Over the past several years, I have talked with many condo owners who were being denied the opportunity to rent their condo because their HOA had instituted rules, after they had purchased their condo, prohibiting the owners from renting or leasing their condo.  Maybe they were moving for their job and wanted to rent until they could return to the area.  Some were move-up buyers who wanted to keep the condo for the rental income and become investors. No matter what the reason for their desire to rent or lease their condo, the HOA was prohibiting it in many cases.

I am happy to report, that through the efforts of the California Association of REALTORS, we were successful in the passage of legislation, Senate Bill 150, protecting the owners’ right to rent out their units in these common interest developments.  Starting on January 1, 2012, a condo owner is exempt from any prohibition in the association’s governing documents against renting or leasing their unit unless that prohibition was in effect before the owner acquired title to his or her unit.

So, if you are thinking about buying a condo, make sure that you review the HOA disclosures and look for any prohibition already in place that prohibits renting or leasing.

Additionally, an owner’s right to rent under this law does not terminate for certain transfers of title, including, but not limited to, probate, spousal, parent-to-child, adding a joint tenant, and other transfers exempt from property tax reassessment.

This law does not apply to rental prohibitions in effect before 2012.

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As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
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