There are more than 358,000 neighborhoods in the United States governed by a homeowners association (HOA). This popularity is due to the many advantages HOAs afford, including a high standard of living and home value retention.
Renting out a home in an HOA requires special considerations. There are lots of things landlords need to do to avoid any pitfalls.
If you are a property owner with rentals in an HOA community, keep reading. The HOA property management guide below explains what Austin landlords need to know to sidestep any issues and get the most out of their investment.
HOA Rules Apply
Landlords need to understand that the HOA bylaws apply to their rental properties. If you have renters who violate the rules, you could be held responsible.
This applies to everything from noise ordinances to property upkeep or alterations. Some communities have strict pet policies regarding type or breed, as well as size limits and maximum allowable number of pets. That means you need to make sure that every resident is aware of the rules, along with the consequences of not following them.
Inform Renters of Fees
HOA fees are used to pay for many different things in a neighborhood. These include the upkeep of grounds and amenities. These can be attractive features for prospective renters, but it is important that they understand the costs.
Some HOAs charge additional fees for services like sewer, water, trash collection, and recycling. If you plan to pass HOA fees along to residents, that needs to be spelled out in the rental agreement.
Specific Requirements for Renters
Some HOAs have specific requirements pertaining to renters. For instance, there may be rules on the number of percentage of rentals in an HOA community. HOAs may require property owners to perform background checks on tenants.
There may be leasing rules in HOA communities, such as a minimal rental period, to limit the potential for turnover in residents. Some may prohibit short-term or vacation rentals. Landlords need to be aware of these standards and reflect the guidelines in their lease agreements.
Communication Is Key
Relaying all relevant information to residents, including any changes in HOA rules during a tenancy, is priority number one. It will help ensure they have the knowledge they need to be good community members, and it will put the responsibility on them to abide by rules and standards.
Regular communication with the HOA board is also important. It will allow them to voice any concerns and will give you the chance to address any minor issues before they become major ones.
Learn More About Rentals in an HOA Community
Rentals in an HOA community can be complex but are not impossible to navigate. If you are a board member and need assistance managing rentals in an HOA, consider hiring professionals. A reputable company will be able to advise you on the best policies to help things run smoothly.
PMI Silicon Hills provides professional community association management to Austin and the Hill Country areas of Texas. We offer a range of services, including maintenance, accounting, and board member resources. Reach out to us today to set up a free consultation or for more HOA rental property tips.
