BROWN V. MONTAGE AT MISSION HILLS, INC. (2021) 68 Cal.App.5th 124 [SHORT-TERM RENTALS]

In this case, an individual purchased a condominium, which she consistently rented for short terms. Sixteen years after her purchase, the owner’s association amended its governing documents to prohibit renting properties for less than 30 days. The Court found that the owner was exempt from this prohibition under Civil Code section 4740(a). That provision provides that an owner of a property in a common interest development “shall not be subject to a provision in a governing document or an amendment to a governing document that prohibits the rental or leasing of” the owner’s property unless that document or amendment “was effective prior to the date the owner acquired title” to the property. The Court found that a restriction on short-term rentals is a “prohibition” within the meaning of Civil Code section 4740 and is enforceable only against owners who purchased properties after the restriction was in effect.