According to the Foundation for Community Association Research, there are 358,000 community associations in the United States.
With this large number, it's not a surprise that as more and more homeowners rent out properties to make extra money, some of these homes happen to be part of a homeowners association (HOA).
When tenants take the place of long-term community residents, it sometimes complicates things for HOA management.
HOA communities are typically made up of homeowner residents, but some move and rent out their homes. Keep reading to learn how to manage rentals in an HOA community.
1. Check the Governing Documents
If you have decided to rent out your home, double-check the HOA governing documents. You need to know the rules regarding renting out a property in the neighborhood. Do you need approval? What are the expectations once you've become a landlord?
2. Know the Processes When Renting Out an HOA Property
Suppose you own a property in an HOA community. In that case, the HOA should have an outline of the processes and procedures directed at homeowners who are using their properties for rental income.
Who does the HOA notify when or if a renter violates the community rules? Do they notify the landlord or the renter? Who is responsible for paying the HOA dues?
Are there certain documents that the landlord must provide to the renter and the association?
3. Educate Tenants
When you purchase a home in an HOA community, the board or the property manager gives you a copy of the HOA's governing documents. This information is made available so that you know the rules and don't inadvertently violate the rules.
Now that the home has tenants, take the time to educate them on your expectations and the importance of adhering to the rules to make it a pleasant experience for all involved.
4. Keep the Homeowners Association Informed
Once you have a signed lease from your tenants, provide the HOA manager with a copy of it. Include the renter's name along with the names of all those residing in the home, the home address, and description of vehicles and license plate numbers.
Inform the board if there are pets. Give them your forwarding information if you previously lived in the home.
5. Use a Lease Addendum
Attach an addendum to the lease so that your tenants know the specifics of the rules of the HOA that they are expected to follow. Spell out that if they break the attached rules, they will be responsible for paying the fines.
The addendum should include that repeat offenders will be asked to vacate the property.
Managing Rentals in an HOA Community
Now that you've learned these tips to manage rentals in an HOA community successfully, you can put them into practice to protect the best interests of residents, rental property owners, and the HOA board.
If you need some support in handling rentals and working with homeowners, partner with us at Property Management Fine Properties. We are a full-service management company. We customize our services to meet the needs of each unique community we manage.
Send us a message on our contact form or call us at 832-969-6941 to set up a consultation with a licensed and experienced member of our team.
