Buying another Las Vegas property? Watch out for a possible "gotcha."

For a few years now, many developers and new home builders have been placing restrictions on the buyer's right to rent the property. This may be imposed by a special condition placed in the purchase contract, or by provisions of the Conditions, Covenants and Restrictions ("CCRs") if there is a common interest community.

Typically, the restrictions prohibit a buyer from operating the property as a rental for either a fixed period of time (say, one or two years), or indefinitely until a further determination is made by the Board of Directors of the Homeowners' Association. Alternatively, the HOA may set a fixed number or percentage of the homes in the community that can be tenant-occupied, and an owner who wants to rent will have to be placed on a waiting list for HOA approval.

Renting your house in violation of a contractual restriction can result in legal action being filed against you by the builder/developer. If a violation of CCRs, the HOA can impose a recurring weekly fine for as long as the violation continues.

Even resale homes may be subject to rental restrictions, because several HOAs of older properties have amended their Rules and Regulations to limit the number of tenant-occupied dwellings.

So, if you're buying a home in Southern Nevada with any intention of ever renting it, first find out whether any restrictions exist that will prohibit you doing what you wish with the property.