Your HOA and Vacation Rentals: Rules, Risks, and Responsibilities

July is National Vacation Rental Month, and with platforms like Airbnb and Vrbo booming, it’s easy to see the appeal of earning extra income from short-term guests.

But for homeowners in HOA communities, listing your property isn’t just a personal choice - it’s a community issue.

From insurance risks to neighborhood disruption, short-term rentals can come with serious consequences if you don’t understand the rules. Before you post that listing, here’s what you need to know to stay compliant and keep your neighbors (and your wallet) happy.

Getting Started

Before you start writing your property description and snapping photos of your guest room, there’s one crucial step: Check your governing documents.

Your Declaration or CC&Rs (Covenants, Conditions & Restrictions) are your roadmap. 

These documents often outline exactly what kind of leasing is allowed, if any. 

And yes, many HOAs prohibit short-term rentals altogether or place strict limits on them. Others might allow it but require registration, guest info, or specific lease lengths such as 30+ days minimum.

Why All the Concern?

While short-term rentals might feel like a personal decision, in an HOA, it’s a community decision, and your guests become everyone’s guests! 

Here’s why many HOAs draw a hard line:

🚫 Noise, traffic, and nuisance complaints

🚫 Overuse of amenities and common areas

🚫 Security concerns with frequent guest turnover

🚫 Increased trash and parking issues

🚫 Risk to the HOA’s master insurance policy

In fact, once short-term rentals make up more than 10% of homes in a community, insurance carriers may increase premiums, or refuse coverage altogether. That affects everyone.

Even if your documents are vague on the issue, don’t assume you’re in the clear. 

Many boards are tightening rules, updating policies, and cracking down on violators with hefty fines and enforcement measures.

If your HOA does allow short-term rentals, expect to see regulations like:

✔️ Required guest registration

✔️ Maximum or minimum stay limits

✔️ Noise/parking rules

✔️ Short-term lease agreements

✔️ Owner accountability for guest behavior

And let’s not forget - you may also need to apply for local permits, pay occupancy taxes, or comply with city ordinances, depending on where you live.

The Bottom Line

Don’t let that vacation rental listing become a community liability or a legal issue. Talk to your HOA board or management company, review your governing documents, and make sure you’re playing by the rules.

After all, no one wants their passive income to turn into a full-time problem.

Need help navigating short-term rental policies in your community? RowCal is here to support boards and homeowners alike with clear guidance and proactive management. Learn more.