Question:
What information can you share about rental caps set up by property owner associations? I am on the board and we are interested in learning whether a rental cap is in our best interest as a community of owners of 54 units.
I will share any information that you would suggest or access any websites or links that you provide. Thank you very much.
– Linda
Answer:
Hi Linda,
Generally speaking, homeowners associations can legally impose rental caps within their neighborhoods in Texas. However, make sure to review the governing documents to verify whether or not the board can prohibit rentals. There may be provisions stating otherwise, in which case the board cannot impose a rental cap.
If there are no prohibitions in the governing documents, there are several factors to consider. Firstly, rental caps protect property values. Tenants are less likely to obey the rules so fewer tenants may mean a more manageable and peaceful community. It can also keep the community more secure as fewer strangers enter the community.
Without a rental cap, the community may eventually be composed solely of renters. This can compromise the sense of community the residents experience and HOA members may not be as invested in the community’s growth or preservation. However, the rental cap should be reasonable. The board should also hear out the needs and wants of the members and consider them in the decision.
Here are some resources you may find helpful:
https://www.hoamanagement.com/
https://www.
https://emspm.com/rental-
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
