Is Buying in a 55+ Community as a Part-Time Rental Worth It? Pros, Cons, HOA Rules & Tax Considerations

Many people moving to Southern Arizona have a simple plan.

Buy a home in a 55+ or active adult community. Enjoy it during the best months. Then rent it out when you’re not here.

On paper, that can look like the best of both worlds — lifestyle plus some income to offset the costs.

But here’s the part that deserves a careful look: in age-restricted communities, the “rent it out later” plan often runs into rules, limits, and extra steps that buyers don’t always expect. And those rules can change over time.

I’ve lived in a 55+ active adult community myself. I’ve seen how policies evolve as the community grows, as resident priorities shift, and as boards respond to real-world issues. So I tend to approach this topic with a little extra caution — not because rentals can’t work, but because clarity up front prevents frustration later.

Let’s walk through the pros, the common roadblocks (especially HOA-related), and the tax topics you’ll want to discuss with a CPA before you decide if the effort is worth the return.

First, a quick note on how 55+ communities work (and why it matters for rentals)

When a community is truly “55+,” it’s typically operating under federal rules that allow housing to be intended for older residents. One key standard is that at least 80% of occupied units must have at least one resident who is 55 or older, along with policies showing intent to operate as older-person housing.

Source https://www.ecfr.gov/current/title-24/subtitle-B/chapter-I/part-100/subpart-E

What this means for you as an owner is simple:

• Age rules may apply not only to owners, but also to tenants.
  
  
• Your renter pool can be smaller than in a typical neighborhood.
  
  
• Screening, documentation, and HOA processes may be more involved.
  
  

Arizona law also recognizes this reality. For example, in an age-restricted planned community, a member, agent, or tenant may have to show government-issued identification confirming the tenant meets the age requirement.

Source: https://www.azleg.gov/ars/33/01806-01.htm

That one detail alone can make rentals feel very different than renting a home in a non-age-restricted area.

The upside: why some buyers still like the part-time rental plan

There are real benefits to owning in a well-run active adult community — and for the right buyer, renting part-time can make sense.

1) You may offset some ownership costs

Even a few months of rent can help with:

• HOA dues
  
  
• Utilities
  
  
• Insurance
  
  
• Maintenance
  
  
• Furnishings replacements over time

If your primary goal is lifestyle, “offsetting costs” is often a more realistic expectation than “making a strong profit.”

2) There is seasonal demand in Southern Arizona

Tucson and surrounding areas tend to draw winter visitors. If your community allows rentals and your home fits what seasonal renters want — single-level, furnished, easy access, amenities — demand can be consistent during peak months.

3) Amenities can be a rental advantage

Active adult communities often offer facilities and activities that help a rental stand out — but this comes with a caveat. Many communities tie amenity access to compliance with lease rules and tenant qualification.

The amenities are a selling point, but they’re also part of what the HOA is protecting.

The most common challenges: HOA rental restrictions and rule changes

This is where most buyers get surprised — especially if they’re thinking about short-term or flexible rentals.

A) Minimum rental periods (and no short-term rentals)

Many 55+ communities restrict rentals to longer terms. Some set minimum lease lengths that eliminate short-term or vacation-style rentals.

Here’s a real example using SaddleBrooke Ranch.

SaddleBrooke Ranch’s published Community Rules state: “All leases shall be for a minimum duration of ninety (90) days.” The rules also state that qualified tenants must meet the age requirements outlined in the CC&Rs.

Source: https://saddlebrookeranchhoa.org/documents/17401/22166/SaddleBrooke%2BRanch%2BRules%2Band%2BRegulations%2B2011.pdf

What this means in practical terms:

• Your rental season is limited to renters willing to stay 90 days or longer.
  
  
• You may have fewer turnovers, but also fewer rental opportunities.
  
  
• Short-term pricing strategies may not be available.
  
  

B) Tenant qualification and facility access

In many communities, tenants must be considered “qualified tenants,” meaning they meet age requirements and the lease complies with association policies.

