![]() ![]() However, tenant-screening should be exercised with caution. Tenant approval provisions are a tempting option for associations because they allow the board to weed out tenants who might not harmonize with the community. By contrast, California mandates that owners provide an applicant’s name and contact information to the board before leasing the property. ![]() An association’s covenants might also make a renter’s compliance with community standards a mandatory term of every lease, thereby granting the landlord authority to evict a non-complying tenant.Īn Arizona association can only ask for a prospective tenant’s name and contact information and the lease’s time period. A common lease restriction establishes a minimum lease period (e.g., 30 days), so as to avoid vacation rentals and high community turn-over. Lease restrictions set forth certain provisions which must be included within any lease agreement offered by a lot owner. An alternative approach, designed to discourage purchases made solely for investment, requires new owners to reside in the home for at least one year before renting. The board usually approves rentals on a first-come, first-served basis and might have to keep a waiting list if the cap is reached. Rental caps limit the total percentage of homes (commonly 20%) that can be rented in a development at any given time. Rental restrictions come in several forms, two of the most popular of which are caps and lease restrictions. What forms of rental restrictions can an association adopt? If this standard is met, and the restriction is enforced in a fair, nondiscriminatory manner, it will likely be enforced. The inquiry is fact specific, but, in general, a restriction is reasonable if it is rationally related to the protection of property and promotes the purposes for which the association was created. Because renters tend to be more likely to violate association rules and less likely to obey upkeep standards, promoting compliance with covenants might also be a legitimate purpose for rental restrictions.Īlong with serving a legitimate purpose, to be enforceable a rental restriction must be a “reasonable” means of accomplishing the stated goal. Likewise, rental restrictions can increase the number of residents with a vested interest in the development’s long-term success, thereby promoting neighborhood stability and a sense of community. More renters within a development can result in higher liability insurance rates and lower property values, so a cap on rental properties might protect members financially. “Legitimate purposes” justifying rental restrictions typically involve maintenance of property values and promotion of community standards.
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