As the popularity of platforms like Airbnb and Vrbo continues to skyrocket, HOA boards and HOA management companies are finding themselves at the center of a complex debate. This tension is becoming the new normal for communities across Texas and Colorado. Balancing the property rights of owners with the quiet enjoyment of the community is no small feat.

In this post, let’s explore the intricate relationship between HOAs and short-term rentals like Airbnb, dissect the legal realities, and outline how to manage short-term rentals (STRs) effectively to protect your community’s value and lifestyle.

Do HOAs Allow Airbnb?


One of the most common questions our property management company encounters from both new homeowners and sitting board members is simply: Do HOAs allow Airbnb listings? The answer, unfortunately, is rarely a simple yes or no. It depends entirely on the specific governing documents of the association and the state laws that supersede them.

In many older communities, the Covenants, Conditions, and Restrictions (CC&Rs) may not explicitly mention short-term rentals because platforms like Airbnb did not exist when the documents were drafted. These documents often rely on broad language restricting properties to “residential use.” However, relying on this ambiguity is risky. Courts in various jurisdictions have interpreted “residential use” differently. Some argue that a short-term renter is still using the home for residential purposes (sleeping, eating, showering), just for a shorter duration.

For HOA Airbnb issues, silence in the documents often favors the homeowner. If a restriction is not explicitly stated, it is difficult to enforce. This is why many communities are now rushing to amend their documents to clarify their stance. Whether an HOA allows Airbnb often comes down to the precise wording of leasing provisions. Does the document define a lease? Does it set a minimum lease term? Without these specifics, an HOA might inadvertently allow nightly rentals, leaving the board with limited tools to manage the resulting traffic and turnover.

Can an HOA Prohibit Airbnbs? Legal Considerations in Texas and Colorado


When a board decides that short-term rentals are causing too much disruption, the next logical question is: Can HOA prohibit Airbnbs entirely? The ability to ban these rentals varies significantly by state and requires strict adherence to legal procedures.

In Texas, the legal landscape shifted significantly with the Texas Supreme Court ruling in JBrice Holdings, L.L.C. v. Wilcrest Walk Townhomes Association, Inc. This case highlighted that general “residential use” covenants are insufficient to ban short-term rentals. To legally prohibit them, an HOA typically must have explicit restrictive covenants. If your current documents do not have this, the board cannot simply vote to ban them; you must go through the formal amendment process, which usually requires a supermajority vote of the homeowners—a high bar to clear.

Furthermore, in Texas, state law (the Texas Property Code) generally protects a property owner’s right to lease their property unless the governing documents state otherwise. You must be careful not to infringe on these rights without the proper authority, as this can lead to costly litigation.

In Colorado, the situation is governed by the Colorado Common Interest Ownership Act (CCIOA). Colorado HOAs generally have broad authority to regulate the use of units/lots, including prohibiting short-term rentals, provided the restriction is in the declaration. However, many Colorado municipalities (like Denver, Colorado Springs, and smaller mountain towns) have their own strict licensing requirements. Some even require the homeowner to provide proof of HOA approval before the city will issue a license.

Effectively navigating these laws requires professional guidance. This is where a knowledgeable HOA property management team becomes invaluable. Our HOA management company helps HOA boards understand whether their current documents support a ban or if a restriction requires a community-wide vote. We also monitor local city ordinances, as some cities may already have bans or restrictions that make HOA enforcement easier.

Establishing Clear Airbnb HOA Rules for Your Community


If a complete ban is not feasible or desired, the next best strategy is regulation. HOA Boards can protect the community’s character by implementing specific Airbnb HOA rules that mitigate the most common complaints: noise, parking, and safety.

1. Minimum Lease Terms

One of the most effective ways to eliminate “party weekends” without banning rentals entirely is to establish a minimum lease term. By requiring a minimum stay of 30 days, 3 months, or even 6 months, this effectively removes the property from the nightly rental market (Airbnb/Vrbo) and pushes it toward the long-term rental market. This reduces turnover and ensures tenants are more invested in the community.

