New Condo Rules

NEW CONDO RULES…. Many of our agents call me every month regarding this new law…they have heard that there is something out there that their buyers, tenants and sellers and landlords AND HOA Boards of Directors should know about and there is: and thanks to Tim Welberry, he sent me this article that explains things much better than I…



Please print this and keep it close by as I’m sure you will need it soon and if you are a homeowner in a condo or anything with HOA rules and Regulations, please give a copy to your HOA President or/and to the Management company…


Types of Restrictions. Beginning January 1, 2021, associations are required to amend their governing documents to conform to the following rental caps and lease terms. Failure to amend governing documents to conform to these standards by December 31, 2021 could result in a fine of $1,000. (Civ. Code §4741(f)&(g).)

1. Rental Cap. This limits the total number of units in a development that can be leased. For example, no more than 10% of the units in the development can be rented at any one time. Beginning January 1, 2021, rent caps more restrictive than 25% are unenforceable and all associations with rent caps were required to amend their governing documents to conform to 25%. (Civ. Code §4741(b).)

i. Add a Rental Cap. If an association does not have a rental cap and wants to add one, section 4740 of the Civil Code applies and the restriction would only apply to owners who purchase after the restriction is recorded.

ii. Revise an Existing Cap. If an association has an existing rental cap that is more restrictive than 25%, such as 10%, 15% or 20%, the board can adjust it to 25% to conform to new rental requirements.

2. Lease Term Requirement. Beginning January 1, 2021, provisions in governing documents requiring lease terms longer than 30 days are unenforceable. (Civ. Code §4741(c).)

3. Ownership Requirement. This restriction discourages investors from buying up units in a development and renting them out by requiring buyers of units must own/reside in their residence for a period of time (usually one, two, or three years) before he/she can rent it out. This restriction is no longer enforceable under Civil Code §4741.

4. Occupancy Restrictions. Occupancy restrictions are not affected by Civil Code §4741.

5. Room Rentals & Subleasing. Subleasing restrictions are not affected by Civil Code §4741 but room rental restrictions could be.

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