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Winston Hu
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CA - restrictions by HOA in SFR community to rent?

Winston Hu
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Posted Feb 27 2024, 22:32

Hi everyone! Newbie here trying to get started. 

I'm looking to submit a bit for a SFR in the Bay Area in a gated community with a HOA that I've heard have limits on rentals. Does anyone know if these rules still stand with new CA state laws? I'm planning on living in it with, but if I convert part a 2nd dining room and entry room into a liveable bedroom + kitchenette, will I be able to rent this out even if the HOA says there's restrictions on renting? What if there's a 25% cap of rented homes and that's met already?

I've read a few things online and I think it sounds legal/doable. I just want to double check and see what folks think here. 

Thanks so much! 

Winston 

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Chris Seveney
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Chris Seveney
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Replied Feb 28 2024, 04:58
Quote from @Winston Hu:

Hi everyone! Newbie here trying to get started. 

I'm looking to submit a bit for a SFR in the Bay Area in a gated community with a HOA that I've heard have limits on rentals. Does anyone know if these rules still stand with new CA state laws? I'm planning on living in it with, but if I convert part a 2nd dining room and entry room into a liveable bedroom + kitchenette, will I be able to rent this out even if the HOA says there's restrictions on renting? What if there's a 25% cap of rented homes and that's met already?

I've read a few things online and I think it sounds legal/doable. I just want to double check and see what folks think here. 

Thanks so much! 

Winston 


 NOT AN ATTORNEY. It is my understanding the law still allows rental caps at 25% or greater (cap cannot be lower). So if they had a 25% cap and were at 25%, then you are out of luck.

With that aside, you also have to check with building department as sometimes they may not allow permits to be issued for some of these conversions as they do not meet code. 

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Rick Albert
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Rick Albert
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Replied Feb 28 2024, 08:39

Every HOA is different. Some have no limitations, some have owner live in requirements, some allow a percentage of properties to be rented it out. It completely varies.

If you are talking house hacking, it is a fine line. Some argue that because you are living there, it isn't considered a rental. 

It sounds like you are basically turning your house into a duplex. GENERALLY, HOAs only care about the exterior. 

Unfortunately no one in this forum will be able to properly answer your question because of the unique situation. 

Something else to consider is even if you are in the right, will you get backlash from the HOA? They can make your life difficult as house politics can happen.

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Winston Hu
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Winston Hu
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Replied Feb 28 2024, 09:11

Thank you @Chris Seveney. Good point on the building permits - I'll call them on that. 

@Rick Albert - Appreciate your input, yes, I guess that's a good way of putting it... it's similar to turning it into a duplex. I just thought it'd be similar to having an in-law unit and renting it out. But yes, I didn't consider the political aspect of living in a HOA community and doing something like this.

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Rick Albert
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Rick Albert
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Replied Feb 28 2024, 10:03

I just thought about it but many of these communities were built as PUD (Planned Urban Developments). If that is the case, then these are actually classified as detached condos, not single family homes. That may play a role in your plans.

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Replied Feb 28 2024, 18:56

I would recommend obtaining a copy of the HOA Covenants and ByLaws. Most HOAs mean the entire house being rented to someone. If you are living in it that is a different scenario.