2. Registration and Fees


Some HOAs require all landlords to register their rental properties with the HOA management company. This ensures they have contact information for the owner in case of emergencies or violations. Some communities charge a registration fee to cover the administrative burden of managing these records.

3. Occupancy and Parking Limits


Overcrowding is a major concern with STRs. Rules should explicitly limit the number of occupants per bedroom and the number of vehicles allowed. For example, “Maximum of two adults per bedroom” and “All vehicles must be parked in the garage or driveway; no street parking.”

4. Renter Education


Require owners to provide their tenants with a packet of community rules (pool hours, quiet hours, trash pickup) and mandate that these rules be posted inside the unit. This helps bridge the gap between a vacation mindset and community living.

5. Tenant Vetting


While some HOAs cannot approve or deny specific tenants due to Fair Housing laws, they can require owners to confirm they have performed background checks or that they are using a platform that verifies identity.

Implementing these rules requires a careful review of your current authority. If the CC&Rs give the HOA board the power to adopt “Rules and Regulations” regarding common areas and nuisances, an HOA management company may be able to implement some of these without a full vote of the membership. However, restrictions on the use of the lot (like minimum lease terms) usually require a CC&R amendment.

Handling an Airbnb HOA Violation | Steps for Enforcement


Even with perfect rules, violations will happen. Below, you will discover how to handle an Airbnb HOA violation that defines the effectiveness of your community’s policy. Consistency and documentation are key.

Step 1: Documentation


When a neighbor complains, get proof. This can be photos of parking violations, screenshots of the Airbnb listing (which often serves as proof of intent to rent for short terms), or police reports regarding noise. Utilize a monitoring service or simply have an HOA management team periodically audit listing sites to identify unauthorized rentals.

Step 2: Notice of Violation


It is extremely important to follow the due process procedures outlined in the community’s documents and state law (like Texas Property Code Chapter 209). This usually involves sending a formal notice to the owner via certified mail, detailing the violation (e.g., “Unauthorized Short-Term Rental” or “Nuisance: Excessive Noise”), and providing a cure period.

Step 3: Hearings and Fines


If the violation continues, the board should call the owner to a hearing. This is their opportunity to explain their side. If the HOA board determines a violation occurred, they can levy fines. To be a deterrent, fines for STR violations should be substantial, provided they are reasonable and consistent with the fine policy. A $25 fine might be seen as just a “cost of doing business” for a rental generating $300 a night. A daily fine structure is often more effective.

Step 4: Legal Action


In extreme cases where an owner ignores fines and continues to violate the restrictions, they may need to involve legal counsel to seek an injunction. This is a serious step, but sometimes necessary to preserve the community’s integrity.

Partnering with a professional HOA property management company like Goodwin & Company ensures these steps are handled correctly. We manage the administrative heavy lifting — generating notices, tracking certified mail, and documenting communication — so the board can focus on decision-making rather than paperwork.

The Intersection of HOA and Airbnb | Pros and Cons


As we weigh these decisions, it is helpful to step back and analyze the broader impact. The relationship between HOA and Airbnb is not purely negative; there are nuances that boards should consider.

The Pros of Allowing STRs:


Property Value: In vacation-heavy areas (like parts of Colorado or the Texas Hill Country), the ability to short-term rent can significantly increase property demand and value.
Owner Financial Stability: For some owners, rental income is what allows them to pay their assessments and maintain the home. A financially stable owner is better for the association than a foreclosure.
Community Vitality: In some resort-style communities, a steady stream of visitors supports local amenities and businesses, keeping the area vibrant.

The Cons of Allowing STRs:


Security Risks: Gate codes and keys floating around to strangers can compromise the security of the community. We lose the “neighborhood watch” benefit when we don’t know who belongs next door.
Nuisance and Noise: Vacationers are there to have fun; residents are there to sleep and work. This mismatch in lifestyle is the primary source of conflict.
Wear and Tear: increased traffic moves trucks, and constant in-and-out usage can degrade private roads and common amenities faster than long-term residency.
Loss of Community Cohesion: It is hard to build a sense of community when your neighbors change every three days.

