Over the past few years, the rise of platforms like Airbnb, Vrbo, and Booking.com has turned many homeowners into part-time landlords. Short-term rentals (STRs) have become an attractive way to earn passive income, especially in vacation-friendly areas. But if you live in a Homeowners Association (HOA), the rules are changing — and fast.
Whether you’re renting out your property or living next to one that’s frequently rented, it’s important to understand how the short term rental trend is reshaping HOA communities.
Why Are Short-Term Rentals on the Rise?
The short-term rental can be attractive to owners for a number of reasons:
- Supplemental income for homeowners
- High demand from travelers seeking “home-like” stays
- Remote work flexibility, which fuels longer stays in residential areas
But while the benefits are clear, harmony with the association and it’s residential character should be considered.
How HOAs Are Responding
Many associations are working to balance homeowner rights with the need to maintain a safe and cohesive community environment. If your HOA is seeing more short-term rental activity, consider the following actions:
Amend the Governing Documents
To effectively manage short-term rentals, HOAs should work closely with legal counsel to update their governing documents — specifically the CC&Rs (Covenants, Conditions & Restrictions). These updates should clearly define what constitutes a short-term rental and establish enforceable guidelines for how they are permitted within the community. In some cases, associations may choose to set minimum lease durations (such as a 30-day minimum) or require the tenant to acknowledge the association’s rules and regulations. If the governing documents require it, any changes to these rules may also necessitate a supermajority vote of the membership, so it’s important to follow the proper amendment process.
Adopt or Update Rental Policies
To provide flexibility and allow for easier updates over time, HOAs should consider adopting formal rental rules and regulations separate from the CC&Rs. These standalone policies can be adjusted as needed without going through the lengthy amendment process required for governing documents. They can address key aspects of short-term rental activity and help maintain community standards. Important provisions might include requiring homeowners to register rental properties and provide guest information for short-term stays. Associations can also establish occupancy limits and quiet hours to minimize disruptions. To ensure compliance, these rules should be clearly enforceable through fines or other measures outlined in the association’s enforcement policy.
Implement a Permit or Application Process
To maintain accountability, HOAs can require homeowners to apply for short-term rental (STR) use through the association or submit a valid city-issued permit, if applicable. This process helps the HOA track rental activity, ensure compliance with local laws, and identify properties operating as STRs within the community.
Coordinate with Local Municipalities
To ensure your Homeowners Association (HOA) operates within legal boundaries, it’s essential to collaborate with city or county officials. This collaboration helps you understand local zoning laws, licensing requirements, and enforcement mechanisms. By engaging with these officials, your HOA can stay informed about any changes in regulations and ensure that its operations align with municipal expectations.
Equally important is reviewing your HOA’s governing documents to confirm they do not conflict with local ordinances. Conflicting rules can lead to legal challenges or enforcement issues, so aligning your HOA’s policies with local laws helps maintain compliance and community trust. This proactive approach supports smoother governance and reduces the risk of disputes.
Strengthen Enforcement Mechanisms
To maintain order and consistency within a community, it’s important that the HOA’s governing documents clearly define what constitutes a violation and outline the corresponding penalties. This clarity helps ensure that all residents and tenants understand the rules and the consequences of breaking them, which can prevent misunderstandings and disputes. Clearly articulated policies also provide the HOA with a solid foundation for enforcement actions.
When violations occur repeatedly, the HOA should be prepared to enforce the established penalties, which may include fines or legal action. Consistent enforcement not only reinforces the authority of the HOA but also demonstrates fairness and accountability to all members. Taking appropriate action against repeat offenders helps preserve the integrity of the community and encourages compliance from all residents.
Educate Homeowners
To help homeowners understand and comply with short-term rental (STR) policies, it’s important to foster clear communication and proactive education. Hosting town hall meetings provides a valuable opportunity to ask questions and voice concerns in a structured environment. These sessions can help demystify complex regulations and reinforce the rationale behind the HOA’s rules.
In addition to live discussions, distributing easy-to-understand guides or FAQs outlining the association’s rental policies ensures that homeowners have a reference they can consult at any time. Encouraging residents to report concerns through formal channels—rather than airing grievances on social media—helps maintain professionalism, ensures issues are addressed appropriately, and protects the community’s reputation. This approach promotes transparency, accountability, and a more cohesive neighborhood culture.
What Homeowners Need to Know
If you’re a homeowner considering short-term rentals or living in a community that allows them, make sure you:
- Read your HOA documents carefully
- Stay engaged with your board and community discussions
- Follow city licensing requirements
Short-term rentals can generate income, but they also introduce risk. HOAs must proactively address these issues with clear, enforceable policies and community-wide communication. The goal isn’t to create unnecessary restrictions, but to maintain the quality of life and property values for all homeowners.
