There’s nothing wrong with doing whatever’s in your power to protect your investment, including your investment in a short-term rental. Depending on the regulations of your homeowner’s association (HOA), you may not be allowed to maintain a short-term rental, like a VRBO or Airbnb, unless, of course, you are protected by a grandfather clause. Grandfather clauses can protect short-term rentals in Arizona, and Harper Hall PLC can show you how.
Hiring an HOA attorney may be the wisest move you can make for yourself in an HOA case. If you’ve invested heavily in a short-term rental and are counting on that investment to pay off, interference from your HOA can be severely detrimental. Arizona HOA laws can be confusing to navigate on your own. Kevin Harper and his legal team have almost three decades of experience working with clients across Arizona who were in situations similar to yours. He can work hard for you, too.
Grandfather Clauses and Short-Term Rentals
If you choose to move forward with legal action against your HOA for a short-term rental around Lake Havasu, your dispute is typically handled in the Mohave County Superior Court. There are over 3,000 HOAs in the state, with 67% of residents claiming positive experiences.
Before pursuing legal action, you may want to look into whether your situation is explained in the Arizona Planned Communities Act. While state law protects short-term rental owners from any city or municipal bans, HOAs are generally legally permitted to restrict or ban rentals if that restriction is explicitly stated in the recorded Declaration of Covenants, Conditions, and Restrictions (CC&Rs).
If the CC&Rs already allowed rentals or said nothing about them when you purchased the property, a newly passed restriction may not be enforceable against you without your consent. This is what’s known as a grandfather clause, and it can serve as protection against HOA enforcement in many cases. Here are some important ways that you can safeguard your investment if you are looking to buy a short-term rental on Lake Havasu:
- Conduct due diligence. It’s always recommended that you do your due diligence whenever you’re looking to invest significant capital or planning to upgrade an existing rental. Make sure you get a copy of the most recent, updated CC&Rs for the community you are looking to invest in. Hire an HOA lawyer to look over these regulations and see if they expressly restrict or ban rentals of any kind.
- Review amendment clauses. In many cases, the HOA board cannot amend its CC&Rs without getting unanimous consent from every resident in the neighborhood. However, every HOA is different. Make sure you review what percentage of owners is required for a vote to amend the CC&Rs. If the HOA attempts to undermine you or amend the regulations without a vote, challenge them explicitly.
- Register with the city. Make sure you are totally compliant with the local municipality regulations of Lake Havasu City. The city may require rental owners to obtain a local license, display contact information, and follow guidelines regarding trash pickup, noise limits, and parking. The last thing you want is a noise or public nuisance complaint to make the HOA look reasonable by comparison in Arizona.
FAQs
Are HOA Rules Regarding Rentals Legally Enforceable in Arizona?
Rental restrictions need to be enacted as part of the community’s initial regulations, not through an administrative vote. Recent court decisions have also shown that HOAs cannot just decide to make new rules that affect the entire community without first getting sufficient consent from all residents and even then, such changes require that owners had sufficient notice of potential amendments when they purchased their properties.
What Can the HOA Do If I Violate Their Rental Policy?
Under the Arizona Planned Community Act, HOAs have multiple enforcement methods at their disposal. They can:
- Issue you a hefty fine.
- Send an attorney demand letter.
- Petition the ADRE.
- File a legal claim in superior court to force an injunction that would halt your rental permanently.
However, you have the law on your side as well. An HOA lawyer can provide you with options and challenge the HOA’s authority on this matter.
Can an HOA Force Me Out of the Neighborhood for Having a Rental in Arizona?
No, an HOA cannot physically force you out of their neighborhood for having a rental property in Arizona. They can’t make you sell your home, and they can’t evict you. What they can do is levy substantial fines on your property and pursue legal action to force compliance. Whether they can stop you from renting your property depends entirely on the rules that were already in place when you moved in.
Be Sure to Hire an HOA Lawyer Today
Dealing with a confrontational or hostile HOA can be a social nightmare that can result in heavy fines and additional complications. However, that doesn’t mean you have to bend to their will and close your rental, especially if you’re legally in the right. At Harper Hall PLC, we can guide you through the options available to you and protect your interests. Contact us to speak with someone who can help.
