Improper Denial Of Rental Or Lease Applications By Condo Associations

When a condominium association denies a lease application, many owners assume the board has wide discretion. In Florida, that assumption can be expensive. A condo association only has the authority granted by the Condominium Act and the community’s governing documents. Leasing restrictions and lease approval processes must come from that authority. If an association denies a tenant without legal authority, relies on improper grounds, or applies its standards inconsistently, the denial may be challengeable.

This article explains where lease approval power comes from, what makes a denial improper, what evidence matters, and what remedies Florida law provides. Contact our Miami, FL real estate litigation lawyer for legal assistance today.

Step One: Does The Association Actually Have Lease Approval Authority

Florida law allows condominium declarations to include covenants and restrictions concerning the use, occupancy, and transfer of units. That is the statutory foundation for many leasing restrictions and approval provisions. See Fla. Stat. § 718.104(5).

But the key point is this: the authority has to be in the governing documents. If the declaration does not require lease approval, the board generally cannot create an approval requirement by rule, policy, or “we have always done it this way.”

Florida courts have repeatedly treated recorded governing documents as the controlling source of authority for restrictions. When an association tries to add a restriction or approval scheme not supported by the declaration, owners often have real leverage.

The Hierarchy Problem: Rules Cannot Override The Declaration

Condominium governance operates on a hierarchy. The statute and declaration sit at the top, bylaws follow, and board made rules and policies sit lower.

That means a rule cannot expand the board’s power beyond what the declaration authorizes. If the declaration is silent on lease approval, a board policy that claims “all tenants must be approved” is a red flag.

When Approval Exists, Florida Law Limits What The Association Can Do With It

Even if the declaration or bylaws give the association tenant‑approval authority, that power is still constrained by the Condominium Act, the governing documents, and fair housing laws. Florida law does not give the board a blank check to reject tenants for any reason it wishes.

Fla. Stat. § 718.116(4) addresses what happens when the declaration or bylaws require association approval of a lease. In that situation, the statute confirms that one valid ground for disapproval is the unit owner’s delinquency in assessments at the time approval is sought, and it authorizes the association to demand that the tenant pay rent directly to the association if the owner is delinquent. The statute does not create an exhaustive list of allowable disapproval reasons or expressly prohibit the use of credit, income, or other financial criteria; instead, any screening standards must still be lawful, consistent with the declaration and bylaws, and applied in a non‑discriminatory, non‑pretextual way.

In plain terms: if the documents give approval power, the association may deny based on properly adopted, lawful criteria (and can always rely on assessment delinquency as a statutory ground), but it cannot invent criteria that conflict with the documents, fair housing laws, or other provisions of the Condominium Act, or apply its standards unevenly or in bad faith.

Another Common Issue: Boards Charging Improper Application And Approval Fees

Leasing disputes often include a money issue. Florida law caps certain transfer related fees, including fees tied to approval of a lease or sublease, when the community’s documents authorize such approvals. See Fla. Stat. § 718.112 provisions addressing transfer and approval fees.

If the association is charging above the statutory cap per applicant, bundling “administrative fees” to evade the cap, or charging inconsistent fees for different owners, that can strengthen a challenge and may support additional statutory remedies.

Leasing Restriction Amendments And “Grandfathering”

A denial can also be improper when it is based on a newer leasing restriction that does not apply to the owner.

Florida law limits the reach of certain amendments that restrict leasing. Under Fla. Stat. § 718.110(13), an amendment that prohibits or materially restricts rental rights typically applies only to owners who consent to the amendment and to owners who acquire title after the amendment becomes effective.

So if the association denies a lease by citing a newer restriction, the first question is whether that restriction is enforceable against that specific owner. Owners who purchased before the amendment and did not consent may have protected rental rights depending on the restriction type and the statutory framework.

What “Improper Denial” Usually Looks Like In Real Life

Improper denials tend to fall into a few predictable patterns:

1. No authority
   The declaration does not require approval, but the association demands an application and denies it anyway.
2. Denial on grounds not permitted
   The board cites vague “standards,” personal dislike, or financial characteristics that run into statutory limits under § 718.116(4).
3. Process defects
   Missing committee action required by documents, denial without required notice, denial outside required timelines, or denial without required documentation.
4. Selective enforcement
   One owner’s tenant is denied for reasons that other tenants routinely pass, suggesting uneven application or pretext.
5. Bad faith or retaliation
   While courts often avoid micromanaging board decisions, boards still must act within their authority and follow the statute and governing documents. A record showing retaliation or arbitrary action can change the case posture fast.
6. Discrimination
   If the denial is tied to a protected characteristic, it can violate federal and state fair housing laws. Even “neutral” standards can create liability if applied as a pretext or inconsistently.

Evidence Owners Should Gather Immediately

These disputes are proof driven. If the goal is to overturn a denial, you need a clean record.

Start with:

• The written denial and the stated reasons (if the association refuses to provide reasons, document that refusal)
• The declaration, bylaws, and any approved leasing or screening provisions
• Proof the owner is not delinquent in assessments if that is being used as a denial basis
• The application packet and what was actually submitted
• Comparable approvals, meaning other tenants approved under similar facts
• Board minutes, committee notes, and communications showing how the decision was made

Remedies And Enforcement Options Under Florida Law

Florida law provides a direct compliance mechanism. Under Fla. Stat. § 718.303(1), unit owners and associations must comply with the Condominium Act and the governing documents, and an action at law or in equity may be brought for failure to comply.

In practice, owners often pursue:

• Demand letter citing the controlling declaration section and the specific statute violated
• Injunctive relief when timing matters, such as a lease start date or lost rental income risk
• Declaratory relief to obtain a ruling that the association’s approval scheme or denial basis is invalid as applied
• Attorneys’ fees where available under the statutory and document based fee provisions depending on the claim structure

Practical Next Steps If Your Lease Was Denied

If you think the denial was improper, stop debating in email threads and start building a legal record.

1. Confirm whether approval is actually required by the declaration.
2. Identify exactly what criteria and process the documents authorize.
3. Request the reason for denial in writing and demand the specific authority relied upon.
4. Document inconsistencies by comparing similar approvals.
5. Escalate strategically, especially if the denial affects a pending lease start date.

Key Takeaway

A condo association can regulate leasing when the declaration and statute authorize it, but it cannot invent powers, expand restrictions through rules, or deny tenants on improper grounds. If the denial is unsupported by the documents, conflicts with statutory limits like § 718.116(4), improperly applies a rental restriction amendment under § 718.110(13), or violates the compliance framework in § 718.303, Florida law provides meaningful enforcement options.

Advocating For Homeowners Statewide

At Perez Mayoral, P.A., our practice is dedicated exclusively to homeowners and condominium unit owners. We do not represent associations. This approach allows us to advocate for owners throughout Florida.

To set up a consultation, call 305-928-1077 or email [email protected].