Can a townhome owners’ association prohibit rental of property by the owners?

UPDATED: Aug 31, 2011

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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