Rental Restriction Best Practices

Have you asked your Board these questions? If not, that's the place you really need to start. You should also check your CCRs and Bylaws to verify that the Board can enact these rules. If the rules are subject to a homeowner vote, the Board will have to put the matter to them properly - otherwise, someone might fight it in court and win, and then homeowners would be on the hook for any damages (possibly increasing assessments to pay legal fees and the judgement and all that stuff...)

Rental restrictions are a big deal in HOAs these days because many banks and mortgage companies are leery of underwriting loans in communities with a bunch of rental homes. Government programs like FHA, Freddic Mac and Fannie Mae changed their underwriting rules a year or so ago to where they won't guarantee loans in communities where the owner-occupant percentage is less than 51%. This means if YOU want to sell or even refinance, you can run into trouble.

Some landlords are good, but too many just collect the money and rent the property out to anyone who can fog a mirror. Likewise, there are good renters, but there are others who really don't care about the property because they don't own it and they can always move out (if they don't get evicted first).

Here you go Clint regarding the statute:

Sec. 204.005. EXTENSION OF, ADDITION TO, OR MODIFICATION OF EXISTING RESTRICTIONS. (a) A property owners' association has authority to approve and circulate a petition relating to the extension of, addition to, or modification of existing restrictions. A property owners' association is not required to comply with Sections 201.009-201.012.
(b) A petition to extend, add to, or modify existing restrictions approved and circulated by a property owners' association is effective if:
(1) the petition is approved by the owners, excluding lienholders, contract purchasers, and the owners of mineral interests, of at least 75 percent of the real property in the subdivision or a smaller percentage required by the original dedicatory instrument; and
(2) the petition is filed as a dedicatory instrument with the county clerk of the county in which the subdivision is located.
(c) If a subdivision consisting of multiple sections, each with its own restrictions, is represented by a single property owners' association, the approval requirement may be satisfied by obtaining approval of at least 75 percent of the owners on a section-by-section basis or of the total number of properties in the property owners' association's jurisdiction.
(d) If approved, the petition is binding on all properties in the subdivision or section, as applicable.
(e) A property owners' association that circulates a petition must notify all record owners of property in the subdivision in writing of the proposed extension, addition to, or modification of the existing restrictions. Notice may be hand-delivered to residences within the subdivision or sent by regular mail to the owner's last known mailing address as reflected in the ownership records maintained by the property owners' association. The approval of multiple owners of a property may be reflected by the signature of a single co-owner.

Added by Acts 1995, 74th Leg., ch. 1040, Sec. 2, eff. Aug. 28, 1995.

You are right when I go back and look as TX has items spread out a bit ... it will depend on the date declaration was recorded ... and then whether or not depending on the date the documents have this chapter apply:

§ 82.002. APPLICABILITY. (a) This chapter applies to all
commercial, industrial, residential, and other types of
condominiums in this state for which the declaration is recorded on
or after January 1, 1994. A condominium for which the declaration
was recorded before January 1, 1994, may be governed exclusively
under this chapter if either:
(1) the owners of units vote to amend the declaration,
in accordance with the amendment process authorized by the
declaration, to have this chapter apply and that amendment is filed
for record in the condominium records in each county in which the
condominium is located; or
(2) a declaration or amendment of declaration was
recorded before January 1, 1994, and the declaration or amendment
states that this chapter will apply in its entirety on January 1,
1994.
(b) An amendment to a declaration under Subsection (a)(1)
that implements a vote of the unit owners to be governed by this
chapter may not affect the rights of a declarant or impose duties on
a declarant that are greater than or in addition to the declarant's
duties immediately before the date of the vote or amendment.
(c) This section and the following sections apply to a
condominium in this state for which the declaration was recorded
before January 1, 1994: Sections 82.005, 82.006, 82.007, 82.053,
82.054, 82.102(a)(1)-(7) and (12)-(22), 82.108, 82.111, 82.113,
82.114, 82.116, 82.157, and 82.161. The definitions prescribed by
Section 82.003 apply to a condominium in this state for which the
declaration was recorded before January 1, 1994, to the extent the
definitions do not conflict with the declaration. The sections
listed in this subsection apply only with respect to events and
circumstances occurring on or after January 1, 1994, and do not
invalidate existing provisions of the declaration, bylaws, or plats
or plans of a condominium for which the declaration was recorded
before January 1, 1994.
(d) Chapter 81 does not apply to a condominium for which the
declaration was recorded on or after January 1, 1994, and does not
invalidate any amendment to the declaration, bylaws, or plats and
plans of any condominium for which the declaration was recorded
before January 1, 1994, if the amendment would be permitted by this
chapter. The amendment must be adopted in conformity with the
procedures and requirements specified by those instruments and by
Chapter 81. If the amendment grants to a person a right, power, or
privilege permitted by this chapter, all correlative obligations,
liabilities, and restrictions prescribed by this chapter also apply
to that person.

Added by Acts 1993, 73rd Leg., ch. 244, § 1, eff. Jan. 1, 1994.
Amended by Acts 1997, 75th Leg., ch. 956, § 1, eff. Jan. 1, 1998.

Then depending on dates only certain sections may apply ... I'm not sure I like these TX statutes, no offense but I hate when something that should be somewhat simple becomes so complicated.