“State condominium laws do not contain any provisions which pertain to the rental of units. The board’s authority to create rules and regulations that govern the use of the units in general is very limited and often dependent upon the provisions that exist in the underlying condominium documents, i.e. the master deed or declaration and trust or bylaws. If there is underlying provision in the condominium documents, then the board may have authority to create such a rule.
“That said, the establishment of a cap on the number of rental units in a condominium is not a typical provision that exists in most condominium documents. Therefore, assuming that there is no underlying provision in the condominium documents, the creation of a rule and relegation to establish such a restriction on the use of unit would not be valid. This should be distinguished from the board’s authority to create rules and regulations which govern the use and details of operation of the common areas of the condominium. In most cases, the board’s authority to create reasonable rules and regulations to govern the use and operation of the common areas is very broad and absolute.”