Condo Rental Rules in Hollywood: What Buyers Should Know

Thinking about buying a Hollywood condo to rent out? Smart move, but the details matter. Rental rules can shape your cash flow, your tenant strategy, and even your loan options. In this guide, you’ll learn how condo rental policies work in Hollywood and coastal Broward, what restrictions to expect, how to verify them, and how to build a realistic investment pro forma. Let’s dive in.

Hollywood condo rental basics

Every condo in Hollywood is governed by a set of documents that dictate if and how you can lease your unit. The primary sources are the Declaration of Condominium, Articles of Incorporation, Bylaws, and the Rules and Regulations. Boards may also adopt policies or resolutions that adjust or clarify leasing rules.

On top of the association’s rules, you also need to consider the City of Hollywood’s municipal code, Broward County requirements, and Florida tax rules for rentals. If you plan to finance, lender program standards can affect eligibility based on owner‑occupancy rates, rental concentrations, and project status. In practice, the governing documents tell you what is allowed, while city, county, and state rules add licensing and tax obligations.

Common rental restrictions in Broward condos

Minimum lease terms

Expect to see minimum lease lengths in the documents. In Hollywood and broader Broward, 6 to 12 months is very common for standard condo buildings. A few communities allow 30‑day or seasonal rentals, but those are the exception. A 6–12 month minimum usually eliminates short‑term, platform‑style rentals.

Waiting period after purchase

Many associations require a waiting period after you close before you can lease. Timelines often range from 6 to 12 months. This can delay income, so plan your carry costs during that period.

Lease caps and investor limits

Some condos cap the percentage of units that can be leased at any given time. Caps commonly run in the 20 to 50 percent range. If a building is at its cap, you may be placed on a wait list even if your unit otherwise qualifies.

Board approval and tenant screening

Most buildings require tenant applications, background checks, and board approval. The board typically charges application fees and may ask for income verification. Approval times vary based on the board’s meeting schedule and how complete the application is.

Required lease clauses

Associations often require leases to include specific provisions. Typical clauses address rule acknowledgment, providing copies of the lease to the association, indemnification language, and cooperation on enforcement. Some communities require you to use an association lease form or submit the lease for signature.

Subletting and occupancy limits

Many declarations limit subletting or room‑by‑room rentals. Expect a preference for whole‑unit leases and clear occupancy rules. Some buildings require you to occupy the unit for a set period before leasing.

Short‑term rentals

Short‑term rentals can be restricted by both the condo and local rules. Some buildings prohibit rentals under 30 days. Others allow them with registration and tax remittance. Even if the association allows short‑term rentals, you may still need local licensing and to remit transient taxes.

Enforcement and fines

Boards can fine for violations and may place liens for unpaid balances. Repeated issues can escalate. This matters because non‑compliant leases can trigger penalties that erode returns.

Financial health and assessments

Association finances affect your bottom line. Low reserves and frequent special assessments increase your risk and can reduce your net income. Always review the budget, reserves, and recent assessments before you buy.

Approval timelines and fees

Typical timelines

• Tenant approval: Often 2 to 6 weeks from complete submission. Faster if the board meets frequently and the packet is complete.
• Estoppel certificate for purchases: Typically 5 to 30 days depending on the manager and state timelines. Order it early in due diligence.
• Transfer or rental registration: Immediate to 30 days, depending on the building’s process.

Typical fees

• Application and processing fees: Commonly $50 to $500 per tenant or lease.
• Background check fees: Often $20 to $75 per person.
• Estoppel certificate: Often $100 to $500, typically paid by the buyer.
• Property management (if you hire one): Long‑term management commonly 8 to 12 percent of monthly rent. Short‑term management can run 20 to 35 percent plus cleaning and platform fees.

Ongoing obligations

• Provide the association a copy of each signed lease and any required tenant forms.
• Ensure tenants acknowledge and follow condo rules.
• Maintain required insurance. Short‑term renting can impact premiums and coverage.
• If applicable, register rentals and remit any required tourist or transient taxes.

Due diligence checklist

Move fast on documents. Add a contingency in your offer to review rental rights and association health.

