If you own a home in the Phoenix metro area and are considering turning it into a rental property, there's a step many first-time landlords skip entirely: checking whether their HOA allows it.
A large percentage of homes in communities like Scottsdale, Gilbert, Chandler, and Peoria are governed by homeowners associations (HOAs). These associations often include rental restrictions that can significantly impact your ability to lease your property.
Homeowners associations govern thousands of neighborhoods across the Phoenix metro. Many of these homeowners associations have conditions and restrictions that outline rules for maintenance and decoration of homes in the community. Some even outline guidelines for renters.
Age restrictive +55 communities like Sun City and Sun Lakes are notorious for having the most restrictive covenants. High-end, private communities such as Silverleaf in Scottsdale or Anthem Country Club in Phoenix often feature heavy operational rules. Due to shared walls in dense developments, townhomes and condos can have that must be "owner-occupied" only, completely banning any rentals.
If you are thinking of turning your home into a rental property, it's wise to look at your CC&Rs first. What are the rental rules in your community? Do you have to get approval from your HOA before showing your home or before bringing in a new renter?
Learn What Your CC&Rs Allow and Approval Requirements
Every HOA operates under a set of governing documents called the CC&Rs (Covenants, Conditions, and Restrictions). This is the first place to look when you want to understand your rental rights as a homeowner.
Most CC&Rs outline:
Property maintenance and appearance standards
Architectural and landscaping rules
Rental restrictions and leasing guidelines
Tenant approval requirements (in some communities)
What you're looking for:
Are rentals allowed in my community?
Do I need HOA approval before leasing?
Are there limits on the number of rentals in the neighborhood?
Are short-term rentals allowed or restricted?
Short-Term Rentals vs. Long-Term Rentals
As previously mentioned, AZ House Bill 2672 was passed in an effort to limit local municipalities from restricting short-term rentals; however, just because the city allows short-term rentals, does not mean that your HOA will also allow them.
Even if a city allows Airbnb or Vrbo rentals, your HOA may still:
Prohibit short-term rentals entirely
Require prior written approval
Restrict rental duration (e.g., 30-day minimum stays)
Limit guest turnover frequency
Communities such as DC Ranch and McDowell Mountain Ranch have strict rental restrictions, including prohibitions on short-term leases and vacation rentals ranging from 30 days to 6 months. Violations can result in significant penalties. For example, McDowell Mountain Ranch may impose fines of up to $350 per day. In some cases, homeowners may also be required to terminate a lease and remove tenants, potentially creating additional legal and financial liabilities.
What Violations Can Actually Cost You
HOA violations can result in more severe consequences than simply your aggravation. Such violations can result in daily or per-occurrence fines; liens placed on the property; legal fees to enforce the HOA's covenants, conditions and restrictions; and much more.
Common penalties include:
Daily or per-incident fines
Legal fees for enforcement actions
HOA liens placed against your property
Collection costs added to unpaid fines
Required removal of tenants or lease termination enforcement
Why First-Time Landlords Get This Wrong
While renting out homes is quite different from selling them, there are some similarities when it comes to the amount of coordination and involvement required in the process of preparing a home for new renters. This is why so many homeowners who are new to the rental market hire a property manager to help them with the process.
When an owner hires a local property manager such as Coastal Realty Services, the property manager builds the compliance with the HOA restrictions into the onboarding of the rental property for the new tenant and coordinates all of the necessary documentation and approvals.
They also ensure the lease terms comply with the community's CC&Rs. Beyond that, a good property manager stays actively involved in the day to day management of your investment, not just when a tenant moves in or out, but throughout the entire rental period.
What Happens After Move-In
Even after your property is rented, responsibilities continue. There are many things that a landlord must handle with a tenant.
Landlords must still manage:
Tenant communication and issue resolution
Maintenance and repair coordination
Lease enforcement and renewals
HOA rule compliance throughout tenancy
A property manager can help you with all of these issues and help you become a good landlord while earning a return on your investment.
To find out more about Phoenix property management visit our Real Estate Brokers of Arizona FAQ's.
If you're planning to rent out a home in the Phoenix metro area, start with these steps:
Review your CC&Rs thoroughly
Confirm whether rentals are allowed
Understand lease length and approval requirements
Check for short-term rental restrictions
Consider professional property management support
HOA rules in Arizona can significantly impact your rental strategy, but with proper planning, you can avoid costly surprises and protect your investment.
