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How to deal with homeowners association rental restrictions

On Behalf of | Apr 15, 2021 | HOA Issues |

You’ve bought a condominium, townhouse or a house in Florida as a second home, and while you enjoy spending time in the Sunshine State, your primary home is elsewhere. It makes sense to rent out your property to get a return on your investment. However, the question is, will your homeowners’ association let you rent your property?

HOAs wield a lot of power over property rentals

HOAs have the freedom to create all kinds of lease restrictions that can include limiting the number of rentals per year, screening renters and prohibiting pets. HOSA rental restrictions are the most common real estate disputes, and while some can get contentious, they don’t have to be that way.

Typical rental restriction rules

Condominium HOAs are typically the most restrictive bodies, sometimes because they want the entire structure to qualify for FHA or Fannie Mae financing. However, the general purpose of strict rules is to maintain the quality of units with the HOA to keep property values high. Typical reasonable restrictions include the following:

  • Limits on the number of times owners can rent their unit
  • Setting a minimum lease period
  • Mandatory waiting period after buying the property
  • Rental cap on the percentage of units that may be leased at a given time

Other restrictions involve requirements for prospective renters like:

  • Meeting certain financial criteria
  • Proving that they were good tenants in previous properties
  • Agreeing to a background check
  • In-person interview with an HOA board member

Working with your HOA

Instead of fighting with your HOA, work with them on rental issues to avoid real estate disputes. Outright bans of rentals are generally uncommon and only occur when a majority of homeowners do not want the practice. Finding out what your HOA will and won’t allow before signing papers to buy your property will help you understand the rules.

If you are buying a Florida property and don’t understand your HOA agreement, consulting an attorney experienced in real estate law can help make your experience easier. You may find that leasing your property is possible.