Can an HOA impose restrictions on leasing or renting of properties?

Yes, an HOA in Delaware can impose restrictions on leasing or renting of properties. The Delaware Planned Community Act, which governs Homeowners Associations in Delaware, set out the framework by which an HOA can impose restrictions on leasing or renting of properties. Specifically, the Act allows an HOA to prohibit or limit the use of a unit for rental or other non-residential purposes. Additionally, the Act allows an HOA to impose reasonable restrictions on the number of units that may be leased or rented. These restrictions may include, but are not limited to, the type of use, the length of the rental period, the number of people living within the rental unit, the type of tenant, and the type of tenant application process. For example, an HOA may restrict the use of a unit for short-term rentals, such as Airbnb or VRBO, or may require that tenants undergo a background and credit check before being approved for residency in the community. More importantly, an HOA in Delaware must clearly indicate its restrictions on leasing or renting of properties before a prospective purchaser purchases a home in the community. Such restrictions must be included in the governing documents of the HOA, such as the Declaration and Bylaws. In fact, the Delaware Planned Community Act requires that the governing documents of an HOA shall provide for a reasonable process for the adoption and amendment of reasonable restrictions on the leasing or renting of units. Therefore, it is important to understand that an HOA in Delaware can impose restrictions on leasing or renting of properties. Such restrictions must be in compliance with the Delaware Planned Community Act, and must be clearly stated in the governing documents of the HOA.

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Can an HOA impose restrictions on leasing or renting of properties?

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