Question: We live in a small community of 21 homes in the Camp Verde area. Several of the homeowners live in Phoenix and rent out their houses. Buyers of two houses currently in escrow also live in Phoenix and intend to rent out their homes. We do not want this small community to become a community of “rental” homes. Can we amend the covenants, conditions, and restrictions of our homeowners association to prohibit no more than 20 percent of the homes to be rentals? If so, can we “grandfather” the existing leases of rental homes?
Answer: You will initially need to review the amendment language of the CC&Rs. Some CC&Rs only allow amendments at certain times. For example, there may be no amendments allowed in the first 10 years after execution and recording of the CC&Rs.
If the amendment process is followed, there should be no reason why the CC&Rs cannot be amended to limit rentals to 20 percent of the homes in the community.
Similarly, the CC&Rs can be amended to “grandfather” in existing leases of rental homes but prohibit subsequent rentals of those homes if the 20 percent limitation will be exceeded.