The verdict is that in 2024, homeowners associations, or HOAs, are more popular than ever in the United States. The market for HOAs is even expanding into rental communities, with residents wanting the stability and protection that these organizations offer.
Are you an HOA community manager who has rentals in an HOA community? This can be a tricky situation to navigate for everyone involved.
Here are some rental property tips for community property management in a homeowners association.
1. Communication and Transparency
You need to be in communication with the HOA board and management personnel about rentals in the community. If a property owner decides to sublet their home and turn it into a rental, they must notify the proper parties as well.
Make physical copies of lease agreements and other documents for your records, and send them virtually to the HOA management.
2. Know the HOA Rules and Guidelines
When you enforce HOA rental policies, you also need to be aware of all of the rules and guidelines of the HOA community. What is their policy on pets? How long can residents display holiday decorations?
3. Educate Tenants
You also need to be clear with tenants and provide them with a copy of the HOA rules. Make sure you're available to answer any questions they may have.
Tenants have to be aware of things like property maintenance and additional information they may need to provide since they plan to rent, not own. These stipulations need to be included in the lease agreement as well.
4. Establish a Rental Limit
If one resident wants to rent out their HOA property, then it may be an incentive for others to do the same. However, you do not want an HOA community filled with rentals.
The best way to nip this in the bud is to establish a rental limit. This means that only a certain number or percentage of properties in the community can be rentals. The remainder has to be held by the original property owner.
5. Screen Potential Tenants
The best way to prevent problems in your HOA community is to screen tenants beforehand. Evaluate things such as credit, eviction history, and gross monthly income.
Tenant screening allows you to find trustworthy people to reside in the HOA community. Owners will also save money because they won't have to pay for evictions or major repair costs.
If you work with a property management company, they can handle all aspects of the tenant screening process for you.
Master Managing Rentals in an HOA Community
If you are hesitant about managing rentals in an HOA community, you do not need to worry any longer. Use this guide to streamline your operations and make it easier for yourself, the HOA, and your tenants.
PMI Whiskey Trail is the partner you need in Nashville to manage your HOA rental policies. Since 2021, we have been helping clients like you in the greater Nashville area, focusing on accountability and customer service.
Contact us today if you have a question, or if you'd like to schedule a consult.
