Navigating Leasing Rights in Homeowners' and Condominium Associations

Homeowners’ and condominium associations play a crucial role in maintaining the harmony and value of residential communities. A common question that arises is whether these associations can adopt amendments that change the leasing rights of owners within the community. Let’s delve into the specifics according to Florida law.

Homeowners’ Associations and Leasing Amendments 

Chapter 720 of the Florida Statutes is called the Florida Homeowners’ Association Act. This law was amended in 2021 to address amendments that regulate the leasing of “parcels” within a homeowners’ association. Typically, the parcel is the home and the land the home sits on, and usually other improved or unimproved portions of lots.

A new Section 720.306(1)(h) was added, which says that any amendment to the homeowners’ association’s governing documents, adopted after July 1, 2021, that prohibits or regulates rental agreements, only applies to a parcel owner that acquires title to their parcel after the effective date of the amendment, or to a parcel owner who consents to the amendment. However, this restriction does not apply to amendments which regulate or prohibit rental agreements for terms of 6 months or less. Further, amendments that prohibit the rental of parcels for more than 3 times in a calendar year also apply to all parcel owners.

Homeowners’ associations continue to have the ability to adopt amendments that regulate or prohibit leases of 6 months or less, and still have the ability to adopt amendments which prohibit leasing more than 3 times in a calendar year.

Condominium Associations and Leasing Amendments 

For condominiums, Section 718.110(13) of the Florida Condominium Act states that any amendment which prohibits a unit owner from leasing their unit, alters the duration of the rental term, or limits the number of times an owner may rent their unit during a specified period, only applies to those owners who take title after the effective date of the amendment, or those owners who consent to the amendment. There is no 6-month/3 times per year exception in the Condominium Act.

Florida Senate Bill 280 

During the 2024 Florida legislative session, CS/SB 280 was passed by the Florida Legislature. This bill aims to change the regulation of vacation rentals, which are defined as units in condominiums or cooperatives, or single, two, three, or four-family houses rented to guests more than three times a year for periods of less than 30 days or one calendar month, whichever is shorter, or held out as regularly rented to guests.

CS/SB 280 will provide the state with increased authority to regulate vacation rentals by controlling licensing, establishing occupancy limits, and overseeing rental advertisement platforms. The bill was sent to Governor DeSantis' desk for signature on June 17, 2024.

Understanding these regulations is essential for both homeowners and condominium associations as they navigate leasing amendments and their implications for property owners. Stay informed about legislative changes to ensure compliance and make well-informed decisions for your community.

Angela Prudenti concentrates her practice in Commercial Litigation, Bankruptcy & Appeals. Prior to joining Sachs Sax Caplan P.L. Ms. Prudenti was Chief of White Collar Crime Unit at the Palm Beach County State Attorney’s Office in West Palm Beach. She has tried over 150 complex cases to verdict. She obtained the first conviction under the Aggravated White Collar Crime Statute in the State of Florida. Ms. Prudenti also previously held the position of Senior Trial Attorney in the Homicide/Crimes against Children Unit at the State Attorney’s Office. Learn more about Angela here.

Jeremy Dicker is an associate in Sachs Sax Caplan’s Commercial Litigation & Appeals Practice Group. Before joining Sachs Sax Caplan, Mr. Dicker completed two judicial clerkships: Mr. Dicker was a trial court law clerk for the Fifteenth Judicial Circuit Court (Palm Beach County) and a career staff attorney to the Honorable Peggy A. Quince at the Florida Supreme Court. Following the clerkships, Mr. Dicker worked for a prominent appellate law firm in Palm Beach County. Learn more about Jeremy here.