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HB 5407

Relating to restrictions on residential leasing in property owners' associations.

89th Legislature (2025) Introduced by Salman Bhojani

HB 5407 would prohibit Texas HOAs from restricting or banning homeowners' ability to lease residential properties, expanding rental rights at the expense of community association governance power.

Referred to Trade, Workforce & Economic Development
#propertyinterests--landlord&tenant(i0610) #propertyinterests--propertyownersassociation(i0618) #restrictivecovenants(s0299)
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Bill Summary · HB 5407

Legislative bill overview

HB 5407 would restrict the ability of property owners' associations (HOAs) to limit or prohibit residential leasing of properties by owners. The bill aims to reduce HOA control over whether homeowners can rent out their residences to tenants, potentially overriding restrictive covenants or HOA bylaws that currently prevent or heavily regulate such leasing.

Why is this important

This bill addresses a practical tension between property rights and community governance. Many homeowners want to rent their properties for investment income or temporary relocation, while HOAs argue that lease restrictions maintain neighborhood character and stability. The outcome affects millions of Texas homeowners in HOA communities and influences housing flexibility in residential markets.

Potential points of contention

  • Property rights vs. community control: HOAs claim lease restrictions protect property values and neighborhood stability; opponents argue owners should have autonomy to lease their own property
  • HOA enforcement power: The bill would limit HOAs' ability to enforce existing deed restrictions, raising questions about contract enforceability and grandfathering of current rules
  • Investment housing impact: Restricting HOA anti-rental powers could increase short-term rentals and investor ownership, potentially changing neighborhood demographics and owner-occupancy rates
  • Implementation details: Unclear whether the bill would apply retroactively, how it handles existing CC&Rs, or what exemptions might exist for certain community types

Compiled from official sources — confirm details with the bill’s official record.

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