Cartersville, GA asked in Real Estate Law for Georgia

Q: Can a HOA limit the number of rental units allowed in a subdivision?

1. Live in a new, still being developed subdivision.

2. total number of single family homes to be built is 320, currently 232 have been built.

3. Of the 232, 62 are leased homes, there is no cap on rentals in the HOA convenance.

4. HOA will not be turned over to residents until ALL houses have been built and/or sold.

5. Rental units are not being cared for, yards are not being mown, etc. per HOA standards, Owner occupied homes are overwhelmingly cared for.

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1 Lawyer Answer
James Clifton
James Clifton
  • Fayetteville, GA
  • Licensed in Georgia

A: If there is currently no limit on the number of rental units, the covenants can be amended to restrict the number of rental units. The amendment will have to occur in accordance with the bylaws. If the developer is still in control under the covenants, it will be the developer's choice as to whether the covenants are amended to restrict the number of rental units.

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