a home in a area that prevented me from renting a house if I had to to make payments. So that
could cause real estate values to suffer once the word got out that that subdivision does not allow
house to be rented or has a cap on it.
I live in a neighborhood where the HOA is no longer allowing homeowners to rent thier homes. My home is on the market for more than a year and I decided that I will rent my home in the spring. The HOA can decide to go along with it or I can add one more foreclosure to the community.
that being said, restricting rentals in this market will do more harm to your community. Home owners that do rent thier homes need to take responsibility for thier property and maintain thier yards and home exterior with the same pride the had when they were living in the home. The landlords need to ensure that thier tennants also take pride in the home as well.
Before you implement this, I would urge you to consider both sides of this. While it may seem like a good thing as a high percentage of rentals can devalue a neighborhoods, in today's real estate climate, I've seen communities actually petitioning to remove such a provision from their covenants because the restriction on rentals was actually increasing the foreclosure rate. Many times, if a homeowner is having trouble making their payments and they can't sell their home, they can rent it out which saves them from foreclosure. Believe me, the amount that another foreclosure on your street devalues your neighborhood is infinitely worse than the devaluation caused by an additional rented property. I'm not saying not to do it. I'm just saying - thing of the pros and cons and make an educated decision that is in the best interest of all of the homeowners. If you need references for an attorney, contact me and I'd be happy to provde a few for you.
also: your HOA should have a a lawyer under rentention and would be able to answer that question.
This is a good and important move on your part!