Understanding how a California HOA can impact rental income can be important, particularly when evaluating whether rental-related rules and fees are consistent with the HOA’s governing documents and California law.
If you believe your HOA is interfering with your ability to rent your property, some homeowners choose to speak with a California HOA attorney to better understand their options and the potential enforceability of the HOA’s restrictions.
At LS Carlson Law, our homeowners association dispute lawyers represent clients in California HOA disputes involving rental restrictions, fee disputes, and enforcement issues.

Ways HOA Rental Policies Can Reduce Your Rental Income

Many HOAs impose rental restrictions that can affect how much a homeowner can earn from leasing their property. Common limitations include:
Short-Term Rental Bans: Many associations prohibit rentals of fewer than 30 days, which can limit the use of platforms like Airbnb or VRBO.
Rental Caps and Waiting Lists: Some HOAs limit the percentage of units that can be rented at a time, which may require owners to wait before leasing their property.
Tenant Screening Requirements: Some associations require certain information about tenants or impose lease-related requirements, which can delay the leasing process.
Fee Increases for Rental Properties: Certain HOAs impose higher dues, special assessments, or rental-related fees on homeowners who lease their properties, which can reduce overall profitability.
Restrictions on Corporate Leases or Subleasing: Some associations restrict leasing to corporate tenants or limit subleasing, which can reduce flexibility in rental agreements.
If your HOA’s rules are affecting your rental income, a California attorney can review whether the restrictions are authorized by the governing documents and are likely enforceable under California law.

Can an HOA Impose Additional Fees on Rental Properties?

HOAs sometimes justify increased fees for rental properties by claiming they require more maintenance, security, or administrative oversight. Whether a particular fee is permitted can depend on the governing documents, how the fee is imposed, and whether it is consistent with the Davis-Stirling Act and other applicable law.
Special Assessments for Landlords: Some HOAs attempt to impose charges that apply only to rental properties, even though all homeowners may benefit from the same community services.
Higher Monthly Dues for Non-Owner Occupants: Some associations attempt to charge different amounts based on owner-occupancy status.
Tenant Move-In or Background Check Fees: Some HOAs charge additional fees for processing lease-related paperwork.
If you are being unfairly targeted with extra fees, an attorney can help evaluate how the charges were adopted and whether they are authorized.

HOA Rules That Can Lead to Financial Losses for Rental Owners

Even if an HOA does not directly restrict rentals, certain rule enforcement practices can create financial challenges for rental owners. These may include:
Failure to Maintain Common Areas: If the HOA neglects landscaping, security, or amenities, it can lower tenant demand and make it harder for homeowners to charge competitive rents.
Unfair Lease Restrictions: Some associations impose lease term limits or renewal conditions that may affect a landlord’s ability to secure long-term tenants.
Disruptive Rule Changes: If an HOA adopts or begins enforcing new rental restrictions, existing lease agreements may be affected, depending on timing and the applicable California rules on rental restrictions.
Targeting Rental Property Owners: Some HOAs enforce rules more strictly against rental property owners than against owner-occupied homes.
If your rental business is being affected by HOA actions, a California HOA attorney can help review the circumstances and discuss potential dispute-resolution options.

Can Homeowners Take Legal Action Against an HOA for Lost Rental Income?

If an HOA’s actions have led to financial losses, homeowners sometimes consider legal action regarding issues such as alleged improper restrictions, fines, or selective enforcement. Potential claims in California may involve:
Breach of Governing Documents: If an HOA fails to follow its CC&Rs or bylaws, disputes may arise regarding compliance and available remedies.
Discriminatory Practices: If rental rules are enforced in a manner that raises fair housing concerns, the situation may warrant further review.
Failure to Follow Proper Procedures: If an HOA changes rental policies without following required procedures, the enforceability of the new rules may be challenged.
An attorney can help assess the facts and explain how California’s dispute-resolution requirements and court procedures may apply.

What Homeowners Can Do to Protect Their Rental Rights

If your HOA is negatively affecting your ability to rent your property, homeowners often consider steps such as:
Review the HOA’s Governing Documents: Confirm what the CC&Rs, bylaws, and rules actually say about leasing, fees, and enforcement.
Request Clarification from the HOA Board: If a rule is vague or inconsistently enforced, ask for written clarification.
Consult with a California HOA Attorney: An attorney can review the documents and explain how California law may apply to the situation.
Challenge Unfair Fees or Policies: Depending on the circumstances, dispute resolution or other formal processes may be available.

Alternative Dispute Resolution for Rental Conflicts with HOAs

Rental disputes between homeowners and HOAs can escalate into contractual disputes, fines, or legal actions. However, not all conflicts require litigation. In California, there are statutory dispute-resolution processes that may apply to common interest development disputes, and many homeowners use alternative dispute resolution (ADR) methods, such as:
Mediation: A neutral third-party mediator helps both sides negotiate a resolution.
Arbitration: In some situations, arbitration may be used as an alternative to a lawsuit.
Negotiation with HOA Leadership: Communicating concerns in writing or through counsel may help resolve disputes.
If you are involved in contractual disputes or rental conflicts with your HOA, it may be helpful to learn about internal dispute resolution and ADR options that can apply under California law.

Consult with an HOA Attorney for Legal Guidance on Rental Issues

If your homeowners association is limiting your ability to earn rental income, it may be helpful to review the governing documents and applicable California statutes before taking action. Homeowners sometimes consult an attorney to better understand whether rental restrictions, fees, or enforcement practices are likely enforceable and what dispute-resolution processes may apply.