Reasonable restrictions on the alienation of condominiums are entirely consistent with Civil Code section 711 in which the California law on unlawful restraints on alienation has its origins. The day has long since passed when the rule in California was that all restraints on alienation were unlawful under the statute; it is now the settled law in this jurisdiction that only unreasonable restraints on alienation are invalid. (Laguna Royale v. Darger)

The problems associated with too many renters in a development are widely recognized by the courts. As a result, reasonable rent restrictions have been upheld by the courts. The following list of cases is by no means exhaustive.

Apple II Condominium Association v. Worth Bank and Trust (1995) 277 Ill.App.3d 345. An association may amend its CC&Rs to prohibit leasing, provided it uses proper procedures to pass the amendment.

Breene v. Plaza Tower Ass'n (1981) 310 N.W.2d 730 732-33. North Dakota case involving prohibition of leasing in both declaration amendment and bylaw. City of Oceanside v. McKenna (1989) 215 Cal.App.3d 1420. Restrictions on leasing and the requirement imposed on owners to occupy their units are rationally related to the purposes set forth in the CC&Rs.

Clark v. Oakhill Condominium Association Inc. (Cause No. 3:08-CV-283 RM. United States District Court, N.D. Indiana, South Bend Division. March 31, 2011.) Plaintiffs bought a condominium as a rental property investment. When the association's governing documents were amended restricting rentals, Plaintiffs sued the association alleging housing discrimination. They claimed the restriction had a disparate impact on the availability of rental housing for minorities and interfered with their tenant's lease and with their own reasonable expectation to receive rental income. The court denied Plaintiffs' request for injunctive relief based on its conclusion that Plaintiffs had no evidence of discriminatory effect or discriminatory intent.

Colony Hill v. Ghamaty (2006) 143 Cal.App.4th 1156. Associations have the power to limit room rentals as a commercial enterprise.

Harrison v. Sierra Dawn Estates (2010) An unpublished case that describes the problems associated with renters.

Hidden Harbor Estates, Inc. v Norman (1975) 309 So.2d 180. Florida case involving CC&R amendment that owners were limited to a single rental during their tenure was valid and was a reasonable restraint on alienation.

Hill v. Fontaine Condominium Ass'n (1985) 255 Ga. 24, 334 S.E.2d 690. A duly adopted amendment either restricting occupancy or leasing is binding upon condominium unit owners who bought their units before the amendments were effective.

Kroop v. Caravelle Condominium, Inc. (1975) 323 So. 2d 307. Restriction that owners may lease their units only once during their lifetime is valid.

Laguna Royale Owners Ass'n v. Darger (1981) 119 Cal.App.3d 670. As long as rental restrictions are reasonable they will be upheld by the courts. Restrictions are reasonableness if: (i) rationally related to the protection, preservation or proper operation of the property; and (ii) exercised in a fair and nondiscriminatory manner.

McElveen-Hunter v. Fountain Manor Ass'n, 386 S.E.2d 435. North Carolina case involving condominium declaration amendment restricting leasing.

Ritchey v. Villa Nueva Condominium Ass'n (1978) 81 Cal.App.3d 688, 695. Amendment restricting leasing to persons 18 years of age and older was reasonable and was retroactively enforceable against a condominium owner.

Seagate Condominium Association, Inc v Duffy (1976) 330 So.2d 484. Florida case upholding restriction on leasing for investment. Shorewood West Condominium Ass'n. v. Sadri (1998) 92 Wash.App. 752. Restricting leasing to those units which were already leased is reasonable. However, the restriction must be in the CC&Rs.

Franklin v. Spadafora (1983) 447 N.E.2d 1244. Massachusetts case upholding leasing restrictions that discouraged purchase for investment by limiting to two the number of units that could be owned by one person.

White Egret Condominium, Inc. v. Franklin (1979) 379 So.2d 346. Florida courts upheld rental restrictions as reasonable for the operation and protection of the owners of condominiums.

Woodside Village Condominium Association, Inc. v. Jahren (2002) 806 So.2d 452. Florida courts upheld a leasing restriction that barred owners from leasing during the first 12 months of ownership and limited leasing to not more than nine (9) months in any twelve month period.

Worthinglen Condominium Unit Owners' Ass'n v. Brown (1989) 57 Ohio App. 3d 73. Ohio case involving condominium amendment prohibiting leasing.