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.

With AAOA, landlords have resources at their fingertips. Check out our Landlord Forms page.

American Apartment Owners Association offers discounts on products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at