What to look for in CCRs?

[Greg Schuricht]

Hey all, I'm looking to invest in a townhome/condo as an STR investment.

I'm exploring a particular HOA and reading through their covenants, conditions and restrictions (CCRs). I see some paragraphs that talk about "Leasing of Units" and "Time Sharing". All I've been able to take away from the document is that the HOA wants to have copies of all executed leases, and time-sharing is not allowed. I've not found anything in the document that specifically talks about restrictions on short term rentals.

I tend to get lost in the weeds whenever I read through any legal document. Any tips on what else to look for? In my estimation it appears there are no STR restrictions because it is not specifically called out. I also plan to have my agent call the HOA and specifically inquire about STR restrictions.

What other sort of due diligence should I perform?

[Mark Futalan]

@Greg S.

What you should also worry about is if those HOA's will modify their terms and policies in regards to STR's in the future. They could be STR friendly now but they can change that at a moments notice.

You can always ask the HOA directly about their regulations on short term rentals.