Foreclosure in 89139>Question Details

Brett, Home Buyer in Las Vegas, NV

HOA Lease Restriction

Asked by Brett, Las Vegas, NV Tue May 8, 2012

I am looking for some advice regarding my HOA's restriction against leasing. My HOA restricts homeowners from leasing or renting their homes. This restriction is absolute with no restrictions. I recently lost my job and will likely be unable to keep up with my mortgage payments for much longer. I have been offered a temporary job (1-year) out of state that I would like to accept, but I am stuck with no options regarding my home. I would like to rent it out so that I can come back to it after my work is complete, but the HOA is refusing to let anyone lease out their home for any amount of time. Is there anything I can do? Are my only options foreclosure or short sale?

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My wife and I have dealt with this in the past and we would like to speak with you and review your HOA docs. At that point we can make recommendations of the direction to take. You would qualify for “hardship” and “special circumstances”. We have an attorney on retainer we can consult with as well. If we have to short sale we can take care of all the details for that if need be. Please call or email us asap so we can start with the review of your HOA docs. If you want to see what's listed in your area, please use our web site to do search. Thanks, Kim and Matt

Matthew and Kim D’Ercole
One Source Realty and Management
Listing and Short Sale Specialists
Residents since 1976
Cell - 702.501.0973

Website -
1 vote Thank Flag Link Tue May 8, 2012
I agree with Bridget and Rhonda. Although, short sale may not be your "only" option; it may very well be your best option.

Even if you were going to stay here in Las Vegas, if you are upside down with a true hardship (such as the one you describe), short selling your home might be your best option.
Let's consider your options. Even if you were able to somehow convince your HOA board to make an acceptation, the net result is that you’re able to continue to service an upside down piece of property that could take years (and sometimes decades), to get right side up. And then, what have you really accomplished. The road is long and hard, but the rewards are few and meager. And, if you have to hire an attorney to secure this “very unattractive” result; then, you can add that to the negative column too.

Alternatively, if you were able to get the property short sold (with a waiver of the deficiency), now you have something of real value. The albatross that would otherwise be hanging around your neck for the next (who knows how many?), years is gone. Let that sink in for a minute. You are debt free. You are even. And, don’t forget, this year maybe your last year that you will be able to short sell your home and be forgiven the normal and usual tax consequences that would customarily accompany such an event, (typically, you have to pay taxes on forgiven income as though it was passive income received). If the Debt Forgiveness Act is not extended, and you end up having to short sell or get foreclosed on next year anyway, you may regret not having done the deed this year.

Keep your credit nose clean for the next year while you are fulfilling your job responsibilities out of the state, and come back to Vegas a "Qualified Borrower" ready to purchase a home at TODAYS market prices. You would probably be able to pick up a smoking hot deal in your same condominium complex for significantly less on monthly mortgage payments. Or, find a much nicer condo (or home), for the same mortgage payment. I don't think I am over selling the benefits here. I would (of course), need to know more about the particulars of your situation, but since you are a resident of Clark County (one of the hardest hit real estate correction markets in the country); I can be pretty confident that you are going to be far better off pursuing the short sale option instead of any other.

Give me a call, and let's talk about your options.

Robert K. Peddicord
Real Estate Consultant
Prudential Americana Group, REALTORS®
Direct: (702) 218-3974
E-Fax: (702) 317-3371
Email :
Web :

871 Coronado Center Dr.
Suite 100
Henderson, NV 89052
0 votes Thank Flag Link Thu May 10, 2012
Im sorry to hear of your unfortunate circumstances. Your only option is to change (thru nthe HOA Board of Directors vote) the HOA Rules. This could be quite a lengthy process. If your home is more than 20% upside down you may want to consider a short sale. It will free you from tremendous burdensome debt and avoid the headache of renting your home. If you end up moving back to Las Vegas after one year you could always buy another home at today's market value. Message Or call me for more details. I've helped hundreds of homeowners over the years overcome situations similar to yours.
Take care.
Nichole LaVigne
Prudential Americana Group Realtors
0 votes Thank Flag Link Wed May 9, 2012
Hi Brett,
You might want to write a hardship letter to the association and explain your situation. I would let them know that you lost your job and forced to move for one year in order to be able to keep your house and not loose it to the bank you MUST lease it in order not loosing it to the bank. In your case, This is a huge responsibility the association is taking by not allowing you to lease your house . There are many associations that have rent restrictions, but in your case you can loose your house with these restrictions!!

