Rental Capacity

Let me guess. Some genius limited the number or percentage of units that can be rented but failed to put any mechanism in place for controlling who rents what and when.

When some land baron purchases a unit, how does he know how many units are already rented? Why is the first guy entitled to rent his unit while the last guy is prohibited from doing the same? Since your association is trying to control the number of rentals, what are you doing to give each owner the same opportunity?

Don't get me wrong. I do not like the idea of rental units in a condo. But without some means of association control of rentals your rental restrictions are doomed to fail.

Rental restrictions typically can not be enforced by a HOA. They can by the mortgage companies that loan the money. They can put use of property limits on it. I've seen one lender (FHA type) have it so one can not rent their home for 2 to maybe 5 years after purchase. However, the HOA is a group of homeowners and don't loan out money to make purchases. So they can't really control if you rent out the property or not. Just hold the feet of the owner's to the ground for the renter's violations.