AlbertK (Arizona)
Posts: 3
Posts: 3
Posted:
IN OUR ARIZONA HOA CC&R'S, IT STATES THAT THE HOMEOWNERS CANNOT RENT OR LEASE THEIR HOME. IS THIS LEGAL IN THIS STATE?
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HOMEOWNERS RIGHT TO RENT OR LEASE THEIR HOME
Started by AlbertK • 12 replies • 1808 views
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BrianB (California)
Posts: 2,820
Posts: 2,820
Posted:
i am sure you will get a more legal answer soon, but the first thing is that in the absence of a new state law barring such a thing, it is a valid contract agreed to by both parties. If a party wanted to rent their property, they should not have signed an agreement not to.
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
Brian is right on this. If there was no prohibition in place they couldn't add one unless everyone agreed to it, but if the prohibition is there from the get-go then unless the state passes a law banning it; it is a valid restriction.
Studies show that 5 out of 4 people have problems with fractions
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Besides, isn't there some federal law that says you can't prohibit someone from renting their home? (Although you can set conditions.) I think I came across it once. I'll have to research it again. If I find it, I'll post it here.
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Forget what I posted above. I think I was visiting another planet at the time.
Actually, I might have read something in this forum some time ago. This subject has come up before.
Some states might have laws against prohibiting rentals, but you's have to check.
Anyway, there are arguments on both sides. Owners will claim that prohibiting rentals is interferring with their rights as property owners.
On the other hand, there are good, financial reasons to prohibit or limit rentals. Some mortgage companies look at the percentage of units that are rented when granting mortgages to buyers, so a higher percentage of units that are rented can make units harder to sell and can decrease their value. Also, in some situations, rentals can increase insurance premiums for the HOA.
Whether it's legal or not in Arizona, I can't say, but you can probably Google for your state laws and look it up.
Actually, I might have read something in this forum some time ago. This subject has come up before.
Some states might have laws against prohibiting rentals, but you's have to check.
Anyway, there are arguments on both sides. Owners will claim that prohibiting rentals is interferring with their rights as property owners.
On the other hand, there are good, financial reasons to prohibit or limit rentals. Some mortgage companies look at the percentage of units that are rented when granting mortgages to buyers, so a higher percentage of units that are rented can make units harder to sell and can decrease their value. Also, in some situations, rentals can increase insurance premiums for the HOA.
Whether it's legal or not in Arizona, I can't say, but you can probably Google for your state laws and look it up.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
There is no AZ HOA state law preventing this. However, I do believe the CCRs would have to be amended to allow it, which would require a vote of the members. I don't believe the board could just pass a board-adopted rule w/o a vote of the members. Although the board may have the authority to pass rules w/o the vote of the members, the rule cannot be for or against something that is not addressed in the gov. docs. So, if the current docs say nothing about renting your home, the board cannot just decide to adopt a rule addressing home rentals.
BruceF1 (Connecticut)
Posts: 2,535
Posts: 2,535
Posted:
Mary,
I agree. Something must stated in the CCRs about rentals, and giving the board the authority to establish any rules regarding them. The board would be limited by whatever the CCRs allowed. Rules are supposed to supplement the CCRs, not take the place of them.
I agree. Something must stated in the CCRs about rentals, and giving the board the authority to establish any rules regarding them. The board would be limited by whatever the CCRs allowed. Rules are supposed to supplement the CCRs, not take the place of them.
GlenL (Ohio)
Posts: 5,491
Posts: 5,491
Posted:
There is an excellent article that addresses this subject at: http://realtytimes.com/rtcpages/20020102_hoarentals.htm
Studies show that 5 out of 4 people have problems with fractions
cpoulin (Colorado)
Posts: 35
Posts: 35
Posted:
If your Declaration doesn't specify - then you have to look at two things:
Is your development a PUD (Planned Unit Development).
