According to Phoenix Agent Magazine, about one in four homes in the country is part of a homeowners association (HOA). However, that number rises to one in three in Arizona, making the Grand Canyon State's HOA rates among the highest in the nation.
If you also belong to a Phoenix homeowners association and are on its board, one of the issues you'll likely encounter involves rentals in an HOA community. Should your community allow them, or would it be best to restrict them?
In this HOA community rental guide prepared by the PMI Phoenix Valley team, we'll explore how Phoenix HOA boards can legally and successfully navigate such issues.
Understanding Arizona Laws on Rentals in an HOA Community
Understanding state laws governing HOAs or planned communities is one of the most crucial steps to navigating rentals in your community. There are several, including:
- Arizona Revised Statutes Section 33-1806.01
- Arizona Revised Statutes Section 33-1260.01
- Arizona Revised Statutes Section 9-500.39
ARS § 33-1260.01 and 33-1806.01
Under ARS § 33-1260.01 and 33-1806.01, a unit or property owner may use their properties as rentals unless prohibited in the community's declaration. If the declaration allows rentals, the owner must rent their property in compliance with its rental time-period restrictions.
So, check your community's Declaration of Covenants, Conditions, and Restrictions (CC&Rs) to see if it prohibits rentals. If it doesn't, the HOA board must allow unit or property owners to rent their properties.
ARS § 9-500.39
Under ARS § 9-500.39, which the state revised in 2022, no city or town may prohibit vacation or short-term rentals. A recent Arizona School of Real Estate and Business (AZREB) post explained that many of the amendments HOAs made to short-term rentals before 2022 are ineffective and void.
Amending the CC&Rs
Even with the revised Arizona Statutes, your community can still amend the CC&Rs to include rental conditions and restrictions. However, the amended declarations must comply with all applicable laws.
To ensure your community doesn't break any law, have the HOA board consult a lawyer and a professional HOA manager. They can help your community make careful amendments that won't make members mad enough to leave the HOA.
Managing Rentals in an HOA Community
If your community decides to or must allow rentals, consider hiring a community manager specializing in HOA rental management.
HOA managers have an in-depth understanding of federal, state, and local laws. They also implement effective Phoenix rental strategies, such as HOA rental property valuations, marketing, and tenant screening. They'll keep your community safe, well-maintained, thriving, and compliant with all applicable housing-related laws.
Enhance Your Community With PMI Phoenix Valley's Help
Now you know that navigating rentals in an HOA community in Phoenix is full of legal complexities. For this reason, it's best to delegate their management and oversight to a professional, full-service community and association management company.
PMI Phoenix Valley is one such company. We're a locally owned and independently run firm proud to be part of PMI, a larger franchise that has and continues to perfect the association management industry for over 20 years. Our owner and operating manager, Jim Bell, brings years of knowledge, experience, and leadership skills he acquired while supporting Fortune 500 companies.
Reach out to us today so we can get started on your free consultation!
