Does Short Term Rental Violate HOA Rules?

This case involved a dispute between the owner of two townhomes (“Owner”) located within a townhome community governed by a community association (“Association”) over Owner’s right to rent its units “for short term hotel, vacation rental, and/or transient use.” Association contended that Owner’s short-term rentals of the units was in violation of Association’s CC&Rs requirements that the units be used for single-family residential use.

After Association made multiple demands on Owner to cease and desist from renting the units for short term hotel, vacation rental, and/or transient use, Owner filed an action against Association seeking a declaration that the CC&Rs did not restrict the duration of owner or tenant periods of occupancy. In response, Association filed a counterclaim against Owner for breach of the CC&Rs and nuisance, and injunctive relief to enjoin Owner from continuing with the short-term rentals.

Several months after the lawsuit was filed, Association’s board of directors adopted rules which barred short-term rentals. Owner then amended his action for declaratory relief to seek further declarations that: (i) the rules adopted by Association were void and unenforceable to the extent they sought to regulate anything beyond the Common Area facilities; and (ii) the rules that sought to regulate the duration of occupancy or leasing were void because they exceeded the scope of the powers granted to Association by the CC&Rs, and/or they conflicted with the broad grant of leasing rights contained in the CC&Rs.

The trial court granted summary judgment in favor of:

Subscription Required to Continue Reading

To view the full HOA Featured Article, you must have a Subscription with HOA Member Services

Become a Member

Personal Monthly

$ 12.70 /month
  • Access to over 600 Articles & Case Decisions
  • Access to hundreds of Resources
  • HOA Newsletter
  • Free Copy of HOA LIVING
  • 25% OFF Download Forms
  • 1 User

Personal

$ 97 Annual
  • Access to over 600 Articles & Case Decisions
  • Access to hundreds of Resources
  • HOA Newsletter
  • Free Copy of HOA LIVING
  • 25% OFF Download Forms
  • 1 User

Pro

$ 297 Annual
  • Access to over 600 Articles & Case Decisions
  • Access to hundreds of Resources
  • HOA Newsletter
  • Free Copy of HOA LIVING
  • Free Unlimited Access to Download Forms (save $1000s!)
  • Unlimited Personal Support from HOA Attorney
  • 1 User

HOA Team

$ 347 Annual
  • Access to over 600 Articles & Case Decisions
  • Access to hundreds of Resources
  • HOA Newsletter
  • Free Copy of HOA LIVING
  • Free Unlimited Access to Download Forms (save $1000s!)
  • Unlimited Personal Support from HOA Attorney
  • Up to 10 Users

Get Your FREE
HOA Living Guide

 Get ready to level up your community! Dive into our guide for homeowners and management personnel in neighborhoods run by homeowners associations. Download now for essential tips and exclusive resources— improve your community with one click! 

Success, check your email for your guide!

Scroll to Top