The American constitution states “the rights of life, liberty, and property” as fundamental and inalienable. It’s the basic law, but those keen on offering one of their properties for rent must know the rules, regulations, and limitations surrounding rental services. It’s essential before reaching out to your trusted agent or a professional Los Angeles property management for any services. The Homeowners Association (HOA) lays down a few rental policies and restrictions on how individuals rent their properties. The rules serve a beneficial purpose surrounding an entire community.
In California, the state with the 4th highest rent price in the country, the HOA lays down rules that may limit a person’s free use of a rental property for the greater good and development of local communities/neighborhoods. Hence, before renting out any apartment, home, or other property type in the state, you must be aware of the different regulations surrounding the process. Let’s look at a few HOA restrictions that can come into play.
HOA Rental Restrictions You Must Know Before Renting Your Property
1. Restriction on the Right to Rent
The HOA may limit an individual’s right to rent their property based on community growth measures. Such a rental restriction can only get implemented if it is reasonable to achieve a particular goal or maintain a required standard. Local authorities are keen on promoting accessible neighborhood standards. Enforcing rental restrictions can increase how many residents rent properties within a specific perimeter, contributing to a community’s long-term growth.
2. Can the HOA Screen Potential Renters?
The association may reserve the right to check possible tenants to determine their genuineness about renting a property without being detrimental to the place or the surrounding community. Such a policy may require a property owner to submit details such as a potential tenant’s name, contact details, or even their rental application. However, ensuring that the HOA does not conduct any screening process that may be discriminatory against any class and violate the FHA regulations, is always necessary.
3. How Can You Access Rental Restriction Rules?
All the rules are mentioned in the association’s declaration to ensure that all property owners know the possible HOA rental restriction. These are generally on public record. New owners are deemed to have all information in their hands via constructive notice, or if they’re buying from property management company San Francisco, who know the HOA rules and how to comply with them. It is also helpful to provide property owners with an actual notice that explicitly lists every regulation and restriction to avoid any complications in the long term.
4. How are the Restrictions Imposed?
Associations must apply these rules to the property owner, as a tenant isn’t a part of the rules. It is impossible to evict them because the owner has violated a mandate. However, it is possible to penalize the owner through fines or other disciplinary actions that the association has agreed to.
Recent Developments to the HOA Restrictions in California
From January 1st, 2021, associations must follow revised rental caps for different governing documents. The aim is to make rental limits more reasonable for property owners and remove unenforceable restrictions. Here is a look at what has changed:
1. Rental Cap
It limits the total number of rental leases available in the development. For example, no more than 10% of available units in an establishment can get rented out at once. From January 1st, 2021, rental caps that are more than 25% are unenforceable. The HOA must amend all its governing documents to align with these changes.
2. Lease Term Requirement
From January 1st, 2021, any provision in a governing document requiring a lease term to fall longer than a month/30 days is pronounced unenforceable.
3. Ownership Requirement
Previously, there was a requirement that property owners would have to mandatorily live in a house for a specific amount of time before they could use it as a rental space. The restriction is not applicable anymore under Civil Code 4741.
Endnote
Rental restrictions by the HOA in California are implemented for community growth while keeping in mind the interests of property owners. Hence, all the limits established are within reason, and owners looking to rent out their properties must be aware of these rental caps. When you buy an apartment to rent or want to rent an older property, always ensure that you look up the latest developments so that you won’t violate any terms before you rent it out to a tenant.