Texas Laws On Short Term Rentals In HOAs

Short term rentals in HOAs are becoming more common across Texas. Platforms like Airbnb and Vrbo allow owners to rent out their homes easily, but this convenience can clash with HOA rules. Homeowners associations aim to protect property values, community standards, and resident well-being. As a result, many HOAs are taking steps to regulate or prohibit short-term rentals altogether.

 

Reasons for Regulating Short Term Rentals in HOAs

Associations regulate short-term rentals to preserve the integrity and harmony of the neighborhood. While some may feel that these rules inhibit personal freedom, they serve an important purpose. They are more about protecting the community’s best interests.

Here are the benefits of regulating short-term rentals in HOAs.

 

1. Maintain Quality of Life

Temporary guests may not follow the same standards as permanent residents. A short-term renter might throw loud parties, park improperly, or ignore trash pickup schedules. Frequent check-ins and check-outs can also disrupt others. Over time, this can change the neighborhood atmosphere and make long-term residents feel uncomfortable in their neighborhood.

 

2. Limit Access by Non-Members

Homeowners associations strive to maintain a private and exclusive environment. Short-term rentals allow strangers to enter the neighborhood constantly. Some communities have gated entries or keycard systems, and repeated guest access can compromise those security features. Residents also often feel less safe when there’s a consistent stream of unfamiliar faces that appear every few days.

 

3. Preserve Property Values

Potential buyers may view a neighborhood with a high concentration of short-term rentals as unstable. Constant foot traffic, unfamiliar vehicles, and irregular occupancy can give the impression of a commercial zone instead of a residential one.

This can have a negative impact on curb appeal, deterring families or long-term buyers from moving in. Ultimately, this could potentially lower market demand and home values.

 

4. Obtain Better Insurance Coverage

Some insurance providers charge higher premiums for coverage when the HOA has a large percentage of rentals. This is because property damage and liability risks tend to increase when there are more renters, especially those who are short-term.

 

Can HOA Ban Short-Term Rentals in Texas?

Yes, HOAs can ban short term rentals in HOAs, but only if they follow the law. Texas courts require HOAs to write the restrictions into the HOA’s governing documents, particularly the declaration or CC&Rs. General language such as “residential use only” isn’t enough to ban rentals, according to Zgabay v. NBRC Property Owners Association.

If an HOA wants to ban short-term rentals, it must adopt a formal amendment and get the required vote of approval from its members. This process can vary depending on the community, but it usually needs a supermajority. Once passed, the amendment must be filed with the county to be enforceable.

 

Can an HOA Restrict Rentals in Texas?

Communities can legally restrict short term rentals in HOAs, even if they don’t impose an outright ban. That said, these restrictions must also be reflected in the recorded governing documents. Texas Property Code Section 202.006 requires HOAs to file rental-related rules with the county clerk’s office. If they are not, homeowners may challenge their validity in court.

Additionally, associations can’t apply new rental restrictions retroactively unless the declaration allows it. This means owners who were renting before the rule change may be “grandfathered in” and allowed to continue unless otherwise specified.

Boards must also avoid discrimination or selective enforcement. If the HOA restricts some owners but not others, it could face legal challenges for unfair treatment.

 

Common HOA Short Term Rental Restrictions

Short-term rentals in HOAs may be allowed, but the association can impose limits designed to protect the community. These restrictions often appear in the declaration or as separate rules. Here are the most common short-term rental restrictions in HOA communities.

 

1. Rental Caps

Some HOAs set a maximum percentage of homes that can be rented at one time, such as 10% or 25%. For example, in a 100-home community, only 10 or 25 homes may be leased. Once the cap is met, no new rentals will be approved until a space becomes available. This keeps most homeowners occupied and supports neighborhood stability.

 

2. Limited Use

Associations may limit the number of days per year a homeowner can rent out their property. For instance, a homeowner might only be allowed to rent their unit for a total of 60 days each year. This ensures rentals become more of an occasional thing instead of a full-time business. Some associations also require a minimum gap between rental periods.

 

3. Minimum Lease Terms

Many HOAs require a 30-day minimum lease term. This prevents overnight or weekend rentals, reducing disruption and discouraging party-style guests. If a homeowner rents their property for less than the minimum term, they risk fines and legal action.

 

4. Approval from the HOA

Before renting, owners may need to submit their lease agreement and tenant details for review. Some HOAs require background checks or proof of renter compliance with community rules and regulations. This process enables the board to monitor non-owner occupants and maintain the property in good condition.

 

5. Outright Ban

If the governing documents permit it, some HOAs ban short term rentals altogether. These bans often require a community vote if the rule does not exist yet.

 

Can HOA Restrict Airbnb?

Airbnb is one of the most popular platforms for short term rentals, but using it in HOA neighborhoods can often lead to conflict. While Airbnb itself doesn’t prevent homeowners from listing their properties, HOAs can regulate or ban such activity within their community.

Here are some considerations when it comes to Airbnb rentals in HOAs.

 

1. Airbnb Doesn’t Override HOA Rules

Just because a home is listed on Airbnb doesn’t mean it’s allowed under HOA policies. If the HOA restricts short-term rentals or requires minimum lease terms, those rules still apply. Airbnb’s terms of service advise hosts to follow all local laws and community rules, including HOA restrictions.

 

2. Listing a Property May Be Grounds for a Violation

Some HOAs monitor Airbnb, Vrbo, and other platforms for unapproved listings. Boards may use screenshots as evidence and issue fines. In many cases, simply advertising a home for short-term rental can be considered a violation of the HOA’s rules.

 

3. Guests May Break HOA Rules Unknowingly

Airbnb guests are often unaware of HOA-specific restrictions, such as parking rules, trash schedules, or amenity access. When guests violate these rules, the homeowner is responsible. Multiple violations can lead to penalties or suspension of rights, including voting and the use of shared amenities.

 

4. HOA may Require Disclosure of Listings

Some associations now require homeowners to register their Airbnb listings or obtain board approval. Others require the homeowner to provide a copy of the short-term rental agreement and enforce specific rules, such as noise limits and guest occupancy.

 

5. Texas Court View on Airbnb

Texas courts have held that general “residential use only” clauses do not automatically ban Airbnb rentals. To enforce an Airbnb ban, the HOA must have specific language in its governing documents. If the HOA later amends the documents to restrict Airbnb use, it must follow legal amendment procedures, including notifying members and filing the amendment with the county.

 

How to Get Around HOA Short Term Rental Restrictions

Some owners seek loopholes to circumvent restrictions, but most of these tactics ultimately backfire. Some owners may attempt to use a relative’s name or an LLC to list the property, but it is relatively easy to track ownership through public records. Others may call renters their guests, but the HOA can identify these patterns over time, leading to fines and other penalties.

In simple terms, there is no way to “get around” restrictions on short-term rentals in HOAs. If an HOA has the authority to enforce these restrictions, residents should adhere to them. After all, these restrictions help maintain the standard of living and preserve property values in the community.

 

The Final Word

Short-term rentals in HOAs are legal in Texas if the governing documents don’t restrict them. That said, HOAs can ban or limit them with properly adopted rules. Homeowners should always check their community’s governing documents before listing their property.

Graham Management provides exceptional and reliable HOA management services to Houston communities. Call us today at (713) 334-8000, request a proposal, or contact us online to learn more!

 

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