HOA Disputes – Renting or Leasing Condos Subject to the CC&Rs

Cal. Civ. Code § 4740 states the rules governing an owner’s ability to rent or lease his/her separate interest property. Section 4740(a) states that “An owner of a separate interest in a common interest development shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of any of the separate interests in that common interest development to a renter, lessee, or tenant unless that governing document, or amendment thereto, was effective prior to the date the owner acquired title to his or her separate interest.”

Thus, owners seeking to rent their separate interest unit should first consult with their CC&Rs and governing rules and ensure the rental of the unit does not violate any CC&R provisions or association rules assuming that said rules were in place prior to the owner taking title. If an owner seeking to rent the separate interest unit acquired title prior to an HOA adopting plans governing rentals, then the owner will not be subject to those rules adopted after title was acquired.

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