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Tips for Handling Rentals in HOA Communities

Not everyone who lives in a house owns the home. Many people rent from the homeowner but treat the space as their own. The topic of rentals is one that is often debated in homeowners associations because it comes with many pros and cons. While some renters never cause any issues, others can leave much to be desired.

So how should HOAs handle rentals in the community?

This can vary from one association to the next based on their preferences and governing documents. Some HOAs have very strict rules in place when it comes to what percentage of the community can be rentals, the minimum length of time a rental must last, and who is responsible for HOA fees and rule violations.

  • Check the governing documents.

Before you decide to rent your home out, make sure you double-check what the governing documents have to say. Work together with your HOA to gain approval and ensure you know what requirements and expectations are in place once you become a landlord. You’ll want to keep the association up-to-date on who is living in the home, their contact information, as well as your current contact information. If any problems arise, as the landlord, you would be one of the first people the board reaches out to since it is legally your property.

  • Educate tenants.

Tenants of any rental property should receive a copy of the HOA’s governing documents. Make sure they are clear on the rules and regulations to help minimize any violations. Landlords may also have some of their own expectations for their tenants, and these should be clearly communicated as well. Take steps to ensure that tenants are able to enjoy the space and the amenities of the community while also being respectful of the association and adhering to its rules.

  • Put processes in place.

The HOA should have processes and procedures in place for managing rentals. For instance, if the renter violates the rules, who is notified and who is responsible for any fines? Does the renter pay HOA dues directly to the association, or does the landlord pay the HOA and then the renter pays the landlord? What documentation must the landlord provide to the renter and to the association? The board may want to work with a legal professional to clearly define rules and make sure they are fair and enforceable.

The board should work together with homeowners to understand their thoughts and concerns when it comes to rentals so that effective rules can be put in place to protect the best interests of everyone involved. Renters can be a wonderful part of the community, just as homeowners are. For support in handling rentals and working with homeowners, partner with a property management company like Kuester. Contact us today to learn more about the valuable services we can provide.

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Bryan Kuester

Bryan Kuester

Bryan is the CEO of Kuester Management Group. He has over 15 years of managing community associations throughout North and South Carolina.

His specialties include Community Association Management - maintenance, budgeting for operational and reserve funding, long-range planning, covenant enforcement, amenity management, onsite management, large scale management.