Can a Homeowner Association Prevent Me From Renting My Home?

Full question:

Can the HOA stop me from renting the townhouse that has been a rental for five years?

• Category: Real Property
• Subcategory: Homeowner's Association
• Date: 04/07/2025
• State: Wisconsin

Answer:

Whether the board acted outside their powers will be determined by the bylaws and governing documents of the association. The answer depends on the terms of the governing documents, bylaws, and contracts of the association involved. We suggest you read the terms of the bylaws, covenants and restrictions, and other governing documents carefully for procedures related to change of rules, as well as rental restrictions.

All homeowner associations are subject in some way to the rule of due process. Due process analysis typically applies where the action taken has allegedly deprived an individual of a right affecting life, liberty or property without adequate and appropriate legal process and procedures. There is a distinction between a right and a privilege. Due process issues typically arise in the context of a homeowners association when the property owner is facing a fine or other penalty or the association isn't following the procedures and rules outlined in its bylaws

In some court decisions, the following test has been used in order to determine whether or not the action of the association meets the basic legal requirements of reasonable due process:

1. Is the action taken or proposed clearly within or reasonably related to the purposes of the association?
2. Is the action clearly within or reasonably related to the association's powers?
3. Is the action taken reasonable with respect to its application and the scope of its application?
4. Has the association acted with reasonable due process in carrying out the action?

Please see also:

http://www.inman.com/buyers-sellers/columnists/renting-rooms-draws-wrath-homeowners-association