Rental units in our Assn

Started by RonaldB7 • 4 replies • 1363 views

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RonaldB7 (Minnesota)
Posts: 1

Posted:

Our Association is a Common Interest Community (Planned Community) in Minnesota. My question is this: Can the Assn limit the number of rentals in the Assn.??? We have 24 owner's and right now we have 7 rentals.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Ron

Typically such a major change (limit or eliminate rentals) may require 100% of owners to agree with. Could be tough to do.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Ronald,

Rental restrictions need to be within the CC&Rs to typically withstand a legal challenge.

The best restriction I have found is one that prevents renting the first x years after ownership (typically 1 or 2 years). This tends to keep investors out but allow those who need to rent to rent.

A proposed amendment might be:

Rental Restrictions - No unit/lot purchased after mm/dd/yyyy may be rented during the first x years of ownership.

This will likely get the most support as it doesn't prevent rentals of those who already own.

DouglasK1 (Florida)
Posts: 2,046

Posted:

To add on to what Tim said, the first step would be to read your CCRs and other documents to see if there is already a rental restriction defined that could be enforced.

Escaped former treasurer and director of a self managed association.

TimB4 (Tennessee)
Posts: 21,059

Posted:

Quote:

Posted By RonaldB7 on 10/13/2015 11:19 AM

My question is this: Can the Assn limit the number of rentals in the Assn.???

The answer is yes, if it is done properly.

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