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These rules state the conditions under which owners of condominium units in a residential common interest development (CID) may lease units to tenants.

Civil Code §1360.2, 1373
Added by S.B. 150
Effective: January 1, 2012

These regulations apply only to CC&Rs, or other governing documents of a common interest development, which become effective on or after January 1, 2012.

A provision in the covenants, conditions and restrictions (CC&Rs) or other governing documents of a common interest development (CID) which prohibits the renting or leasing of a CID unit to residential tenants will only be enforceable against the owner of a unit if:

  • the provision was effective when the owner acquired title; or
  • the owner agreed in writing to be subject to later amendments prohibiting renting or leasing a unit.

The right to rent or lease all or part of an owner’s unit to a residential tenant is not terminated when the owner’s transfer of the unit:

  • is exempt from a reassessment by the county assessor [Calif. Revenue and Taxation Code §§62, 480.3]; or
  • is exempt from requirement of the use of a Transfer Disclosure Statement (TDS). [CC §1102.6(b), (e), (f) and (g)]

Before renting or leasing the unit, the owner must provide the homeowners’ association (HOA) with verification of the date the owner acquired title to his unit and the name and contact information of the prospective residential tenant or the prospective tenant’s representative.