The regulations governing the formation of a Not-for-Profit
organization from your state business regulators.
These two things may give you your answer - our development states in our declaration it states under use that the units are single family units. I don't think you can have one family own it and one family reside in it - or then it becomes a multi-family unit. Hope this helps.
Is your development a PUD (Planned Unit Development).
The regulations governing the formation of a Not-for-Profit
organization from your state business regulators.
These two things may give you your answer - our development states in our declaration it states under use that the units are single family units. I don't think you can have one family own it and one family reside in it - or then it becomes a multi-family unit. Hope this helps.
DJ1 (Ontario)
Posts: 798
Posts: 798
Posted:
cpoulin, if one family owns a house and another rents/leases it, it is still a single family unit, not a multi-family unit, so long as the renters are using it exclusively during the rental/lease. Usually use of the common areas also transfers to the renter/leaser during the rental period as well and the owner loses use.
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
cpoulin
(Colorado)
05/04/2008 7:41 AM Quote Reply
If your Declaration doesn't specify - then you have to look at two things:
Is your development a PUD (Planned Unit Development).
The regulations governing the formation of a Not-for-Profit
organization from your state business regulators.
These two things may give you your answer - our development states in our declaration it states under use that the units are single family units. I don't think you can have one family own it and one family reside in it - or then it becomes a multi-family unit. Hope this helps.
--------------------------------------------------------------------------------
The "single-family" designation in your CCRs is just a classification of the type of housing. It does not mean only one family can reside in a dwelling. It means single-family housing(1 home) as opposed to condo housing(more than one home). This is a very common misconception people have with the term "single-family".
(Colorado)
05/04/2008 7:41 AM Quote Reply
If your Declaration doesn't specify - then you have to look at two things:
Is your development a PUD (Planned Unit Development).
The regulations governing the formation of a Not-for-Profit
organization from your state business regulators.
These two things may give you your answer - our development states in our declaration it states under use that the units are single family units. I don't think you can have one family own it and one family reside in it - or then it becomes a multi-family unit. Hope this helps.
--------------------------------------------------------------------------------
The "single-family" designation in your CCRs is just a classification of the type of housing. It does not mean only one family can reside in a dwelling. It means single-family housing(1 home) as opposed to condo housing(more than one home). This is a very common misconception people have with the term "single-family".
cpoulin (Colorado)
Posts: 35
Posts: 35
Posted:
Then if your development is a not-for-profit organization and it also states that you can not use your home for business purposes because of the zoning regulations for our PUD is residential and not a combination of residential and business, would that have any baring on the ability to use your townhouse as a rental (like renting or leasing an apartment which is considered a business transaction.)???
MaryA1 (Arizona)
Posts: 7,043
Posts: 7,043
Posted:
Cpoulin,
Whether your assn is located in an area zoned residential & commercial or just residential doesn't matter. What matters is what your CCRs say. If they say "no commercial business may be conducted in any unit" (or something to that effect), then you are in violation of the CCRs if you run a business in your home. It's up to the board to define what "commercial business" means.
If the area is zoned residential/commercial that means both type structures are permitted w/i the area -- certain sections will be zoned residential and other sections will be zoned commercial. It doesn't mean a residential structure can house a commercial enterprise.
The city where I live has regulations pertaining to home businesses. A business license is required and the city must approve the type business to be conducted in the home.
Whether your assn is located in an area zoned residential & commercial or just residential doesn't matter. What matters is what your CCRs say. If they say "no commercial business may be conducted in any unit" (or something to that effect), then you are in violation of the CCRs if you run a business in your home. It's up to the board to define what "commercial business" means.
If the area is zoned residential/commercial that means both type structures are permitted w/i the area -- certain sections will be zoned residential and other sections will be zoned commercial. It doesn't mean a residential structure can house a commercial enterprise.
The city where I live has regulations pertaining to home businesses. A business license is required and the city must approve the type business to be conducted in the home.
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