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Short-term and investor rentalsLesson 14 of 21

Academy/Rentals & Leasing

Airbnb/VRBO issues

Short-term rental platforms did not create new law, they just exposed what your declaration already says about leasing.

Yes, most HOAs can restrict or ban Airbnb and VRBO rentals, but only through the declaration itself, not a board rule alone. An older declaration that broadly protects leasing rights can accidentally block a later short-term-rental ban. State law varies sharply, and your city's short-term-rental ordinance is legally separate from your HOA's authority.

01

Why an old leasing clause can block a new short-term-rental ban

Short-term rental platforms did not rewrite your governing documents, they just started testing what those documents already say. Many declarations, especially older ones, include broad language protecting an owner's right to lease, written decades before Airbnb existed.

In JBrice Holdings, LLC v. Wilcrest Walk Townhomes Association, the Texas Supreme Court ruled that a short-term rental booked for a weekend is still legally a lease. The association's declaration promised owners no restriction on leasing, so the board's rule banning short-term rentals conflicted with that promise and could not stand.

"There shall be no restriction on the right of any townhouse owner to lease his unit."

Source: JBrice Holdings, LLC v. Wilcrest Walk Townhomes Association, Inc., Supreme Court of Texas

Before drafting any short-term-rental rule, read your own declaration's leasing section first. A clause protecting leasing broadly, written for a different era, can defeat a rule your board assumes is obviously within its power.

02

The rules change completely at the state line

Whether, and how, an association can restrict short-term rentals depends on the state your community sits in. A few examples from the research base:

StateWhat the research shows
Florida HOAs may amend governing documents to regulate or prohibit rentals under six months, or cap rentals to three times a year, and this specific restriction binds all owners, even those who bought years earlier and never consented. Confirm against Fla. Stat. 720.306(1)(h) and your own amendment history.
Texas Appellate courts have upheld new short-term-rental rules where the declaration's amendment process was followed and owners had notice, but JBrice shows old leasing language can still defeat a rule. Confirm your declaration was properly amended.
California Associations may prohibit rentals of 30 days or less separately from the general 25 percent rental-cap floor, but an owner who held title before the restriction took effect is generally protected. Confirm the restriction's effective date against your purchase date.
Nevada The base rule keys restrictions to what the declaration required the day you bought, and a 2025 legislative change may expand board authority tied to lender requirements. Confirm the current, amended text of NRS 116.335 directly.

Arizona and several other states have their own frameworks, described in secondary sources rather than confirmed statute text here. Verify the exact statute and any recent case law with local counsel before citing a specific section to your board.

03

Restricting short-term rentals: what actually works

A short-term-rental restriction almost always needs to live in the declaration, not just a board resolution. Most jurisdictions treat leasing as a property right, so a rule the board can pass unilaterally, the board can be argued to have never had authority to create in the first place.

Tested designs from other associations: capping the number of homes operating as short-term rentals at once, requiring a minimum stay, or exempting owners already renting short-term before the new rule to reduce disputes over retroactive enforcement. None of these designs are legally required, they are patterns, not a template you can copy without checking your own state and declaration.

Do not assume your city or state settled the question for you. A state law blocking cities from banning vacation rentals only stops local government, it says nothing about your association's own contractual authority under the declaration.

Check yourself

Answer before you read the explanation, recalling it is what makes it stick.

Your board passes a rule banning short-term rentals, but the declaration says owners face no restriction on the right to lease. What happens to the rule?

A Florida HOA amends its documents to cap rentals at three times a year. An owner who bought their home ten years earlier, and never voted for the amendment, objects. Are they bound?

A state preempts cities from banning vacation rentals. Can the HOA still enforce its own declaration restriction on short-term rentals?

Sources

Rentals & Leasing

Ready to draft the actual rule? See how to amend your declaration to add a short-term-rental restriction that will hold up.

Whether your HOA can restrict Airbnb and VRBO rentals, and how, depends on your state's statutes, your declaration's existing leasing language, and any local short-term-rental ordinance where you live.