Florida Condominium and HOA Rental Restrictions: What Owners and Buyers Should Review

A property within an association may appear rentable because a listing says “rentals allowed,” the seller previously leased it, or an association representative provides a general answer. None of those facts, by itself, establishes when or how a particular owner may lease the property.

The practical question is not simply whether rentals are permitted. An owner or prospective buyer should determine what restrictions exist, where they appear, when they became effective, whether they apply to that particular owner, and what must occur before a tenant may take possession.

That analysis matters before purchasing the property, advertising it for rent, selecting a tenant, or establishing a possession date.

First Determine What Kind of Association Governs the Property

Not every South Florida rental property is governed by an association. When an association does govern the property, the first step is determining whether it is legally structured as a condominium or a homeowners association.

The physical appearance of the property does not necessarily answer that question. A townhouse, villa, or detached home may be part of either association structure.

A Florida condominium is generally governed by Chapter 718 of the Florida Statutes. The condominium is created through a recorded declaration, and the unit owner owns the unit together with an undivided interest in the common elements.

A Florida homeowners association is generally governed by Chapter 720. The owner typically owns a separate parcel that is subject to recorded covenants, mandatory association membership, and assessments.

The distinction matters because the governing documents, amendment procedures, statutory protections, and rental provisions are not identical.

The Governing Documents Are the Starting Point

For a condominium or homeowners association, the review may include the articles of incorporation and bylaws and any amendments to them, the current rules and regulations, and any current rental application or registration materials, including whether the requirements reflected in those materials are authorized by and consistent with the applicable governing documents and law. The review may also include the declaration of condominium and all recorded amendments for a condominium, or the declaration of covenants and all recorded amendments, supplements, and exhibits for a homeowners association. For a condominium, it may also include the association’s current frequently asked questions and answers document.

An owner should work from a complete and current document set. A listing description, seller’s statement, association website, application packet, verbal response, or prior approval may provide useful information, but none should automatically be treated as a substitute for the controlling documents.

For a sale by a non-developer condominium unit owner, Florida Statutes section 718.503(2) provides that a prospective purchaser who has entered into a contract is entitled, at the seller’s expense, to current copies of the declaration, articles, bylaws and rules, annual financial statement and budget, the Frequently Asked Questions and Answers document, specified inspection and reserve materials, as applicable, and the state governance form. For resales of residential units, the statute also prescribes conspicuous contract notices and pre-closing voidability rights.

For a sale of a parcel in a community governed by a mandatory homeowners association under Chapter 720, Florida Statutes section 720.401 generally requires the developer, or on resale the selling parcel owner, to provide the prospective purchaser the prescribed disclosure summary before the purchaser signs the sale contract. The form states that it is only a summary and directs the purchaser to the covenants and governing documents.

The existence of a statutory disclosure does not eliminate the need to review the actual rental provisions.

A Property Can Allow Rentals and Still Be a Poor Fit for an Owner’s Plan

Ownership or Occupancy Waiting Periods

Some governing documents require an owner to own or occupy the property for a specified period before leasing it. A waiting period can prevent a purchaser from producing rental income immediately after closing.

If a waiting period is identified, the review should determine where it appears, when it became effective, what event starts the period, whether any exceptions exist, and whether it applies to that owner.

A seller’s ability to lease the property does not necessarily establish that a new buyer can do the same immediately.

Minimum Lease Terms and Rental Frequency

A community may require a minimum lease term, such as six months or one year. It may separately limit how many times the property can be leased during a calendar year or another specified period.

Lease duration and rental frequency are different restrictions. A property may satisfy the minimum lease term but encounter a separate issue if a tenancy ends early and the owner wants to execute another lease during the same year.

Whether a replacement tenancy counts as another permitted rental depends on the language of the applicable documents and the particular circumstances.

Rental Caps, Queues, and Existing Tenancies

Some communities limit the number or percentage of properties that may be rented at one time. A restriction may include a waiting list, hardship exception, priority system, or procedure for documenting which properties are currently leased.

An existing tenant does not necessarily prove that a new owner will receive the same treatment. The current owner may have obtained approval under an earlier version of the documents, may have owner specific rights, or may qualify for an exception that does not transfer with the property.

A buyer evaluating projected rental income should therefore determine whether a rental cap exists and whether the association has confirmed the property’s current status under that restriction.

Tenant Applications and Association Approval

Many associations require prospective tenants to complete an application or registration process. Depending on the governing documents and the association’s authority, the process may request an executed lease and addenda, identification, screening information, vehicle information, occupant information, pet information, fees, deposits, and move-in documentation.

The owner should determine whether the association has approval authority or only registration authority, what documents are required, what criteria are applied, how fees and deposits are authorized, and how much processing time is expected and authorized.

Florida Statutes section 718.112(2)(k) permits a condominium association to charge a transfer approval fee only when the association must approve the transfer and the declaration, articles, or bylaws authorize a fee for that approval. The statute establishes a per applicant cap subject to five-year Consumer Price Index adjustments calculated and published by the Florida Department of Business and Professional Regulation, includes applicant grouping and same-lessee renewal rules, and permits a prospective lessee security deposit only when authorized in those documents. The deposit may not exceed one month’s rent, must be held in association escrow, and protects against damage to common elements or association property.

The association administers its own application and approval process to the extent authorized by its governing documents and applicable law. A property owner, real estate broker, or property manager should not promise association approval or guarantee a particular processing date.

