If the condo docs prohibit lease renewals, then they can legitimately deny the automatic renewal if there is a reasonable basis for this. Sometimes it is to keep down the number of rentals because too many rentals causes the condo to lose eligibility for FHA financing of mortgages. The law on reasonableness is not a statute, but case law or judge made law. The courts have established this law.
You will need to hire a condo lawyer to assist you if you plan of fighting this. There are special rules which apply and require the dispute to be submitted to arbitration after providing notice.
This communication is not intended to create an attorney/client relationship. It is always recommended you consult an attorney in person to discuss your case. The Law Offices of Stage & Associates practices state-wide and represents homeowners and community associations. Please visit our website at www.stagelaw.com.