Should You Allow Rentals in Your LA HOA Community?

Should You Allow Rentals in Your LA HOA Community?

Living in Long Angeles is a dream, but you'll have an even better life if your home is in a community association. HOA living offers several unique benefits that you wouldn't get if you were living in a non-HOA home.

If you're in a leadership position in your HOA, you do everything within your power to make the community a greater place to live. One of the issues you'll have to deal with is rentals in an HOA community.

Should you allow, restrict, or ban them?

The Case Against Rentals in HOA Communities

First things first, why do most HOAs frown upon the idea of having rentals in their communities?

Although renters are bound by the rules of an HOA, they have no real incentive to follow them. For example, an unruly renter can blatantly violate an HOA's noise regulations, knowing well that they can move out whenever they wish.

Imagine having several renters doing this. The community will quickly become chaotic and lose its appeal to homeowners.

So, if HOAs had their way, they would not allow these rentals at all. But what is preventing them from having their way?

California Laws

HOAs are self-governed but must follow the laws of the land. When it comes to rentals in HOAs, states have different laws. Some states leave it to the HOA to decide on how to handle the issues, others, including California, prohibit HOAs from banning rentals.

So, for an LA HOA, it's illegal to disallow rentals in your community.

Now that you cannot ban them, does it mean the HOA board should let homeowners rent out their homes like it's an open market?

No, there are effective ways to handle the matter without lowering the allure of the community or violating the rights of HOA property owners.

Best Practices for Rentals in an HOA Community

Your goal is to enforce reasonable HOA rental restrictions. Property owners have the right to use their assets to generate rental income if they so wish, but you must also uphold the community's purpose.

One strategy is to restrict the number of homes that can be used as long-term rentals at any given time. California law puts the cap on a 25% minimum, but you can go higher depending on the size of the community.

What about short-term rentals?

These are notorious for hosting unruly parties, and the law allows you to ban them. However, a lease that's longer than 31 days is no longer considered a short-term lease, so owners can be allowed to rent out their homes that way.

Professionals HOA Management Is the Key to Successful Communities

Rentals in an HOA community don't have to be a deal breaker. HOA management just needs to strike a balance between respecting homeowners' property rights and safeguarding the community's need to provide a serene, secure living environment.

To achieve this, your HOA needs to turn to a professional association management company. PMI LA Pacific offers the solutions you're looking for. We're part of a franchise property management network, but our company is independently and locally owned.

Check out our services and schedule a consultation to learn more!