HOAs can place limits on rentals through their governing documents, provided state law allows it — common restrictions include capping the total percentage of units that can be rented out at once, requiring a minimum lease term (often 6 or 12 months, to discourage short-term or vacation rentals), and requiring landlords to register tenants with the association.
These rules generally exist to preserve a sense of owner-occupied stability in the community and to limit turnover-related wear on shared amenities.
A rental cap sets a maximum percentage of units in the community that can be rented at any given time — once that cap is hit, new owners wanting to rent out their unit may be placed on a waiting list until a rental slot opens up. Existing rentals in place before a cap was adopted are often grandfathered in, meaning the restriction applies to future rentals rather than immediately forcing current landlords to end their leases.
Lease restrictions are one specific category within the broader set of restrictive covenants a community can adopt — enforced the same way, through the same escalation process, as rules about paint colors or parking. Because rental restrictions can significantly affect a homeowner's ability to use their property as an investment, boards should make sure any new or amended lease restriction follows the proper amendment process and applies fairly and consistently to everyone.