In my opinion,  short sale is the last alternative that I would take and might hold the association responsible. Seek an attorney's advise if you can not come to terms with the association.

Good luck

Rena Levy
Realty Executives of Nevada
Web Reference: Http://
0 votes Thank Flag Link Wed May 9, 2012
Hi Bret, I think you have great advise already from many other professionals on this page.
You do have options, and certainly can find help if you reach out to the right people.
God luck!

Lorena Petersen
0 votes Thank Flag Link Tue May 8, 2012
Hi Brett,

The first thing I would do is start going through your HOA package and review exaclty what the Lease Restriction clause says. The clause pertaining to Leasing restrictions should be somewhere in the CC&R's, Bylaws, or Rules and Regulations. Maybe the HOA company can tell you under what section you can find that clause. This restriction is not uncommon. Usually it has to do with how many homeowners to renters live in that community and the HOA has a ratio they are trying to keep or maintain. Once it reaches a certain percentage of renters living in that particular community, Homeowners are not allowed to rent their properties out. The reason behind this, is they feel that a Homeowner will take care of and maintain their home more than a renter would. However there are some HOA's that do not let renting at all.

Your next option would be to Short Sale your home. You have a couple things working in your favor to help you show a Hardship in order to Short Sale your home. Which is you lost your job and you have to transfer out of state in order to gain employment. The Banks and the Government are really doing everthing they can to get people to short sale. A short sale will not effect your credit as negatively as a foreclosure and you will be able to purchase a home again in the near future.

As far as letting the property just go into foreclosure. I believe that should be a last resort.

Let me know if there is anything else I can do to help you.

Best of Luck,

Chris Harrison
Barrett & Co., Inc.
2885 S. Jones Blvd
Las Vegas, NV 89146
(702) 592-9510 ph
0 votes Thank Flag Link Tue May 8, 2012
There may be exceptions to the rental restrictions for a financial hardships which it sounds like you may have. Or there may be other ways around the rule like conveying partial ownership to the would-be tenants, but that's probably not a practical solution...

You may want to consult an attorney to review the laws and the CC&Rs to see if you have any other options, but before you spend the money on an attorney, you may want to give me a call to discuss your situation. It might not make sense to pay an attorney or go through a battle with the hoa if you're only delaying the inevitable...a short sale or foreclosure.
0 votes Thank Flag Link Tue May 8, 2012
Are you upside down on the house ? if so short sale may be your best option all the way around. I work with short sales alot and I would be more than happy to talk to you about it but no one can really recommend you do a short sale without knowing all the details.Most all of us agents are qualified and are experts with short sales,since that is basically all we do. Please feel free to email me or call me, I would love to go over your options. or 702-239-6900
0 votes Thank Flag Link Tue May 8, 2012
There are some HOA's that do not allow leasing. I do not know of any way around it. You may want to check with an attorney and see if there are any loopholes. I work with Attorney Miguel Lopez (702-987-3030 ) on issues with short sales. He may be able to advise you. If I can help please let me know.
Thank You
Suzie Marquardt
Realty One Group
0 votes Thank Flag Link Tue May 8, 2012
Regrettably, foreclosure or short sale are your options. You do have a genuine hardship, so a short sale is a good option. Thanks to changes in tax law at the end of the year, the time to start is NOW.

I have a SFR (Short Sale and Foreclosure Resource) and would love an opportunity to see your home and show you how I can help.
0 votes Thank Flag Link Tue May 8, 2012
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