Can an HOA Restrict Rentals in New Hampshire?

What New Hampshire law says

New Hampshire has no statute that directly governs homeowners associations. Condominiums are regulated by two acts: the New Hampshire Condominium Act (RSA 356-B), which covers condominiums formed after September 10, 1977, and the Unit Ownership of Real Property Act for older ones. RSA 356-B is the cornerstone statute — it governs creation, operation, and management — but it does not spell out rental policy. Courts typically decide rental disputes based on how the board applied its own governing documents, not by parsing statutory language.

Because the statute leaves rental substance to the documents, New Hampshire associations carry their restrictions in the declaration and bylaws: outright bans, rental caps, owner-occupancy waiting periods, minimum lease terms, tenant registration, and per-tenant fees. The instruments are construed together, with the declaration controlling over the bylaws in a conflict (RSA 356-B:13), and unlawful provisions are severed without killing the rest (RSA 356-B:14).

The Act does impose two notable constraints on how far instruments can go. RSA 356-B:47 voids rights of first refusal and other restraints on alienation unless the instruments provide for promptly furnishing a recordable statement certifying waiver or non-exercise — with any fee capped at $25. And RSA 356-B:14 provides that the rule against unreasonable restraints on alienation will not defeat a condo instrument's restraints, while barring discriminatory restraints under RSA 354-A.

A distinctive New Hampshire feature is rent diversion. RSA 356-B:46 — an opt-in provision an association adopts by majority vote at an annual meeting — lets the association direct the tenants of a delinquent owner to pay rent to the association until the owner's debt is satisfied. The owner may not retaliate against a complying tenant, and any lease waiver of the protection is void as against public policy. It is one of the strongest collection tools any New England condo statute gives an association.

• RSA 356-B — New Hampshire Condominium Act — governs condo creation, operation, and management; rental policy lives in the instruments
• RSA 356-B:47 — Rights of first refusal and other alienation restraints are void unless instruments provide a prompt recordable waiver statement (fee ≤ $25)
• RSA 356-B:46 — Opt-in rent diversion: association may direct a delinquent owner's tenants to pay rent to the association; anti-retaliation protection for tenants

What HOAs in New Hampshire can and can’t do

HOAs generally can:

• Prohibit rentals entirely through the declaration or bylaws.
• Impose rental caps, waiting lists, and per-unit lease limits.
• Require owner-occupancy waiting periods before first lease.
• Set minimum lease terms (180-day and 12-month minimums are documented).
• Require tenant information forms, lease copies, and per-tenant rental fees.
• Collect rent directly from a delinquent owner's tenants under the Act's opt-in rent-diversion provision (RSA 356-B:46), once adopted by the association.

Limits under New Hampshire law:

• Impose rights of first refusal or other restraints on alienation without the statutory waiver-statement machinery — such restraints are void unless the instruments provide a prompt recordable waiver statement (RSA 356-B:47; fee capped at $25).
• Use an alienation restraint to discriminate in violation of RSA 354-A (RSA 356-B:14(III)).
• Take retaliatory action against a tenant who pays rent to the association under the rent-diversion provision — waivers of that protection in a lease are void as against public policy.

Things to know in New Hampshire

• Documents decide everything: New Hampshire courts resolve rental disputes on the declaration and bylaws, not the statute — two neighboring communities can have opposite rules.
• Rights of first refusal and similar restraints need the RSA 356-B:47 waiver-statement machinery (fee capped at $25) or they are void.
• The opt-in rent-diversion provision (RSA 356-B:46) lets associations collect rent straight from a delinquent owner's tenants — adopted by majority vote at an annual meeting.
• Consumer-protection oversight of condos sits with the NH Department of Justice's Consumer Protection & Antitrust Bureau, a useful contact if an association operates outside its documents.

Rental rules we’re seeing in New Hampshire

Real examples from the HOA411 database:

• Spinnaker Point, Portsmouth — Official rental rules state owners may rent their condominium unit, with a per-tenant rental fee of $120 per new 6-month tenant or $240 per new 12-month tenant, plus a required owner-tenant information form.
• Ledgewood Hills, Nashua — Declaration §3.2.2 affirmatively permits owners to lease their units, with a 180-day minimum lease term, a written lease, and tenant registration with the association.
• Brook Hollow, Hanover — Large condo community (built 1974) near Dartmouth where rentals occur — units observed for rent at $3,200–$4,800/mo with 12-month leases. Association rules cap occupancy at 2 unrelated adults per unit; a $250 one-time transfer fee was noted.
• Varney Hill, Dover — 15-residence new-construction (2025) luxury condo building where rentals occur — multiple units observed for rent at $2,400–$2,750/mo, and units listed at $2,800/mo. A $580 one-time move-in fee was noted.

Frequently asked questions

Can a New Hampshire HOA ban rentals completely?

Yes, if the restriction is in the declaration or bylaws. RSA 356-B sets the framework for how condos govern themselves but leaves rental policy to the instruments, and New Hampshire courts decide rental disputes on the documents rather than the statute. Non-condo HOAs rely on their recorded covenants the same way.

What vote does it take to add a rental ban?

For condos, the amendment procedures are in the declaration and bylaws under RSA 356-B; there is no single statutory vote percentage. Non-condo HOAs follow their own declaration's amendment article. Whatever the documents require — often a supermajority — must be followed exactly.

Can the board set rental fees or minimum lease terms by rule?

It depends on the instruments. Documented New Hampshire examples include 180-day minimum lease terms, per-tenant rental fees ($120 per 6-month tenant, $240 per 12-month tenant at one Portsmouth condo), and tenant information forms. Boards can set fees and procedures the documents authorize, but a substantive new ban belongs in the declaration or bylaws.

What happens if an owner stops paying condo fees while renting the unit?

Yes. RSA 356-B:46 lets a unit owners' association — after adopting the provision by majority vote at an annual meeting — direct a delinquent owner's tenants to pay rent to the association until the debt is satisfied. The owner may not retaliate against the tenant, and lease waivers of this protection are void.

Can the association require a right of first refusal on rentals or sales?

Rights of first refusal and similar restraints on alienation are void unless the condo instruments provide a prompt recordable statement certifying waiver or non-exercise, with a fee capped at $25 (RSA 356-B:47). And no alienation restraint may discriminate in violation of RSA 354-A.

How do municipal short-term-rental rules interact with HOA rules?

New Hampshire cities and towns regulate short-term rentals locally, on top of HOA documents. An association may ban short-term rentals in its documents, but owners must also check municipal registration and zoning rules.

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General information only, not legal advice. HOA rules change — confirm directly with the HOA or a New Hampshire attorney before buying or leasing.