Can an HOA prevent you from leasing your real property?

Yes and no – depending on your existing HOA CCRs and your HOA reaction to limitations placed on certain types loans (i.e., FHA) by lenders allowed to be used by Buyers if rentals/leases exceed certain thresholds and whether or not the HOA has elected to submit itself to the 1994 Georgia Property Owners Act (POA).

HOAs that agree to be compliant with the POA are not subject to Section 44-5-60 (4) of the Georgia Code. This code section states that “no change in the covenants which imposes a greater restriction on the use or development of the land will be enforced unless agreed to in writing by the owner of the affected property at the time such change is made.” This advantage is most readily apparent in those Associations who wish to pass amendments to their Declaration to enact stricter leasing restrictions.

So in the case where your HOA is now in compliance with the POA, leasing regulations can be enacted and the renewed lease with your tenant may be denied and you will no longer be allowed to lease the property.

Source: The Georgia POA Act and Your Association.

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