Legal Question in Real Estate Law in California
HOA Restriction for Owners to Rent
Can an HOA's CC&R's really restrict a condo owner from renting their property? Our association says that only 25% of our units can be rentals at any one time. If this limit has been met, can they really prevent me from renting the property that I own?
2 Answers from Attorneys
Re: HOA Restriction for Owners to Rent
The restriction is understandable. The thinking behind it might be that tenants don't usually take as much care of the property (or care about their neighbors) as do owners. If the CC&Rs were in place at the time of purchase, they are enforceable. However, the owner might request a waiver or actually look behind the statistics to see which units are truly rented. If the CC&Rs don't allow for a rotating rental list, though, one might argue that it unfairly deprives you of income or property use. What I'm suggesting is, when a rental becomes vacant, then they should look on the list to you to be able to rent and remove the other property from the rental list. (That's my bias, anyway.) Perhaps others will chime in on this issue.
Re: HOA Restriction for Owners to Rent
Yes. The HOA can sue to enjoin you from renting or they can hold a meeting and assess fines and fees to cover the costs of excess trash, utility usage, cleanup and maintenance. You will be responsible for paying the added association fees.
The limit of 25% is odd, because if you have say 15 units in your building, 25% is 3.75. It's stupid to restrict an owner to renting only 75% of their unit. If your 25% does not already work out to a whole number, the CC&Rs should be amended. Good luck
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