• Obtain the full recorded Declaration, Bylaws, Articles, and current Rules and Regulations, plus any amendments or board resolutions that affect leasing.
• Request an up‑to‑date estoppel certificate. It can confirm rental status, violations, assessments, and whether a lease cap is near capacity.
• Review the last 6 to 12 months of board minutes to spot pending rule changes and enforcement trends.
• Analyze association financials: current budget, reserves, balance sheet, and arrears report. Ask about any planned special assessments.
• Request a rental ledger or list of current leases to gauge lease cap usage.
• Review the association’s insurance certificate to identify coverage gaps and likely owner policy needs.
• Confirm city, county, and state requirements for licensing and transient taxes if you plan short‑term rentals.
• Check with your lender about project eligibility. Rental concentration or litigation can affect financing options.
• Speak with the property manager about approval timelines and tenant application requirements. If possible, ask a board member about any wait lists or informal policies.

Pro tip: The estoppel certificate is often the quickest snapshot of current constraints. If it flags a waiting period, lease cap limits, or pending changes, investigate further before you waive contingencies.

Build a realistic cash flow

Gather core inputs

• Market rent: Use long‑term comps from the building or nearby properties if the minimum lease is 6 to 12 months. For short‑term models, confirm the association allows them before you analyze nightly rates.
• Vacancy: A conservative range for long‑term rentals in strong demand areas is 5 to 8 percent. Short‑term models should assume higher vacancy.
• HOA fees: Monthly dues are a major expense in many South Florida condos. Model increases.
• Taxes and insurance: Verify current property taxes and get HO‑6 and any wind or flood quotes early. Short‑term renting can raise premiums.
• Utilities and services: Identify what the association covers and what you will pay directly.
• Management and maintenance: Long‑term management often runs 8 to 12 percent of rent. Set aside 5 to 10 percent for maintenance and turnover.
• Special assessments: Ask about planned or likely assessments based on reserve studies.

Sample NOI approach

• Gross rent: Monthly market rent multiplied by 12.
• Vacancy: Gross rent multiplied by your vacancy rate.
• Operating costs: HOA dues, property tax, insurance, management, and maintenance reserve.
• Result: Net Operating Income. This helps you compare buildings and scenarios.

Example: If a unit rents for $2,500 per month, annual gross is $30,000. With 6 percent vacancy, HOA at $800 per month, property tax, owner insurance, 10 percent management, and a 7 percent maintenance reserve, the NOI can shrink quickly. A $200 monthly HOA increase would reduce annual NOI by $2,400, so sensitivity testing matters.

Sensitivity factors to model

• Minimum lease length: If 12‑month leases are required, do not base returns on nightly rates.
• Waiting period after purchase: If you cannot rent for 6 to 12 months, include carry costs with no income.
• Lease caps at capacity: Model a worst‑case no‑rental period if a cap may delay your first lease.
• Insurance and HOA changes: Model premium increases and dues adjustments.

Red flags to watch

• A declaration that bans rentals or imposes a long no‑lease period after purchase.
• A lease cap already at or near 100 percent.
• Low reserves, frequent special assessments, or high arrears.
• Pending association litigation.
• HOA dues that consume more than 40 to 50 percent of achievable rent.
• Unusually punitive fine schedules or unclear enforcement policies.

Next steps and support

If you want rental income from a Hollywood condo, align your target buildings with your lease strategy before you write an offer. Prioritize buildings whose documents, timelines, and financials support your plan. Then structure contingencies to validate rental rights, lender eligibility, and operating costs.

You do not have to navigate this alone. Our team helps investor buyers source viable buildings, obtain and interpret association documents, coordinate with managers, and model conservative cash flow. We can also assist with tenant placement for high‑end rentals and connect you with trusted lenders, insurance providers, and local property managers.

Ready to identify the right Hollywood condo for your rental strategy? Connect with Donna Zalter, PA MBA to plan your next step.

FAQs

Can a Hollywood condo association ban rentals?

• The recorded declaration and Florida’s Condominium Act control whether rentals are allowed or limited. Some buildings permit leasing with conditions, while others restrict or prohibit it.

Are short‑term rentals allowed in Hollywood condos?

• It depends on the specific association and local rules. A building may prohibit stays under 30 days even if the city allows licensed short‑term rentals.

How long does tenant approval usually take in Broward condos?

• Many boards take 2 to 6 weeks from a complete application. Timelines depend on board meeting schedules and background check turnaround.

Do lease caps affect financing for Hollywood condos?

• They can. Lenders consider project eligibility, including investor concentration and occupancy rates, when approving loans for condo units.

What are the biggest investor red flags in Hollywood condos?

• High HOA dues relative to achievable rent, low reserves, frequent special assessments, lease caps at capacity, long waiting periods to lease, and pending association litigation.

How should I plan for transient taxes on short‑term rentals?

• If you rent for shorter terms, you may need to register and remit state and local tourist or transient taxes. Confirm definitions, licensing, and rates before you buy.