This can involve:

• Written lease documentation
  
  
• Tenant registration
  
  
• Compliance confirmation
  
  
• Amenity access procedures
  
  

If paperwork is not handled properly, tenants may lose access to facilities. That can create frustration for both the renter and the owner.

C) Rental caps, waitlists, and approval processes

Some communities limit how many homes can be rented at one time or require formal approval.

Even if there is no formal rental cap, an HOA may regulate leasing through documented rules and enforcement policies.

D) Rules can tighten after you buy

Even if rentals are allowed today, communities may revisit rental policies over time.

SaddleBrooke Ranch’s Community Rules note that the Board may adopt, amend, or repeal rules, and members are required to comply, subject to the governing documents.

Source: https://saddlebrookeranchhoa.org/documents/17401/22166/SaddleBrooke%2BRanch%2BRules%2Band%2BRegulations%2B2011.pdf

This does not mean policies change frequently. It simply means governance structures allow for change.

Buying with clear expectations matters.

Tax considerations: where owners can run into surprises (educational only)

I’m not a CPA, and this isn’t tax advice. But I can tell you where owners commonly get caught off guard so you know what to ask a qualified tax professional.

The IRS treats renting residential or vacation property differently depending on how many days it’s rented and how many days you use it personally.

A helpful starting point is IRS Topic No. 415.

Source: https://www.irs.gov/taxtopics/tc415

Here are common areas to review with a CPA:

• Personal use vs. rental use tracking
  
  
• Deduction allocation between personal and rental use
  
  
• Depreciation considerations
  
  
• State tax implications
  
  

The key takeaway is that rental income is not simply “extra cash.” It carries reporting responsibilities.

A simple illustration of effort vs. return

Let’s walk through a general example to frame expectations.

Imagine a home in a 55+ community with:

• Several thousand dollars per year in HOA dues
  
  
• Insurance, utilities, maintenance, and reserves on top of that
  
  
• A 90-day minimum lease requirement
  
  

If the home rents for one 90-day season, that income may offset a meaningful portion of annual HOA dues.

But when you account for:

• Furnishings
  
  
• Cleaning between tenants
  
  
• Minor repairs
  
  
• Property management if you are not local
  
  
• Utilities during rental months
  
  
• Tax reporting complexity
  
  

The net result is often cost reduction rather than strong cash flow.

That does not make it a bad strategy. It simply reframes expectations.

So… is it worth it?

The answer depends on your primary motivation.

If it is primarily a lifestyle purchase

Your return may include:

• Time in a community you enjoy
  
  
• Access to amenities
  
  
• A home suited to your stage of life
  
  
• Partial cost offset during months away
  
  

If it is primarily an investment strategy

You will want to compare:

• Minimum lease requirements
  
  
• Age-qualified tenant pool limitations
  
  
• HOA compliance procedures
  
  
• The possibility of future rule changes
  
  

Clarity is what protects you.

Smart questions to ask before you buy

• What is the minimum lease term?
  
  
• Are short-term rentals prohibited?
  
  
• Are there rental caps?
  
  
• Do tenants have to meet age requirements?
  
  
• Does the HOA require lease submission?
  
  
• Are there tenant registration or amenity access rules?
  
  
• Have rental policies changed in recent years?
  
  

For SaddleBrooke Ranch specifically, it is important to review the most current version of governing documents.

Source: https://saddlebrookeranchhoa.org/documents/17401/22166/SaddleBrooke%2BRanch%2BRules%2Band%2BRegulations%2B2011.pdf

A steady perspective from experience

Active adult communities can be a great fit. They are often well cared for and thoughtfully designed around lifestyle.

But using one as a part-time rental has moving pieces — and most of those sit inside HOA documents and tax rules.

The buyers who feel best about this decision tend to treat rentals as a structured plan, not an assumption.

They read the documents carefully. They understand minimum lease periods. They confirm tenant qualifications. They talk with a CPA early.

That preparation creates confidence.

A calm next step

If you would like help reviewing rental language for a specific 55+ community before you purchase, I am happy to walk through it with you so you understand exactly what is allowed and what is not.

Clear expectations make for better long-term decisions.