Educating Your Homeowners | Questions They Should Ask

Part of our job as community leaders is education. At Goodwin & Company, we can proactively reduce conflict by advising owners who are thinking about renting. We should encourage them to ask the right questions before they list. Here is what we might tell them:

“Before you list your home on Airbnb, ask yourself (and us) these questions to avoid an Airbnb HOA violation:

What is the minimum lease term? (Check the CC&Rs — if it says 30 days, a weekend rental is prohibited).

Is there a rental cap? (Some communities limit rentals to 10% or 20% of total units. You might be on a waiting list).

Do I need to register? (Failure to register can result in fines even if the rental itself is legal).

Are guests allowed to use the amenities? (Often, pool keys and gym access are for residents only, not transient guests).

What is the parking policy? (Your guests cannot park in fire lanes or visitor spots for extended periods).

By providing this information upfront — perhaps in a ‘Welcome to the Neighborhood’ packet or a newsletter — we clarify expectations and save everyone the headache of enforcement actions later.

Best Practices for Board Members

As we navigate this landscape, here are a few final recommendations for our fellow board members:

Audit Your Documents: Do not wait for a problem to arise. Have your legal counsel review your CC&Rs today to determine exactly what authority you have regarding STRs.

Be Consistent: You cannot allow one owner to rent because they are “nice” and penalize another. Selective enforcement is a quick way to get sued.

Engage the Community: If you are considering a major change, like an amendment to ban STRs, survey the residents first. You need their buy-in to get the votes.

Leverage Technology: Use your community management software (like TownSq) to communicate rules and track violations efficiently.

The rise of the sharing economy has undeniably changed how we view residential neighborhoods. The clash between HOA and Airbnb interests is likely to continue as platforms evolve and state laws shift. However, by taking a proactive, educational, and legally sound approach, our HOA management company can manage these challenges effectively. Whether your community chooses to embrace short-term rentals with strict rules or move toward a prohibition to preserve a traditional residential atmosphere, the key is clarity and consistency.

As board members, our fiduciary duty is to protect the assets and quality of life of the association. We do not have to navigate this alone. Relying on expert advice and established best practices allows us to make informed decisions that serve the best interests of all residents — both the ones who have lived here for decades and the ones who just arrived.

If your community is struggling with short-term rental compliance or needs guidance on updating governing documents, we are here to help. Goodwin & Company has been serving community associations across Texas and Colorado for decades, providing the expertise and local support you need to thrive.

Ready to streamline your community management and navigate complex issues like STRs with confidence? Contact Goodwin & Company today to learn how we can support your HOA.

Frequently Asked Questions

Q. Do HOAs Allow Airbnbs?

It depends on the community’s specific governing documents (CC&Rs). Some HOAs have strict prohibitions against short-term rentals or require minimum lease terms (e.g., 30 days), effectively banning Airbnb-style stays. Others may allow them but impose rules regarding registration and guest behavior. Always verify your specific HOA’s restrictions before listing a property.

Q. Can HOAs Prohibit Airbnbs?

Yes, HOAs can generally prohibit Airbnbs, but they must have the legal authority to do so in their Declaration or CC&Rs. In states like Texas, a general “residential use” clause is often insufficient to ban short-term rentals; an explicit amendment approved by a supermajority of owners is usually required. In Colorado, HOAs also have the power to restrict rentals if properly documented.

Q. How should a board handle an Airbnb HOA violation?

The board should follow a consistent enforcement policy: document the violation (photos, listing screenshots), send a formal notice to the owner with a cure period, hold a hearing if the violation persists, and levy fines as outlined in the community’s fine policy. If non-compliance continues, the HOA may need to seek legal injunctive relief to stop the unauthorized rental activity.