Many lawsuits challenging community associations’ efforts to enact or enforce rental restrictions don’t do very well in court. In fact, courts have usually upheld such lease restrictions – including limits on lease terms, occupancy and usage as well as outright bans.
The problems usually arise when governing documents are amended and owners find they can no longer rent their units, or can’t rent them for fewer than 12 months or rent them to five co-eds. To the uninformed owner caught short by a covenant amendment, the prevailing opinion is that, when you bought the home, your governing documents permitted such changes. In other words, owners should know that documents – and the activities they allow – can change.