HOA for a new community

6 Replies


So I'm in the process of buying a home that will be my primary residence but during the week when I'm gone, I'd like to rent it out as a short term rental. It's a new community and they're marketing as "perfect for investors" and "no rental restrictions". The listing agent said the builder is the one that has set the rules but the HOA has yet to become fully established. I know there are a few other properties in the community that are being rented out. My worry is that once the HOA becomes fully established, they'll all of a sudden change the rules to ban short term rentals. One of my friends told me that this needs to be voted on by the community and if anyone opposes, they won't be able to enact the ban. Is this true?

It really doesn't matter because the HOA can change it at any time, not just when they first establish the HOA Board. In other words, they could say vacation rentals are 100% allowed for ten years and then suddenly vote to ban them.

That's the nature of the beast. 

Your friend is wrong about "if anyone objects....". It will simply need to be whatever majority vote the CCR's provide for to change the rules. If the majority of purchasers/hoa members are owner occupants...expect that to happen.

That’s unfortunate. Also would be dishonest from the builders standpoint considering they are marketing it as a investment type property fully knowing that the reigns will he handed over to a different governing body once this last unit sells. 

Hey @John Jenkins I wouldn’t say they are being dishonest. Things change over time after they are done and gone from the project.

You could ask them to put in the bylaws to guarantee that STRs will be allowed and can’t be banned. Not sure how or if that would work.

My agent said that she's going to negotiate a clause in my contract with the selling agent and the builder to permanently allow short term rentals regardless of what transpires with the formation of the new HOA. I'm still doubtful that this would hold up considering I'd suspect that any new rules implemented by the HOA would supersede any prior agreements.

Michael does the bylaw usually supersede anything after the fact?

Just join the board! That's what I've done for my HOA.. the issue/conversation around restrictions hasn't yet come up but when it does, there will be at least one proponent of STR's at the table (me).