We Understand The Ins And Outs Of Real Estate Law
Can an HOA or condo association prohibit short-term rentals?
Those intending to invest in real property often have multiple options available. They might acquire vacant parcels to hold for decades and then sell as development expands. They might flip houses by buying properties in mediocre condition, repairing them and reselling them for a profit.
They might also rent the properties that they acquire to others. Long-term rentals are often the most stable option, but short-term rentals can be particularly lucrative. Owners can list properties on digital platforms and even outsource the cleaning after they leave.
When looking at properties in high-demand neighborhoods, investors might find homes located in homeowners association (HOA) neighborhoods or they might find condominiums for sale. Do investors typically have to worry about condominium associations or HOAs interfering with their plans to rent a unit?
Bylaws can limit rentals
It is relatively common for HOAs and condominium associations to impose limitations on rentals within the community. These entities do have the legal right to impose certain restrictions on the use of individual homes, as well as demands regarding maintenance.
In some cases, the bylaw may include provisions that limit the total number of rentals to a certain percentage of all homes in the community or building. Other times, communities may restrict rental arrangements by requiring a minimum duration for leases. Validating what the bylaws currently say about rentals and short-term rentals in particular is a smart move for investors.
Learning more about the risks and benefits of different real estate investment opportunities can help people make the right investment choices. Investors hoping to establish a portfolio of short-term rentals may need to proceed with caution when looking at condominiums and HOA properties.