Can the HOA Restrict the Number of Rental Units?

S.P. from New Haven County writes:

Dear Mister Condo,

Can the HOA restrict the number of rental units in a complex?

Mister Condo replies:

S.P., yes! Although they cannot do so randomly or without following the rules for making rules that would limit the number of rentals. Rental caps are quite common in condominium association or lots of reasons. What do your governing document say? Often, there is a limitation right there. If not, what is the limit? Many associations find they cannot get FHA financing for their unit owners if more than a certain percentage of units are rented, hence, the rental cap. What they can’t do is change the rental cap while you are currently renting your unit, forcing you to evict your tenant. However, they could prevent you from renting the unit again until the percentage requirements are met. In that case, they start a rental list that allows you to rent when the availability for rentals will not exceed the rental cap. If you have further questions, you should consult with a local real estate attorney who can offer you proper legal advice on the matter. Good luck!

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