For Rent? How Communities Can Manage Short-term Rentals

The short-term rental market has transformed how people travel and how property is used. Platforms like Airbnb and VRBO have made it easy for owners to rent out their units often with little oversight or accountability. For many community associations, this has introduced challenges never contemplated when governing documents were drafted decades ago.

Not all short-term rentals are inherently bad. Some associations have embraced them especially during tourist seasons, special events, or to allow owners to generate income. 

The key to successfully managing short-term rentals lies in being proactive, intentional, and well-informed.

Most conflicts, which include noise complaints, overcrowding, misuse of amenities, and security concerns, can be minimized or prevented if associations have well-drafted documents, clear enforcement policies, and open communication with owners. 

The first step for any board or manager is to carefully review the association’s governing documents, particularly the declaration, bylaws, rules and regulations, and articles of incorporation. 

If your documents don’t address short-term rentals or do so ambiguously, boards should consider an amendment. Not every community wants a complete ban. The goal is to find a structure that aligns with a community’s identity and values.

Here are some options to consider:

Minimum lease terms

Require a minimum rental duration to discourage transient use.

Caps on rentals

Limit the number or percentage of units that can be leased at any given time.

Owner-occupancy requirements

Permit short-term rentals only if the owner is present during the rental.

Registration and approval

Require owners to register rentals and obtain board or management approval.

Use zoning or time restrictions

Allow rentals only during specific months or in designated buildings or only during specific events.

If the association decides to allow limited rental activity, it should create detailed rules that cover guest conduct, parking, amenity use, trash disposal, noise, and occupancy limits. These rules should be adopted by resolution, published clearly, shared regularly, and consistently enforced. 

A primary concern with short-term rentals is not knowing who is staying in the community. Associations should require owners who rent their units to provide the following information before a guest’s stay:

• Guest name(s) and duration of stay
• 24/7 contact information for the owner or local agent
• Confirmation of posted house rules inside the unit
• Acknowledgment of compliance with association rules

These facts help the association manage expectations, enforce rules, and respond to issues more efficiently. For communities with controlled access such as gates, key fobs, and elevators, tracking guest entry also can be a practical necessity.

Wherever your board lands, communication is key. Explain what the board is doing and why. Hold town halls or webinars, provide FAQs, and give owners a forum to share concerns. Transparency builds trust and reduces the risk of backlash. Once rules are in place, publish them in multiple formats including the website, newsletters, email blasts, and welcome packets for new owners.

Short-term rentals are not going away. If your board is unsure how to proceed, consult your community association attorney early in the process. Well-drafted amendments and carefully crafted rules can help your community find the right balance between owner rights and community well-being.

>>A version of this article originally was published in CAI’s Common Ground May June 2026 issue.

>>Time to update your community’s rules? Turn to Drafting Rules: How Community Associations Maintain Peace & Harmony.