Later Rental Restrictions May Not Apply to Every Owner in the Same Way

The date a restriction became effective, the date the owner acquired title, the source of the restriction, and whether the owner consented can all matter.

Condominium Amendments

Florida Statutes section 718.110(13) addresses a condominium declaration amendment that prohibits owners from renting, alters the duration of the rental term, or specifies or limits the number of times an owner may rent during a specified period.

The statute provides that such an amendment applies only to owners who consent to it and owners who acquire title after its effective date.

That provision does not mean every rule involving a tenant, occupant, application, vehicle, pet, or common area is necessarily governed by subsection 718.110(13). The language, source, amendment history, and legal character of the restriction still require review.

Homeowners Association Amendments

For homeowners associations governed by Chapter 720, Florida Statutes section 720.306(1)(h) generally provides that a governing document or amendment enacted after July 1, 2021, that prohibits or regulates rental agreements applies only to an owner who acquires title after its effective date or who consents to it.

The statute contains exceptions. An association may amend its governing documents to prohibit or regulate rental agreements for terms of less than six months and may prohibit renting a parcel more than three times in a calendar year, with those amendments applying to all parcel owners.

Section 720.306(1)(h) also preserves the separate limitation in Florida Statutes section 720.303(1) for associations of 15 or fewer parcel owners, which may enforce only deed restrictions established before each affected owner purchased the parcel.

Section 720.306(1)(h) also contains rules concerning certain transfers to affiliated entities, transfers to heirs, and changes in the ownership of business entities. The form and history of ownership may therefore affect the analysis.

An owner should not conclude that a restriction is inapplicable merely because the property was acquired before the restriction was adopted. Original restrictions, later amendments, consent, ownership changes, statutory exceptions, and the exact language of the provision must be considered together.

Association Approval and Owner Screening Are Separate Processes

Association approval does not replace the owner’s applicant screening process, and owner approval does not satisfy an association’s separate requirements.

The owner or property manager may evaluate an applicant under established rental criteria. The association may conduct a separate review to the extent authorized by its governing documents and applicable law. Each decision must be made by the party responsible for that process.

Housing decisions must also comply with applicable fair housing requirements. The federal Fair Housing Act prohibits housing discrimination because of race, color, national origin, religion, sex, familial status, and disability. Depending on the location and housing involved, other federal, state, or local requirements may also apply, and some local ordinances protect additional classes.

Application standards should be lawful, documented, and applied consistently, subject to reasonable accommodation and other applicable requirements.

When an owner, property manager, and association participate in screening, the record should accurately identify who made each decision and the stated basis. That distinction does not itself determine legal responsibility, which may depend on each participant’s conduct, authority, knowledge, control, and any agency relationship.

The executed lease and addenda establish the agreement between the landlord and tenant, subject to applicable law. The association’s governing documents can create separate requirements affecting the owner and occupants. Neither document set should automatically be assumed to replace, amend, or interpret the other.

The timing also matters. Before promising possession, the parties should understand whether an executed lease is required for the association application, whether the lease contains an association approval condition, when funds are due, and what occurs if the association does not approve the tenancy by the anticipated possession date.

The appropriate sequence depends on the governing documents, executed lease and addenda, association procedures, and facts of the transaction.

What a Current Tenant or Prior Approval Does Not Establish

A currently occupied property may appear to resolve the rental question, but the existing tenancy may have been approved under different facts or documents.

A prior lease or approval does not necessarily establish:

• That the governing documents have not changed
• That a new lease will satisfy the current minimum term
• That the property remains within a rental cap
• That a prior owner’s treatment transfers to a buyer
• That a new tenant will be approved
• That the same application, fees, deposits, or processing time will apply
• That an owner may execute another lease during the same calendar year
• That all occupants, pets, vehicles, and move-in arrangements comply with current requirements
• The existing lease, association approval, ownership history, and current governing documents should be reviewed separately.

The Property Manager’s Role

For an individually owned rental property, the property manager may help identify association requirements, obtain current application materials, coordinate communications, organize the required documents, account for association processing time during leasing, and maintain records of the process.

The owner's property manager’s authority depends on the property management agreement, owner authorization, executed lease and addenda, association procedures, and applicable law.

The owner's property manager does not control the association’s decision, guarantee approval, waive association requirements, or make a final legal determination concerning whether a restriction is enforceable. The association administers its own procedures, and a qualified Florida attorney should address property specific questions involving interpretation, enforceability, amendment applicability, or disputed authority.

Icon Realty provides residential property management and real estate brokerage services throughout Broward and select Miami-Dade and Palm Beach communities. Services for a particular property depend on the applicable management or brokerage agreement, owner authorization, property conditions, association requirements, and applicable law.

Learn more about Icon Realty’s South Florida property management and real estate services, review our property management FAQs, or contact Icon Realty to discuss a property.

Primary Sources

• Florida Statutes section 718.110, condominium declaration amendments
  
• Florida Statutes section 718.112, condominium bylaws, transfer fees, and deposits
  
• Florida Statutes section 718.503, condominium purchaser disclosures
  
• Florida Statutes section 720.306, homeowners association amendments and rental agreements
  
• Florida Statutes section 720.303, association powers and small association limitation
  
• Florida Statutes section 720.401, homeowners association purchaser disclosure
  
• U.S. Department of Housing and Urban Development, Fair Housing Act overview
  
• 24 C.F.R. section 100.7, liability for discriminatory housing practices

This article provides general educational information only and is not legal, tax, insurance, financial, accounting, construction, or investment advice. Review Icon Realty’s Website Disclaimer for additional information.