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How Does An HOA Affect Renting My Home?

Having an HOA may make things a bit more challenging as a homeowner if you want to rent out your property. Thankfully, it does not make it an impossible feat. Understanding your HOA rental restrictions is the first step to getting your property rented out.

Article at a Glance:

HOAs each have their reasons for having limitations on rental properties in their developments, but it’s worth knowing your options. Before you get started with the process, it’s crucial to understand the reasoning behind why HOA rental restrictions are in place.

Then, follow these steps to get your home rented:

  • Pay your fees
  • Find good tenants
  • Understand tenant approval procedures
  • Cover services
  • Hire a professional management company

The Affects of HOA of Renting Property

It is important to note that each HOA has a unique set of rules. You must get understand those rules and communicate them to prospective tenants when they move in. It can be confusing and even dangerous to put a tenant in the house without knowing the rules, and they may do some things or have some expectations that the rules won’t allow.

Another reason it’s essential to have a copy of the HOA rules and regulations is so that you can add it as a part of the lease agreement. That way, the tenant knows what they’re getting into.

Why HOAs Limit Rentals

Often HOAs limits rentals because of a perception that they will bring in individuals to a community who might not usually live there. With this perception comes the concept that these individuals will not properly care for the home or abide by the HOA rules since the responsibility ultimately depends upon the homeowner, not the renter.

Having a high number of rentals in a community can negatively impact an HOA, so some lenders have set guidelines regarding how many rentals are allowed in a particular HOA. These restrictions are most commonly found in condominium projects but can be found in any type of housing development.

Other concerns HOAs tend to have about rentals include:

  • Lacking community spirit from short term renters
  • Frequent move-ins and move-outs
  • Handling of maintenance issues

As a property owner, your best bet is to understand some of these perceptions and figure out a way to address these concerns to the best of your ability.

Know Your Restrictions

HOA restrictions, if present, take one of two forms, including:

  • Requirements for new owners to live in a property for a specific amount of time before they are allowed to rent it out
  • Limitations on the total number of rented residences in one development

Even if there are no set HOA restrictions, as a homeowner with an HOA, you should still make sure to have the following questions answered before renting out your property:

  • Does the HOA have the ability to evict your tenant? Under what circumstances?
  • Does the HOA have to approve a tenant? How long might that take?
  • Will the HOA require any private information about the renters?
  • Does the HOA require any additional information from renters?

What Do You Need to Do?

HOAs are particularly picky with rental houses. It seems like they sometimes have a vendetta against rental homes, which is sometimes good because it makes sure that you keep up.

Pay Your Fees

The first and most obvious step is to make sure that your HOA fees are being paid. Remember that regardless of whether or not your property is currently being rented, you as the homeowner as still responsible for paying your HOA fees.

Find Good Tenants

While every landlord’s dream is to find good tenants, this can be especially helpful when dealing with an HOA. Although some HOAs might make it challenging to rent out your property, if they allow it, it can be beneficial to work hard to find good tenants.

Understand Tenant Approval Procedures

In some HOAs, it is required that the HOA also complete a screening process of any potential tenants to your home. While it’s not necessarily a requirement backed by law, it’s definitely in your best interest to follow through with whatever procedures they have in line. After all, the HOA has the power to make a living or owning, in their community, extremely difficult on you and your tenants.

You shouldn’t let your HOA become too demanding, though. Make sure you understand what the procedures are ahead of time. Also, make sure that your tenants will not have to submit more documentation than you had to own the home in the HOA.

Cover Services

Another helpful tip is that sometimes it helps to pay for certain services. Things like having the lawn sprayed or even having your landscaping done might be worth you paying for and making adjustments to the monthly rent as needed. This way, you can make sure that your property always jives with the HOA’s covenants.

That way, there’s no question mark around whose responsibility it is and whether the grass is trimmed exactly like it’s supposed to, and the trees are trimmed back exactly what they’re supposed to.

Sometimes it’s just better for you to pay for some of those services. There are plenty of different services, depending on your HOA rules, but landscaping is the first one that comes to mind.

Hire a Professional Management Company

Sometimes HOAs can be resistant to rentals, but it can help put your HOA manager at ease to know that a professional management company is handling the house. HOAs prefer to work with management companies because their business is very similar. It’s very nice for them to be able to communicate with a professional management company in the event there’s an issue.

Final Thoughts

If you are looking to rent out your home that is a part of an HOA, it’s crucial you find out all of the details first. Even if HOA rental restrictions are not in place, there are certain things you must find out before renting out your home. The best bet is to handle everything with extra caution to show your HOA you are renting your home with professionalism and respect for the community.


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