Getting HOA approval prior to renting

Michael1248
Level 1
Fort Collins, CO

Getting HOA approval prior to renting

My HOA requires a background check and approval for new residents - even short term. How do I provide the application to the prospective tenant in advance of the rental and stipulate "Reservations subject to approval"?

1 Reply 1
Magic3
Level 5
Tucson, AZ

To Anyone who owns (or is thinking about owning) a home in an HOA and who intends to short-term rent it:  Speak with a real estate attorney who specializes in representing home owners within HOAs. It will be the best couple hundred dollars you've ever spent.

 

They can tell you whether the HOA has the legal right to require that you provide information like this or otherwise attempts to thwart your business.

 

Sometimes HOAs pass new rules without proper votes and going through the proper channels and therefore their rules are unenforceable. You can also speak with your HOA leadership to ask for clarification and a change to the rules, unless they are specifically using this rule to discourage short-term rentals. 

 

If your HOA does not specifically state that short-term rentals are prohibited within the CCRs, and if the rule specifically states that you must provide info on "residents" who sign "leases", and if the rule does not specifically state that short term "rental agreements" must provide this info, then you may have a case. A rental agreement and a lease are usually treated as totally different things in the eyes of the law.

 

Otherwise, I suggest you make that your primary residence, keep it as a long-term rental, or sell it. Short Term Owner Beware when dealing with an HOA.