A homeowner association (HOA) is an organization that supervises a subdivision of apartments, townhouses, condominiums, or single-family homes. Every property owner within the subdivision automatically becomes an HOA member. As such, he must pay dues to the organization and abide by its policies. In turn, the HOA’s board of directors oversees the proper maintenance of subdivision common areas.
As the property owner, you are automatically a member of the applicable HOA, even if you rent your space to a tenant. Therefore, you will be the HOA’s primary point of contact and liable for any rule violations on your property. To maintain a positive relationship with your local HOA, here are some tips to help you and your tenants stay in compliance:
Know your HOA’s covenants, conditions, and restrictions (CC&Rs).
Every homeowner association operates a little differently. So, make sure you understand the details of the organization overseeing your rental unit. While an HOA must comply with the Fair Housing Act and can’t prohibit anyone from renting a home, they can impose certain lease restrictions. For instance, they may limit how many units the tenant can rent or how long he may lease the property. Additionally, be aware of any limitations regarding parking, decorations, pets, fencing, lawn care, etc. Provide your renters with printed copies of all HOA documents to ensure they grasp the importance of abiding by HOA rules.
Clarify responsibilities in your lease.
The involvement of an HOA can muddy the waters regarding landlord and tenant responsibilities. Therefore, make sure your lease leaves no room for confusion. The agreement should specify that tenants must abide by any HOA regulations. It should also clarify whether the landlord or tenant will pay HOA dues. Since an HOA can’t fine a renter for noncompliance, your lease should stipulate that renters must reimburse any fines for CC&R violations.
Maintain good communication.
Just as an HOA can’t bring an action directly against your tenant, your tenant must go through you to file a request or complaint. Keep an open line of communication with both the HOA and your renter to avoid misunderstandings and delays. Being transparent with the HOA regarding your rental agreement will establish a good working relationship. And if you’re notified of a violation, promptly resolve the matter with your tenant before it escalates.
Proactively keeping yourself and your tenants well-informed will make your property’s HOA an asset rather than a hindrance. Stay involved since both the HOA and your renters rely on you to mediate problems.
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