Property Management Blog

Do HOAs Allow Owners to Rent Out Their Condos

Property Management Blog

Homeowners who live in a neighborhood or condominium with a homeowners' association (HOA) must abide by the association's rules, bylaws, or articles. In some cases, the HOA can take serious action when a homeowner goes against the rules, and some disputes may result in legal action.

The thought of an HOA controlling every facet of your residential life may make you wonder why anyone would want to put up with an HOA. However, HOAs can come with perks like luxurious amenities and beautifully manicured common spaces. If you're thinking about renting out your home or condo, you might want to learn about your property's rental rules.

Do HOAs allow owners to rent out their condos or homes?

The answer to this question depends on where your home is located. If you're in Texas, your HOA can place some restrictions on occupancy and leasing activity. However, those restrictions must appear in the HOA's declaration or one of the association's amendments.

A court case in Texas recently limited how much power an HOA has to enforce restrictions on short-term rentals. Because the HOA's rules didn't specifically mention short-term rentals, the court held that the association couldn't prevent residents from using their homes for short-term rental activities.

Meanwhile, in Florida, the state government recently modified its rules on when and how an HOA may place restrictions on a homeowner's ability to rent out their property. The state does allow HOAs to place restrictions on short-term rentals if the HOA property adopts the governing document or amendment.

However, according to Florida SB630, homeowners and condo owners have slightly more freedom for renting their properties as traditional rentals rather than short-term rentals. In some cases, a homeowner may rent out their property despite an HOA rule against it. The law is complex, though, so it's important to consult with an expert if you're unsure of your rights.

Interestingly, a California homeowner might fare better than one in Texas or Florida regarding rental freedoms. The state passed a law in 2020, Assembly Bill No. 3182, that restricted an HOA's ability to place rental restrictions on homeowners. The assembly passed the bill to alleviate the rental crisis in the state.

What's the Takeaway Regarding HOA Rules and Rentals?

The most essential task you can undertake when you're thinking about renting out your home or condo is to read the bylaws or official documents of the HOA. The HOA cannot require anything of you that they don't spell out in the laws.

If you already live in your home and want to rent it to someone else, it's essential to read over the bylaws of your HOA with a fine-tooth comb. If you're thinking about buying a home and renting it out, make sure that you read the HOA rules before committing to the purchase,

Further, the state you live in might place restrictions on what rules an HOA can adopt that tell you what to do with your property. You may benefit from using a property management company, which will help you set up your rental. You can also rely on a lawyer if you feel your HOA has done something you believe is illegal.

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