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Tenants tend to break the HOA rules more, tend to neglect maintenance, and normally aren't interested in anything that has to do with maintaining the value of a property.
Landlords are often responsible for paying fines assessed against properties where these violations occur. As a landlord with HOA properties, I handle maintenance notifications (painting, roof) and pass on notifications like parking, trash can, lawn maintenance to tenants. Note my leases state that tenants are financially responsible for those types of violations if fined.
It's quite common for a limit on the number of rental properties allowed in a HOA community. There's these things called state laws, county laws, city/town/village laws aside from federal laws. Many mortgage companies also place restrictions on rentals in HOA communities due to past issues. Typically, rental properties don't hold their value because tenants don't give a rats behind and don't take pride in their home like someone who owns their home......notice I said typically and not always.
The landlord controls the quality of their properties. As a landlord my properties are the best I can make them and the best I can keep them, not only for tenant satisfaction but also for re-rental and sales value.
No, sometimes they are not legally binding. But you will typically need to sue to find out. Many times an HOA have not imposed these rental restrictions in a legal way, therefore not enforceable.
This is all a question of local law. Mainly state. We have tracts with no rentals allowed. And we have tracts with a given percentage allowed. We have tracts that tightly enforce limits and tracts that don't.
Read the HOA documents. Here you can change to no or limited rentals but it does not bind existing owners who can do whatever was allowed when they bought. However the next owner is bound.
In general, depending on the area, an HOA can allow or not allow rentals; can allow a certain number of rentals; can offer a waitlist after that number is reached so that anyone else who wants to rent out their place would go on a waiting list; can allow short term rentals or short term rental accessory units if that status is available in the municipality so that one could rent one's home for the short term period, say, less than a month...and do that throughout the year;
I'm wondering now how the HOA even knows what percentage of the houses are rentals. I don't recall ever being told I have to inform the HOA my houses are rentals. I am required to register them as rental property with the county and that is a matter of public record. (And serious fines if you rent without registering with the county.)
On occasion I've been on the phone with the HOA and mentioned owning multiple properties when I was discussing one property and got no reaction from them.
Our HOA knows because the tenants have to be approved by the board, not the landlord. The rental application go to the board and the board runs the credit/background check and give the ok or the no go.
Not only can they limit the total number of rentals, they can also limit the number an individual person can own....on our board, the more you own, the more 'say' you have.
They can't just arbitrarily impose new rules. If the CCRs say that they can limit the number of rentals, then they can. If they don't say that, then at the next meeting, a vote needs to be taken to amend the CCRs. If the vote passes, then they can start enforcing that. If it doesn't, then they can't.
Otherwise, you get one board member who doesn't like rentals, and they just start making things up.
We had a situation like this. An owner we manage for started getting notices that his property could no longer be a rental (it had been for years), and when the current tenant's lease was up, he had to kick them out, and either sell the house or move in himself. It was nowhere in the CCRs. He ended up hiring an attorney, who sent a cease and desist letter. He ended up selling the house a few years later, because the neighbors who were board members made the tenant's lives miserable (sending complaint letters if there was 1 weed in the yard, etc). He got sick of hearing the complaints, which was probably the intention of the board.
I'm wondering now how the HOA even knows what percentage of the houses are rentals. I don't recall ever being told I have to inform the HOA my houses are rentals. I am required to register them as rental property with the county and that is a matter of public record. (And serious fines if you rent without registering with the county.)
On occasion I've been on the phone with the HOA and mentioned owning multiple properties when I was discussing one property and got no reaction from them.
Where I live renters have to have background checks and be approved by the Association. We received notification a while back that some owners were skirting this requirement. They find out soon enough if a unit has a tenant in it because you have to have a parking permit on your vehicle and a transponder or pass key to get in the front gate. The only way to get these things is to go down to the office and show them your lease or purchase documentation.
Right now where I live almost 50% are renters and it shows by the number of emails that are sent out regarding different violations. It also prevents people from using their VA benefits as the percentage of renters to owners is way too high. Many people buy in here as investment property or they are snowbirds. Too few actual owners and you get too many people that just don't care about picking up after their dog, following the rules at the pool, etc.
If I actually buy a condo or a townhome I would prefer it if the HOA allowed little to no renters.
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