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Renting and Homeowners Associations

Can a homeowners association prohibit rentals? Like most answers to legal questions, the answer is it depends.

Did your CC&Rs prohibit rentals when the landlord bought the property? If so, rentals are prohibited.

Is the rental prohibition a rule and not a provision in the CC&Rs? Associations with CC&Rs that grant the board with a general rulemaking power may adopt rules restricting leasing of units so long as the rule benefits the community and is not arbitrary or capricious.

Is the association amending the CC&Rs to expressly prohibit rentals? Rental prohibition amendments to condominium CC&Rs require unanimous consent of all unit owners to be valid. Rental prohibition amendments to planned community CC&Rs are valid if passed by the membership percentages set forth in the CC&Rs.

Did the developer tell the landlord that rentals would always be allowed when she bought the property? Generally, associations cannot enforce future amendments against members who relied on promises made at the time of sale.

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