Rentals
Hi Dennis,
We’re a self-governing HOA. Our documents do not specify rentals, so we’ve followed the state laws. Recently members have asked if we can limit the number of rental in our 65 home Association to avoid investors buying up homes as we are blue-collar-professional and are having trouble with 1 of 3 rentals already. If so, would we amend the By-Laws rather than CC&Rs? The Board’s concern is this problematic, which could open us up to lawsuits?
Thank you.
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Brenda,
Only the recorded CC&Rs can restrict the use of private property. So, amending the bylaws to restrict rentals is illegal and inappropriate. If your current CC&Rs do not restrict rentals in any way, then you cannot modify the CC&Rs to add a new restriction without the unanimous consent of all homeowners. This is fundamental contract and property servitude law and direct case law for Arizona based on the State Supreme Court ruling in 2022 in the Kalway v Cambria Ranch HOA case. While I understand the concerns relative to rentals, this is still private property, and absent a restriction against rental, any homeowner is free to do whatever he wants to do with his property. You would expect the same treatment if the shoe were on the other foot.
Dennis
Thank you, Dennis for the clarity we were looking for.