Can a Georgia Homeowners Association Impose Rental Restrictions?

In general, Georgia law does not prohibit associations from imposing rental restrictions, so a “good faith” restriction promoting a substantial interest of the association and enforced in a non-arbitrary manner will probably be upheld.  Saunders v. Thorn Woode Partnership, L.P. 265 Ga. 703, 462 S.E.2d 135 (Ga., 1995).  However, a board cannot unilaterally impose a restriction; it must be authorized by the association’s declaration.

As association that does not have rental restrictions but wants to adopt them must amend its declaration.  In associations governed by the Georgia Property Owners’ Association Act (GPOAA), as long as the amendment is adopted properly by member vote in accordance with the association’s governing documents and the statute, the amended covenant will be binding on all members – even those who voted against it.  In communities that are not governed by the GPOAA, an owner must consent to an amendment that increases the restrictiveness of covenants.  Thus, a new rental restriction would not be enforceable against members who voted against it in a non-POAA association.