Rental Restrictions for Homeowners’ Associations

Apr 23, 2021 | Homeowner's Associations, Real Estate Law

With the increased prevalence of short-term rentals, homeowners’ associations may consider adopting restrictive covenants that prohibit rentals within the association. However, many associations do not realize there are very specific Idaho statutes that prohibit certain rental restrictions. Before adopting a rental restriction, make sure that both the substance and process comply with Idaho law. 

Under Idaho Code Section 55-115, homeowners’ associations are prohibited from adding, amending, or enforcing a restrictive covenant that restricts the rental of any property within the association for any amount of time, unless expressly agreed to in writing by the owner of the property. This means that, if the rental restriction is intended to apply against all owners within the association, every owner must physically sign off on the rental restriction in writing.

Most restrictions only need to comply with the homeowners’ association governing documents (i.e., Declaration of Covenants, Conditions, and Restrictions, Articles of Incorporation, and Bylaws). This usually means that new restrictions only need to be adopted by a majority of the owners. This is not the case for rental restrictions. Rental restrictions are unique and must comply with the procedure in Idaho Code Section 55-115.

In addition, some associations attempt to rely on restrictive covenants prohibiting “commercial activity” to restrict rentals within the neighborhood. For our analysis on why “commercial activity” restrictions are insufficient to prohibit rentals, see our blog post here.

If you need assistance navigating Idaho law concerning rental restrictions for your homeowners’ association, please contact our office.

This blog post is designed to provide general information on pertinent legal topics. The statements made are provided for educational purposes only. This blog does not provide legal advice. This blog does not create an attorney-client relationship between you and Smith + Malek, PLLC. If you want to create an attorney-client relationship and have specific questions regarding the application of the law to your own circumstances, you should contact our office.