Rentals in HOA Community Homes: How to Maintain Community Standards

Rentals in HOA Community Homes: How to Maintain Community Standards

As of 2021, the value of homes in HOA communities in the U.S. was approximately $11 trillion.

What percentage of those homes end up being rentals? Most homeowners in HOA communities would prefer that the percentage be zero, but that's unlikely.

The best residents can hope for are specific HOA restrictions on long- and short-term rentals in the community.

Community living often means knowing your neighbors and working together to maintain the standards of the community. Keep reading to learn more about how to manage rentals in HOA community homes.

Can an HOA Restrict Rentals?

Renting your home in an HOA community is a constitutionally protected right. Historically, courts have upheld this right, but it depends on the laws in individual states.

HOAs can, and often do, impose rental limitations. Some put a limit on the total number of rentals in the community. Others set up rules requiring homeowners to abide by minimum lease agreements.

Community Standards

All HOA communities exist to increase property values for the residents. The best way to do that is to maintain community standards.

HOA boards put forth rules that apply to the aesthetics of homes, parking, yard sales, pets, fences, holiday decorations, types of vehicles allowed, and more.

Residents are expected to follow the rules to keep the community looking its best. When homes in the community are listed for rent, there is a concern that the tenants will not abide by the rules.

Renting a Home in an HOA Community

When renting out your HOA home, there are a few things you can do to support community standards. Let's take a look.

Share a Copy of the Bylaws

As the owner of a property in an HOA community, it's your responsibility to ensure that the renters know the HOA rules and regulations.

Having informed tenants will protect your investment and your relationship with the HOA board.

Grounds for Termination

Even when tenants know the rules, they sometimes break them, whether inadvertently or on purpose. To keep this from becoming a problem for the community, add a grounds for termination clause in the lease.

A clause like this will put the HOA board at ease because they'll know that you'll be able to evict the rule breakers.

The clause should include a stipulation stating that the tenant will pay any fines associated with the broken rules.

HOA Fees

HOA fees are the owner's responsibility. To ensure that the fees are covered and get to the HOA on time, the homeowner should include the fees in the monthly rent.

The HOA uses that money to pay vendors. It also goes toward maintaining community amenities like playgrounds, tennis courts, and pools.

Rentals in HOA Community Neighborhoods

Is your homeowner's association struggling with handling rentals in HOA community homes? It's a balancing act to keep all homeowners satisfied.

Do you know who can help with your HOA management needs? PMI Scioto Metro provides professional community association management in the Greater Columbus, Ohio metro area.

Contact us to set up a consultation through our website or by calling 614-285-5629.