For California homeowners dealing with HOA rental restrictions, it can be important to review whether the restriction is authorized by the association’s governing documents and consistent with applicable California law.
HOA attorneys in California can assist homeowners in evaluating and disputing rental restrictions that may be unlawful or improperly applied.

Common Types of HOA Rental Restrictions

HOAs regulate rentals through their governing documents, including the Covenants, Conditions, and Restrictions (CC&Rs) and bylaws. The most common rental restrictions include:
Total Rental Bans: Some HOAs prohibit rentals, requiring homeowners to reside in their properties. Whether a rental prohibition is enforceable can depend on the governing documents and when the restriction was adopted.
Lease Term Requirements: Many HOAs require minimum lease terms, such as 30 days, 6 months, or 1 year, to discourage short-term or vacation rentals.
Rental Cap Limitations: Some associations limit the number of units that can be rented at any given time.
Tenant Screening and Approval: Some HOAs request tenant information or attempt to regulate the leasing process; restrictions that function as “approval” requirements may raise legal and fair housing concerns depending on how they are written and enforced.
Occupancy Limits: Some HOAs regulate the number of occupants allowed in a home, including rules that may affect unrelated individuals living together; such rules may also implicate fair housing considerations.
If you believe your HOA is imposing restrictions beyond its legal authority, you may want to review the governing documents and applicable California law.

Are HOA Rental Restrictions Enforceable?

While associations often have authority to regulate rentals through properly adopted governing documents, that authority is not unlimited. Rental restrictions may be unenforceable or subject to challenge if they:
Conflict with State Law: In California, the Davis-Stirling Common Interest Development Act includes provisions that may limit how certain rental restrictions can be applied.
Were Not Properly Adopted: Rental restrictions generally must follow the amendment procedures in the governing documents and applicable statutes, which may include a membership vote.
Are Retroactively Applied: In some circumstances, a rental restriction adopted after an owner purchases may not be enforceable against that owner (for example, Civil Code section 4740), subject to the specific facts and governing document language.
Are Discriminatory or Selectively Enforced: HOAs generally may not enforce restrictions in a manner that violates fair housing laws or applies rules inconsistently.
A California HOA attorney can help evaluate whether a particular rental restriction is likely to be legally enforceable.

Selective Enforcement of Lease Restrictions

HOAs are generally expected to apply their restrictions consistently. “Selective enforcement” issues can arise when an HOA allows some property owners to rent their homes while taking enforcement action against others under similar circumstances. Disputes over inconsistent enforcement can sometimes become a defense or issue in a contested enforcement matter.
Examples of selective enforcement include:
Allowing some homeowners to lease their homes while denying others under similar conditions.
Enforcing lease restrictions against individual homeowners but not against board members or HOA-favored residents.
Granting exceptions to certain property managers or investors but enforcing the rules against resident homeowners.
If you believe your HOA is enforcing restrictions inconsistently, documenting the facts and reviewing the governing documents and applicable law may be helpful.

How Rental Restrictions Impact Property Values

Rental restrictions can affect property values, for better or worse, depending on the market and the community. Common impacts may include:
Reduced Marketability: Stricter lease restrictions can limit the pool of potential buyers, including investors.
Increased Stability: Limits on short-term rentals may be viewed by some buyers as promoting a quieter community.
Decreased Demand: If an HOA prohibits most rentals, some properties may be less attractive to buyers who want flexibility.

Legal Issues with HOA Enforcement Actions

HOAs often have authority to take enforcement actions against homeowners who violate properly adopted lease restrictions, but enforcement must comply with the governing documents and California law. Disputes may arise when enforcement involves:
Fines for renting out a home where the underlying restriction is disputed or potentially unenforceable.
Collection or enforcement measures that exceed what is permitted under California law (for example, attempting to use lien/foreclosure procedures for amounts that are not collectible that way).
Board decisions made without following required procedures in the governing documents or applicable statutes.

When Can an HOA Amend Lease Restrictions?

Homeowner associations may amend lease restrictions, but they generally must follow the procedures required by the governing documents and California law. In some situations, amendments that impose stricter rental limits may not apply to owners who purchased before the change, depending on the facts, the language of the amendment, and statutes such as Civil Code section 4740. Key considerations include:
Voting Requirements: Under California law and most governing documents, certain amendments require membership approval and must meet specific voting and recording requirements.
Grandfathering Clauses: Some amendments include “grandfathering” language, and California law may limit the enforceability of certain rental restrictions against pre-existing owners.
State-Specific Laws: In California, HOAs must comply with the Davis-Stirling Act and other applicable laws regulating rental restrictions and enforcement.

How to Challenge Unfair Rental Restrictions

If you are facing disputed or potentially unreasonable rental restrictions, steps that are commonly considered include:
Review Governing Documents: Analyze your CC&Rs, bylaws, and HOA rules to confirm what the restriction says and how it was adopted.
Request Written Clarification: Ask the HOA for written clarification of the restriction being enforced and the basis for the decision.
Consult an Attorney: A California HOA attorney can evaluate whether the restriction and enforcement approach are consistent with state law and the governing documents.
Explore Resolution Options: Depending on the situation, owners and associations may use internal dispute resolution, alternative dispute resolution, or court processes.

HOA Rental Restriction Disputes in California

If you are involved in association disputes over rental restrictions, speaking with a California attorney familiar with HOA law may help you better understand the rules at issue and the dispute-resolution options that may be available.