All condo HOAs seem to have tight rules about the # of rentals?

[Andrew C.]

I've been looking at condo units as a plausibly lower maintenance option for rentals. One issue I'm finding is that nearly all of the HOA docs 1) assert that rentals are allowed 2) limit it to a tiny fraction (e.g. 4 out of 120) that can be rented at a time and you have to provide a copy of the lease to the HOA. I can understand why the HOA would want a copy of the lease. The restriction on the owner's rights that preclude me from renting it at all because 3-4 other units are rented seem like an overreach. WI passed a state law not too long ago that, if I understand it correctly, precluded municipalities from preventing rentals of at least 30 days. I wonder if this applies to condo HOAs, as well? Can / do-in-practice they actually prevent you from renting it out on a long-term basis?

[Corina Eufinger]

People erroneously think that HOA regulations on rentals come back to strictly a community decision, and as it's been pointed out here it's not. Fannie Mae isn't the only one that has limits on the percentage of rentals in a condo association. But it would be false to say that these regulations only have to do with lenders. 

Condos are viewed as different entities than single-owner properties by the law. This is mostly because you are dealing with people that buy into a community to put down permanent roots and don't want to be transient (like renters) and are living in very close proximity with shared walls. For this reason, the community can come together and create rules and laws that may be viewed as unconstitutional outside am HOA but are meant to maintain the quiet enjoyment and security of the established cooperative living experience. Condos can have regulations on noise violations, criminal activity, etc that may result in legal action against the owner from the association. All under the desire to maintain the integrity of the community.

That's a very long way of saying "yes", they can.  There are some rights to property that you are not entitled to keep or have exclusive regulation over when you purchase a condo.