NRS 116.335: Adoption of rules and regulations by association related to certain restrictions or prohibitions in declaration concerning renting or leasing units; exceptions. [Effective July 1, 2026.]

1. If the declaration authorizes the association to prohibit or restrict the unit’s owner from renting or leasing his or her unit, or contains a provision establishing a maximum number or percentage of units in the common-interest community which may be rented or leased, the association may adopt rules and regulations to prohibit or restrict the renting or leasing of residential units to the extent that the restriction is reasonably related to meet underwriting requirements of:

(a) Institutional lenders that regularly make loans secured by first mortgages on units in common-interest communities or regularly purchase such mortgages; or

(b) Insurance companies that issue insurance policies to associations or units in a common-interest community.

2. The provisions of this section do not prohibit an association from enforcing any provisions which govern the renting or leasing of units and which are contained in this chapter or in any other applicable federal, state or local laws or regulations, including, without limitation, any restriction on the rental of units as transient lodging pursuant to NRS 244.35351 to 244.35359, inclusive, or 268.09791 to 268.09799, inclusive.

3. Notwithstanding any other provision of law or the declaration to the contrary:

(a) If a unit’s owner is prohibited from renting or leasing a unit because the maximum number or percentage of units which may be rented or leased in the common-interest community have already been rented or leased, the unit’s owner may seek a waiver of the prohibition from the executive board based upon a showing of economic hardship, and the executive board may grant such a waiver and approve the renting or leasing of the unit.

(b) If the declaration contains a provision establishing a maximum number or percentage of units in the common-interest community which may be rented or leased, in determining the maximum number or percentage of units in the common-interest community which may be rented or leased, the number of units owned by the declarant must not be counted or considered.