Examples include:

Retrofitting New Restrictions: California law can limit whether certain rental restrictions adopted after an owner purchased may be enforced against that owner, depending on the type of restriction and the circumstances.
Selective Enforcement: Unequal enforcement can raise concerns about inconsistent application of the rules and, in some situations, may also implicate fair housing requirements.
Violation of State Laws: California statutes (including provisions of the Davis-Stirling Act) and fair housing laws may limit or affect how rental restrictions can be adopted and enforced.

If you believe your HOA is unlawfully interfering with your right to rent your property, reviewing the applicable governing documents and California law may help clarify what rules apply.

How to Challenge an HOA’s Rental Restriction

If you feel that your HOA’s rules are unfairly restricting your ability to rent your property, here are some options that may be available depending on the circumstances:

Review the Governing Documents: CC&Rs, bylaws, rules, and relevant California statutes often determine whether a restriction is enforceable.
Communicate with the HOA: In some cases, owners resolve disputes by requesting clarification, providing documentation, or using the association’s internal dispute resolution process.
Court Proceedings: Depending on the dispute, litigation or a request for declaratory relief may be an available avenue to challenge or clarify whether a restriction is enforceable.
Seek a Declaratory Judgment: A court can issue a ruling addressing whether specific restrictions are enforceable in a given dispute.

Can an HOA Change Rental Rules After You Buy a Home?

One of the most contentious HOA-specific disputes occurs when an HOA changes the rental policy after a homeowner has purchased a property.

Grandfathering Issues: Some owners may be protected from certain later-adopted rental restrictions under California law, depending on the type of restriction and the timing.
Improper Voting Procedures: The process for changing rental-related provisions depends on whether the association is amending CC&Rs (which typically requires a membership vote and recordation) or adopting or changing operating rules (which must follow statutory notice and adoption procedures).
Legal Action Against Retroactive Rules: In some situations, owners may challenge enforcement if a restriction was not properly adopted or is otherwise unenforceable.

How to Fight HOA Fines Related to Rental Violations

HOAs often impose fines on individual homeowners for alleged rental violations. Whether a fine is enforceable can depend on the governing documents, the association’s fine schedule, and whether the association followed required notice and hearing procedures.

Check the Governing Documents: The CC&Rs and the association’s enforcement policy typically address what violations may be fined and in what amounts.
Challenging HOA Fines at Board Meetings: Owners generally have a right to notice and an opportunity to be heard before discipline is imposed.
Dispute Resolution Options: Depending on the issue, internal dispute resolution, alternative dispute resolution, or court proceedings may be available to contest a fine.

The Role of Property Management Companies in HOA Rental Rules

Many HOAs work with property management companies to implement and administer rental-related policies. Property managers typically act as agents for the association and are generally expected to follow the governing documents and applicable law.

Overreach Issues: Disputes can arise if a manager attempts to impose requirements or fees that are not authorized by the governing documents or properly adopted rules.
Lack of Legal Authority: A property management company generally should not enforce new rental rules unless the HOA has lawfully adopted them.
Unlawful Tenant Screening: If a tenant is denied or treated differently based on a protected characteristic (such as race, familial status, or disability), it may raise concerns under federal and California fair housing laws.

If you believe a property management company is enforcing illegal HOA rules, documenting what occurred and reviewing the governing documents and applicable law can be a useful starting point.

The Impact of Rental Restrictions on Property Values

Restrictive rental policies may affect marketability for some buyers and can influence a community’s desirability.

Decreased Buyer Interest: Some investors and buyers may avoid homes with significant rental restrictions.
Disputes About Restrictions: Homeowners sometimes challenge rental restrictions they believe are improper or unlawfully adopted.
Understanding the Rules: Reviewing the association’s documents and California law can help owners understand how rental policies may affect use and resale.

Speak with an HOA Attorney Today!

Understanding your rights and obligations as a homeowner is important when dealing with HOA rental restrictions. This article is for general informational purposes only and does not constitute legal advice.

For additional background information, see: HOA disputes.