Can My HOA Restrict me From renting my HOme?

"It's my property. Why can't I rent it if I want to?"

It's a question many homeowners ask.

When you purchase a home in a homeowners' association, you agree to follow the community's governing documents. Those documents may include leasing restrictions that determine whether a home can be rented and, if so, under what conditions.

Every community is different, so it's important to understand your own Association's rules before purchasing a home as an investment or deciding to lease your property.

Let's take a closer look.

Can an HOA Restrict Rentals?

Yes.

Many homeowners' associations have leasing restrictions in their governing documents. 

These restrictions vary from one community to another and are intended to help preserve the character and long-term goals of the neighborhood.

Some communities have very few restrictions, while others have more detailed requirements.

The key is to review your Association's governing documents to understand the leasing rules that apply to your community.

What Types of Leasing Restrictions Are Common?

Every HOA is different, but common leasing restrictions may include:

• Requiring a homeowner to own the property for a certain period before leasing it. 
• Minimum lease terms, such as six  months or one year. 
• Prohibiting short-term rentals, such as daily or weekly rentals. 
• Requiring tenants to complete an  application or screening process. 
• Requiring the lease to be  registered with the Association. 
• Requiring both the owner and  tenant to sign a lease addendum acknowledging the Association's governing   documents. 
• Limiting the number of unrelated occupants who may live in the home. 
• Requiring tenants to follow the same rules as homeowners. 
• Limiting the total number or percentage of homes that may be leased at any one time.

Not every community has these restrictions, and some communities may have additional requirements.

Why Do Some HOAs Have Leasing Restrictions?

Leasing restrictions are not necessarily intended to prevent homeowners from renting their property.

Instead, many communities adopt leasing restrictions to balance the interests of homeowners, tenants, and the Association.

Some homeowners believe that encouraging long-term residency helps promote neighborhood stability and a stronger sense of community.

In addition, some mortgage programs consider owner-occupancy levels when evaluating financing within a community. Likewise, insurance carriers may also consider owner-occupancy ratios when underwriting or pricing insurance coverage for the Association.

For many homeowners, protecting the long-term value and marketability of their home is an important consideration.

 Leasing restrictions are one of several approaches some communities use to balance the interests of homeowners, tenants, and the community as a whole.

Who Is Responsible When a Home Is Leased?

Leasing your home transfers occupancy—but it does not transfer ownership.

Even after a home is leased, the homeowner remains responsible for complying with the Association's governing documents, including paying assessments and ensuring the tenant follows the community's rules.

If a tenant violates the community's rules, the Association will generally look to the homeowner, not the tenant, to correct the violation.

For that reason, many Associations require lease addendums acknowledging that tenants agree to follow the community's governing documents. Depending on the Association's governing documents, the lease addendum may also contain additional provisions that protect the Association and clarify the rights and responsibilities of both the owner and the tenant.

Florida law also provides additional protection for homeowners' associations. If a homeowner becomes delinquent in paying assessments or other monetary obligations owed to the Association, the Association may, under certain circumstances, require the tenant to pay future rent directly to the Association until those obligations are satisfied.  The tenant receives credit for those payments toward the rent owed under the lease.

Because lease addendums and governing documents vary from one community to another, homeowners and tenants should carefully read and understand the documents before signing.

Can the Board Change the Leasing Rules?

Yes, but there is a process.

The Board may believe the community's leasing restrictions should be changed. However, it usually cannot make that change simply by voting at a Board meeting.

Instead, the Board must propose an amendment to the governing documents. In most communities, the homeowners must then approve that amendment by the vote required in the governing documents.

Once approved by the homeowners, the amendment isn't effective immediately. It must go through a legal process in which the amendment is formally prepared and recorded in the county's public records, something that is typically handled by the Association's attorney. 

Once that process is complete, the amendment becomes part of the Association's governing documents and is enforceable.

Bottom Line

Leasing restrictions are common in many homeowners' associations, but they vary from one community to another.

Before purchasing a home with the intention of renting it, or before leasing your existing home, take the time to review your Association's governing documents so you understand the rules that apply.

Knowing those rules in advance can help you avoid unexpected surprises later.

Understanding your homeowners' association doesn't happen at all at once. 

It happens one conversation at a time.

You don't have to learn everything today.

Knowledge builds confident homeowners.

Engaged homeowners build stronger communities.

Let's keep the conversation going.

 Florida HOA Spotlight — Helping Homeowners Understand Their Communities... One Conversation at a Time.