Can a townhome owners’ association prohibit rental of property by the owners?
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Can a townhome owners’ association prohibit rental of property by the owners?
We missed a recent meeting of our THA meeting, (Townhouse Owners’ Association” ) and rented our unit after we moved. We are up to date on all dues and assessments, and need the income until we are able to sell the unit. At the meeting, they “voted” to ban owners from renting the units. We believe this harms the value of the property by not allowing investors to buy these units as rentals. Not all landlords are slumlords. I have asked for another meeting to re-visit this issue, believing strongly that it is not right, and perhaps even illegal.
Asked on August 31, 2011 Colorado
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
From what you have written about the recent ban by the homeowner's association about having units subject to its rules not being able to be rented, the recent ban does not seem enforceable. The rationale is that under most planned unit developments such as yours unit's, there are recorded "conditions, covenants & restrictions" that govern what one can or cannot due with the real property they purchase.
These recorded documents are obtained by the buyer of such real property and reviewed before close of escrow. Many buyers have contingencies in their purchase agreements requiring approval of certain documents before close of escrow such as the recorded "conditions, covenants & restrictions."
If the recorded documents exisiting before when you purchased your unit do not preclude renting it, then you can rent it out regardless of the recent ban.
You might consider retaining a real estate attorney to assist you regarding this matter.
Good luck.
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