Short-term renters beat Clark County in federal court — but not their HOA
Short-term renters beat Clark County in federal court — but not their HOA
2026-09-15 · Nevada · Courts · Pending — not yet law
What happened. On December 19, 2025, a federal judge blocked much of Clark County's short-term rental enforcement regime. For a Nevada owner in a common-interest community, the important thing about that ruling is what it does not touch.1
The ruling
U.S. District Judge Miranda Du granted a preliminary injunction in litigation brought by the Greater Las Vegas Short-Term Rental Association and Airbnb against Clark County. As reported, it bars the county from:
- requiring a short-term rental licence;
- issuing or enforcing daily fines;
- declaring short-term rentals a public nuisance;
- recording liens or special assessments.
The reasoning was procedural due process:
“Under the present circumstances — where prospective short-term renters are effectively barred from applying for a license in the first place, and the County's untimely processing period leaves pending applicants exposed to unfair enforcement penalties in the interim — the County has deprived Plaintiffs of a protected property interest without providing any meaningful process.”
A preliminary injunction is an interim order, not a final judgment. The litigation continues.
Why it does not reach your CC&Rs
The injunction runs against Clark County and constrains what the county may do under its own ordinance. An association's short-term rental restriction is a different thing entirely: a recorded covenant, enforced by a private entity, under NRS chapter 116.
The due-process reasoning does not transfer. The constitutional defect the court identified was a government depriving people of a property interest without meaningful process — a licensing scheme that could not be applied to, and fines that accrued while applications sat. An association enforcing a recorded covenant is not a government actor, is not administering a licence, and is subject to the procedural requirements Nevada's own statute imposes on it rather than to the Fourteenth Amendment.
The practical statement for a Nevada owner is blunt: you can win against the county and still lose to your HOA. They are separate gates and the federal case opened only one of them.
This characterisation of the injunction's scope is drawn from the reporting of the order rather than from the order itself.
The Legislature reinforced the private gate in the same period
Anyone reading the injunction as a general relaxation of short-term rental restrictions in Southern Nevada should read the 2025 session alongside it, because it points the other way.
Assembly Bill 396 rewrote NRS 116.335, and its subsection 2 now preserves an association's power to enforce rental provisions found elsewhere in law — naming transient lodging specifically:2
“…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.”
The same section, effective July 1, 2026, also lets an association adopt rules prohibiting or restricting leasing where the restriction is reasonably related to lender or insurer underwriting requirements — without amending the declaration. And the companion amendment to NRS 116.2117 carved lender- and insurer-justified lease restrictions out of the grandfather clause that used to protect existing owners from later amendments.
So in the twelve months around this injunction, the county's power to penalise short-term rentals was curtailed and the association's power to restrict renting was expanded.
One pending state regulation cuts the other way, slightly
There is a counterweight worth knowing about, and it is narrow. Section 2(2)(d) of the pending regulation R091-25 would provide that a violation does not pose an imminent threat to health, safety or welfare where the sole basis is conduct that “[i]s a violation of the governing documents of the association but is otherwise lawful under the laws of this State.”3
Applied to short-term rentals, that would mean a board could not treat a bare CC&R short-term rental violation — where the rental is otherwise lawful — as a health-and-safety matter carrying an uncapped fine. It would be back inside the $100-per-violation and $1,000-per-hearing ceilings in NRS 116.31031.
That regulation was adopted by the Commission on September 9, 2026 and has not been filed. It is not in force, and until it is, this argument is not available to an owner.
What an owner can actually do
- Read the declaration for a minimum lease term. This is how most Nevada associations restrict short-term rentals, and it is enforceable as contract regardless of the county's licensing position.
- Watch for a new board rule, not just an amendment. Since July 1, 2026 a rental restriction can arrive as a board agenda item if the declaration authorises restriction or contains a cap.
- Do not assume you are grandfathered. The protection in NRS 116.2117(6) now has an exception for lender- and insurer-justified leasing restrictions.
- If fined, check which ceiling applies. An ordinary covenant violation is capped at $100 per violation and $1,000 per hearing. A fine larger than that is being charged as a health-and-safety violation, and that designation is the thing to contest.
- Remember the ADR requirement. A dispute with the association over the governing documents goes through the association's own process and then the NRS 38 program before any civil action.
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