New Law Limits HOA Power to Restrict Renting
Recent changes in Arizona law give landlords more freedoms when renting out homes or units that are subject to a homeowner or condo association.
Arizona legislation that went into
effect in July 2014 places a number of restrictions on homeowner
in regulating the owners of rental properties. Following are
more important changes to
A.R.S. § 33-1260.01.
Right to Rent. Under the new law, any
owner may use their unit as a rental property unless it is
expressly prohibited in the declaration of covenants, conditions
and restrictions (CC&Rs). A unit owner must comply with any
rental time period restrictions contained in the CC&Rs.
Rental Agent. A unit owner can authorize
a third party to act as the owners agent for matters involving
the rental unit, by providing the homeowner association (HOA)
with a written and signed designation. This includes all matters
involving the rental unit except for voting in HOA elections and
serving on the board of directors. If a unit owner has
designated a third party as his agent, any notice to the third
party regarding the rental unit will constitute notice to the
Tenant Information. If an HOA requests
information about a tenant, the owner is required to disclose
only certain information:
the name and contact
information for any adults occupying the unit,
the time period of the lease
(including the beginning and end dates of the tenancy), and
a description of the license
plate numbers of the tenants' vehicles.
An owner is not required to provide any
other information regarding the tenant, even if provisions in
the CC&Rs or the HOAs governing documents state otherwise. The
only exception is if the unit is subject to age restrictions. In
that case, either the unit owner, the
unit owners agent, or the tenant must show a government-issued
photo ID to prove the tenant meets the age restrictions or
Tenant Fee. An HOA may charge a fee of
no more than $25 for each new tenancy in a rental unit. This fee
may not be charged for lease renewal. The fee, if charged, must
be paid in full within 15 days after the request was postmarked.
An HOA is not permitted to charge a unit owner or tenant any
other extra or special fees. Any fees, fines or requirements
imposed must be related to the use of recreational facilities or
be in conformity with every other owner-occupied unit in the
HOA. A fee or penalty charged by an HOA will be considered void
if it is in violation of this law.
Prohibitions. An HOA is prohibited from
doing the following, even if the governing documents state
Requiring a unit owner to
provide the association with a copy of the tenants rental
application, credit report, lease agreement, rental contract, or
other personal information (unless that information is
separately required by law). An HOA may still acquire a tenants
credit report through other means in order to collect a debt.
Requiring a tenant to sign a
waiver or other document limiting the tenants due process
rights as a condition of the tenant occupancy in the rental
Prohibiting or restricting a
unit owner from serving on the board of directors because the
owner is not an occupant of the unit.
Charging the unit owner or
managing agent a fee, fine, assessment or penalty greater than
$15 for failing to provide the information regarding the tenant
discussed above. A fee or penalty charged by an HOA will be
considered void if it is in violation of this law.
Should you have any questions about the
provisions of the new law or any other HOA-related issues,
Steve Benson (480-425-2607 or
Harris (480-425-2646 or
 In this article, all references to
“homeowner association” or “HOA” generally include
homeowner associations, condo
associations and other forms of community associations.