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Home · Property Management · Latest News : New Law Means HOA’s Can’t Restrict Rentals

for sale for rentCalifornia has passed a bill which limits Home Owner Associations from restricting rentals.

Under the provisions of the new bill, an owner is not subject to a provision in a HOA or similar covenant which attempts to restrict the owner’s right to rent out the home, unless the rule is in place prior to purchase of the property.

Under the bill, an owner could expressly consent to a restriction on renting. In that case, if the owner sells, they must disclose the restriction to a prospective purchaser before contract.

In addition, the bill requires the owner to disclose any restriction on the rental or leasing of the property to a renter, lessee, or tenant.

The law goes into effect January 1, 2012.

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  • mark

    We know how restrictive this clause is. We own a home in a very popular seaside area. the CCR limits the minimal occupancy time to 30 days or more. The HOA and the management group are relentless. This clause is too restrictive. Too bad the law did not remove the requirement period.

  • Wally808Hi

    In Hawaii unless you have a license to do bed and breakfast or vacation rentals which there are other regulations and taxes, it restricts rentals from not less than 30 days. I feel that is a good thing as this state has too many neighborhoods that would have the peace and quiet due to vacationing type occupants coming and going all hours of the day and night…PARTY!!

    Feed back from our mainland residents and visitors…. Calif./west coast side more unruly etc than East coast side that would less apt to mess or dirty, damage a place than the Western half. This also is comments of the hotel workers/maids..

    No wonder that Calif leads the nation on restrictive measures/laws than other states

  • Diane

    Are there any other states that have this law? Such as Oregon? We bought a home in a 55+ community as an investment and rental, six months later they amended the HOA’s to say no rentals allowed.

  • Richard

    Diane – I am also interested in any law in Oregon as well. We have a home that was purchased as a vacation home but due to the economy we have chosen to rent it out. It has been leased out for the last three years (4 different tenants). Tomorrow the Board has added an agenda item regarding rental limitation. We are concerned and hope to get more information tomorrow, followed by talks with the rental property manager – if anyone should know what is going on, they should.

    There is the misconception about renters (leases, specific). First, in a planned community or a gated community, CCR exist that require everyone to abide by the rules. In our community the common areas are maintained by the association (essentially homeowners pay a fee). So, from the exterior – no difference between a homeowner and a renter. I disagree that renter devalue one’s property. When we lived in our unit, almost all violations during the “housing boom” were caused by homeowners. Given the economy, many are now being rented – this will not be curtailed until the economy is in full swing.

    I live in a planned community, where al the homes on my street where foreclosed because the developer did non pay the mortage on the home he rented out. These renters where all good neighbors and maintain their yards as required by the CCR’s. Now, all home are owner-occupied and of the 7, four are noncompliant in maintaining there yards. I have reported them on several occasion – still noncompliant. homeowner versus renter?

    I’ll post more information as I research.

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