The General Rule
Rental restrictions are one of the most impactful CC&R provisions, affecting investment strategies and property values. Common restrictions include minimum lease terms (6 or 12 months), maximum percentage of units that can be rented (often 20–30%), application and HOA approval of prospective tenants, background check requirements, and prohibition of subleasing. Rental caps also affect mortgage eligibility — Fannie Mae and FHA have rules about investor ratios in condo communities. HOAs cannot impose restrictions that violate the Fair Housing Act.
Texas-Specific Rules
Texas courts have generally upheld rental restrictions if properly recorded in CC&Rs. Post-purchase amendments to rental restrictions are more complex — consult the specific amendment date versus your purchase date.
Why Your CC&Rs May Be Different
State law sets the minimum floor — but your community's CC&Rs, bylaws, and board-adopted rules may be stricter, may include exceptions, or may have been amended recently. The only way to know exactly what applies to your community is to read your specific governing documents.
Most CC&Rs are 40–120 pages of dense legal language. Finding the exact section that answers your question can take 20–30 minutes — if you can find it at all.
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