Q: Can a California HOA have a “no rental” policy? Our HOA is small, and an owner recently expressed interest in renting out their unit. In my experience, renters don’t have the same commitment to the community as owners do. — J.R., Redondo Beach

A: Civil Code Section 4740, enacted in 2012, provides, among other things, that rental prohibitions could only apply prospectively to owners who bought their HOA property after the prohibition was put in force. This reinforced the notion that HOAs could completely ban rentals, with such bans only applying to subsequent buyers into the HOA.

In 2021, the Legislature enacted Civil Code Section 4741, banning complete rental bans.

However, Section 4741(b) allows a limit or “cap” on rentals of no lower than 25% of the residences. Since Section 4740 i

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